Key Takeaways
- The S&P 500 edged 0.1% higher on Monday, July 21, 2025, closing above the 6,300 level for the first time as earnings season kicks into high gear.
- Gains in broadband internet subscribers and prepaid wireless customers helped Verizon top estimates. Shares of the telecom giant surged.
- Shares of EQT and other natural gas players dropped as weather forecasts and supply concerns pressured natural gas prices.
Major indexes posted modest gains Monday as investors prepared for a major wave of earnings reports set for release throughout the week, including results from big names such as Tesla (TSLA) and Coca-Cola (KO).
The S&P 500 gained 0.1%, reaching an all-time closing high as the new trading week got underway. The Nasdaq added 0.4%, extending an impressive streak of record closes that dates back to the beginning of last week. After trading in positive territory for most of the session, the Dow lost ground in the afternoon to close with a minor loss.
Verizon Communications (VZ) shares jumped 4%, gaining the most of any stock in the S&P 500. The telecommunications giant topped second-quarter sales and profit estimates and lifted the low end of the range for its full-year profit forecast. Stronger-than-expected gains in broadband internet subscribers and an increase in wireless retail core prepaid customers helped drive Verizon's strong quarterly performance.
Hershey (HSY) shares gained 3.2% on Monday, adding to gains posted late last week after U.S. Census Bureau data showed a stronger-than-expected uptick in retail sales in June. The indication of sustained consumer spending despite tariff concerns represents a welcome demand signal for the chocolate maker, which has been navigating challenges related to high cocoa prices.
Gold prices reached their highest level in more than a month, boosted by a weakening U.S. dollar, uncertainty ahead of President Trump's Aug. 1 tariff deadline, and anticipation of the Fed potentially edging toward interest-rate cuts later in the year. Shares of Newmont (NEM), the world's largest gold mining company, advanced 2.9%.
Shares of Google parent Alphabet (GOOGL) were up 2.7% ahead of the tech giant's quarterly earnings release, set for Wednesday afternoon. Analysts at Morgan Stanley and Bank of America lifted their price targets on Alphabet stock ahead of the report, highlighting growth expectations driven by generative AI and ad spending in Google search.
Natural gas futures prices dropped around 7%, pressured by elevated production levels and forecasts for cooler summer temperatures in parts of the U.S., reducing demand for natural gas to power air conditioners. Shares of natural gas companies dominated the list of the S&P 500's weakest performers on Monday. EQT Corp. (EQT) stock dropped 9.5%, falling the furthest of any constituent in the benchmark index. Expand Energy (EXE) shares were down 8.5%, while fellow natural gas players Coterra Energy (CTRA) and Targa Resources (TRGP) also lost ground.
Shares of Molina Healthcare (MOH) lost 3.6% after analysts at TD Cowen cut their price target on the insurer's stock. Analysts also reduced their full-year earnings estimate for Molina, noting that high medical costs are pressuring the company's medical loss ratio, or the percentage of premiums an insurer pays out on healthcare claims. The slide for Molina stock on Monday extended steep losses posted late last week after competitor Elevance Health (ELV) cut its full-year guidance, citing high Medicaid and Affordable Care Act costs.
