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Earnings Surprises Drive Market Optimism

July 27, 2025

From the desks of Stanley Katz & Lauren Madera

MORE SWEET CELEBRATIONS: ENJOY CREME BRULEE TODAY AND MILK CHOCOLATE TOMORROW IN HONOR OF THEIR NATIONAL DAYS!

The three major U.S. stock market indices delivered solid gains this week (i.e., DJIA: +1.26%, S&P 500: +1.46%, Nasdaq: +1.02%), marking a notable reversal from the previous week’s mixed performance. This strength came as earnings season gained momentum with companies across multiple sectors delivering better-than-expected results. Q2 earnings season paints an improving growth picture, per Zacks Investment Research. 87.2% of reporting companies thus far have beat earnings-per-share estimates, and 80.3% have exceeded revenue expectations. Between strong earnings and reassuring management commentary, estimates for the second half of the year are starting to tick higher.

Capital Group’s analysis of global security trends provides compelling context for this market optimism. Like a homeowner finally upgrading their security system after years of procrastination, nations are recognizing that robust defense capabilities aren’t optional luxuries—they’re essential investments in long-term stability and growth. The emerging focus on solidifying dependable supply chains represents a multi-year effort that extends well beyond traditional defense contractors. This “security imperative” is driving innovation in everything from critical infrastructure to cutting-edge technologies, offering investors exposure to a durable theme that appears increasingly vital in our interconnected yet fragmented world.

Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.

Zacks:

  • Q2 Earnings Results Show an Improving Growth Picture

Capital Group:

  • Why security could be a durable investment theme

Argus:

  • Earnings in the Shadow of Tariffs

Goldman Sachs:

  • Global Economics Wrap-Up | July 25, 2025

VanEck:

  • VanEck Mid-July 2025 Bitcoin ChainCheck

Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500

Source for weekly stock market returns: Barron’s.

Investing involves risk, including the possible loss of principal. The information contained herein has been prepared solely for informational purposes. Nothing contained herein should be construed as a recommendation to either buy or sell any security or economic sector, or implement any strategy discussed. Please consult with your financial advisor, accountant, and/or attorney before acting on this information. ClientFirst Financial Strategies, Inc. is a DBA of OneSeven, LLC (OneSeven). OneSeven is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC).  Registration with the SEC does not imply a certain level of skill or training. Investment Products are Not FDIC Insured, Offer No Bank Guarantee, and May Lose Value.

OneSeven does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third parties.

Filed Under: Latest News

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Disclosures: OneSeven (“OneSeven”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. Services are provided under the name ClientFirst Financial Strategies (“ClientFirst”), a DBA of OneSeven. Investment products are not FDIC insured, offer no bank guarantee, and may lose value.

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