Traders may remain cautious as the second-quarter reporting season progresses to its next stage.

The stock market’s upward momentum appears to have firmed up, although occasional pullbacks intersperse it. Early indications suggest a firmer opening on Monday, following the broader market's finish last week just shy of its record.

Traders may remain cautious as the second-quarter reporting season progresses to its next stage. In its latest weekly commentary, FactSet said the blended earnings growth of S&P 500 companies is expected to be 5.6%. This, however, would mark the slowest pace since the fourth quarter of 2023.

Tech earnings news flow starts in earnest this week with Texas Instruments (TXN), Intel (INTC), and IBM (IBM) among the early reporters. FactSet’s data showed that the IT sector will likely see the second-highest year-over-year (YoY) earnings growth (16.5%) among the 11 S&P 500 sector classes, with semiconductor companies showing particular strength. 

As of 12:46 a.m. ET on Monday, the Dow and the S&P 500 futures were up about one-tenth of a percentage point. The Nasdaq 100 and Russell 2000 futures climbed nearly 0.20%.

The Nasdaq Composite Index reached its fifth consecutive record closing high last week as traders pinned their hopes on the tariff deadlock being resolved and expressed relief over some positive economic data and earnings reports.

For the week ended July 18, the Invesco QQQ Trust (QQQ), an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index, added 1.3%, and the SPDR S&P 500 ETF (SPY) gained 0.64%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) ended the week little changed with a slight negative bias, while the iShares Russell 2000 ETF (IWM) moved up 0.28%.

The unfolding week’s economic calendar is light. However, it does sport some key catalysts, including the Federal Reserve Chair Jerome Powell’s opening remarks at a banking conference (Tuesday), the weekly jobless claims and flash private sector activity readings and the June durable goods orders data. 

Traders may also watch the developments on the tariff front as President Donald Trump's Aug. 1 deadline looms. 

On Monday, the Conference Board will release its Leading Economic Index for June at 10:00 a.m. ET. Economists, on average, expect a 0.2% decline in the index compared to May’s 0.1% dip.

Key among the earnings reports due Monday are from Verizon (VZ), NXP Semiconductor (NXPI), Steel Dynamics (STLD), Cleveland-Cliffs (CLF), and Domino’s Pizza (DPZ). 

Sharing two charts from BofA’s Global Fund Manager Survey, Carson Group Chief Investment Manager Ryan Detrick said, “Stocks are at new highs, yet sentiment is normalizing at best.”

“There aren't any signs of froth out there.”

Crude oil futures held above the $66-a-barrel at the start of the week, while gold futures traded flat as the yellow metal approached $3,360.

The 10-year note yielded 4.42% in the Asian session, down 1.1 points. The U.S. dollar remained flat against most major currencies, although it weakened against the Japanese yen. 

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