By Heard Editors

What Happened in Markets Today

Netflix fell 5% after a positive quarterly earnings report. The streaming giant beat expectations with its second-quarter revenue and upgraded its full-year guidance. Investors were unimpressed, however, amid questions about how it will grow into an inflated valuation: its shares are up 36% this year.

Chevron closed its $53 billion acquisition of Hess. The move came swiftly after an international court cleared a bid by Exxon Mobil to derail the deal. Shares of Chevron fell nearly 1% and Exxon was down 3.5%.

A Fed governor who could succeed Chair Jerome Powell said he favored an interest-rate cut at the end of July. Christopher Waller said the U.S. economy's momentum had slowed and a cut was needed, a stance that aligns with President Trump's repeated urging for lower rates. Powell and other Fed officials have been reluctant to reduce rates until the economic impact of Trump's tariffs and other policies is clearer.

Consumer sentiment improved this month. A University of Michigan index rose slightly in preliminary July figures, matching forecasts. Consumers expected lower inflation than they did last month, although overall sentiment is weaker than it was at the end of last year.

Stocks didn't move much. Heading into the weekend, the S&P 500 and Nasdaq ended close to flat. The Dow fell 142 points. The S&P remains close to an all-time high. Nasdaq hit its fifth straight high.

This analysis comes from the Journal's Heard on the Street team. Subscribe to their free daily afternoon newsletter here.

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(END) Dow Jones Newswires

July 18, 2025 16:38 ET (20:38 GMT)

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