S&P, Dow Set to Surge as Trump Announces Tariff Deal with Japan; Capital One, Northrop-Grumman Shares Higher; Alphabet, Tesla to Report After the Close

Earnings season is in full swing, with many of the most-recognizable and widely-held companies reporting second quarter results this week.

Among the big movers Wednesday morning is Capital One Financial (COF), its latest filing - after the close Tuesday - reflecting the company's merger with Discover. Accounting for the one-time losses stemming from the acquisition, Capital One reported a net loss of $4.3 billion for the second quarter of 2025, or $8.58 per share.

Investors are looking past those expenses, focusing on stripping out the merger charge, making the adjusted earnings per share $5.48, which handily beat analysts' estimate of $4.04 per share.

The combined company is now a behemoth in the credit industry, with card loans of $269.7 billion, and total loans held for investment rose of $439.3 billion, sending shares in the pre-market ripping higher by more than two percent.

Northrop Grumman (NOC) shares are higher as the company boosted its outlook as the protracted Russia-Ukraine war and conflict in the Middle East have boosted demand for weapons.

Those two reports speak volumes about current conditions. Wall Street is giddy over people being in debt up to their eyeballs and foreigners dying in wars waged with American-made weapons. Money talks and Wall Street and Washington D.C. are loaded to the gills with it.

The reaction to results from AT&T (T) wasn't quite as rosy. Despite a solid quarter that including gains to its subscription base, shares are down more than three percent.

Wednesday's trading is likely to revolve around two of the Magnificent 7 stocks, Alphabet (GOOG) and Tesla (TLSA), both reporting after the close. International Business Machines (IBM) and T-Mobile US (TMUS) will also be releasing second quarter results after the close of trading. Chipotle Mexican Grill (CMG) and Mattel (MAT) also report after the market closes.

Meanwhile, President Trump moved markets again Wednesday morning, announcing a trade deal with Japan that reduced tariffs due to begin being imposed on August 1 to 15%. His blatant market manipulation is disturbing. He and others in his administration, such as Commerce Secretary Howard Lutnick, are making bank on stock trades timed against these well-planned raises and walk-backs on tariffs, just as most members of congress do. It's becoming fairly obvious that the rich are enriching themselves with reckless abandon.

Elsewhere, gold and silver continue to march higher, with gold nearing a record high, at $3,437.90, and silver up to $39.80 per ounce on the COMEX an hour before the opening bell.

WTI crude oil continues to slide in the opposite direction, quoted right around $65/barrel Wednesday morning.

Futures are pointing to a strong open, with Dow futures up 223 points, NASDAQ futures lagging, up just 12 points, while S&P futures are higher by 21.

The Shiller PE gained on Tuesday and stands at 38.45, still just shy of the second-highest ever, 38.58, made in October, 2021. Positive news from some of the tech biggies reporting this week, given the lowered bars analysts have set as targets, should push the 500 to more record highs.

At the Close, Tuesday, July 22, 2025:
Dow: 44,502.44, +179.37 (+0.40%)
NASDAQ: 20,892.69, -81.49 (-0.39%)
S&P 500: 6,309.62, +4.02 (+0.06%)
NYSE Composite: 20,658.79, +144.32 (+0.70%)