Last week gave us a wild mix of earnings reactions - apparel stocks clawed their way back from Trump’s Liberation Day selloff, and several market behemoths had historic earnings reactions.
Meanwhile, the big banks posted solid numbers but couldn’t catch a bid.
Now, we’re heading into one of the most important weeks of the season.
Tesla steps up to the plate on Wednesday, and this report could do more than move one stock - it could set the tone for the entire Magnificent 7 and decide the next direction for mega-cap tech.
Let’s recap last week’s key moments and look ahead to what could be a market-defining week.
After Trump’s so-called Liberation Day, the apparel manufacturing industry was left for dead. But after months of selling, the group is finding its footing.
If you want to understand where this group is headed, look at Levi Strauss & Co. $LEVI. The stock recently had its 2nd-best earnings reaction ever following a blockbuster earnings report. Revenue and EPS both beat estimates, gross margins reached a record high, and the management team raised full-year guidance despite ongoing tariff headwinds.
Fastenal $FAST continues to show why it’s one of the most reliable names in the industrial sector.
The company just delivered another double beat for Q2 2025, and the market rewarded it with a 4% rally, marking its 7th positive earnings reaction out of the last 8 quarters. The stock is trading at fresh all-time highs following this earnings event.
This was the official start of the new earnings season with Big Bank Earnings Day.
Every major bank except Citigroup $C finished lower. A few of the stocks had their worst earnings reactions in years. Even JPMorgan $JPM couldn’t hold onto its gains despite a double beat...
Earnings season rolled on with another busy day of reports, and the market’s reaction was anything but uniform.
Wednesday's trend of banks being punished for reporting double beats continued. However, we found the Johnson & Johnson $JNJ report to be the most interesting. They delivered a clean double beat that sent the stock up over 6% - its best earnings reaction this century.
PepsiCo $PEP had its best earnings reaction this century after a blockbuster earnings report.
Abbott Laboratories $ABT suffered its worst earnings reaction since 2016 following a double beat. This was drastically different than the J&J earnings reaction on Wednesday.
What's happening next week 👇
Next week will be packed with earnings events, so there will be plenty to cover at The Daily Beat.
On Monday, we'll hear from Verizon $VZ, NXP Semiconductors $NXPI, and Domino's Pizza $DPZ.
Later in the week, we'll hear from Alphabet $GOOG, Lockheed Martin $LMT, Intuitive Surgical $ISRG, GE Vernova $GEV, and many more.
The most important report?
Tesla $TSLA.
After the closing bell on Wednesday, Wall Street expects the $1T Magnificent 7 stock to report revenues of $22.42B and earnings of $0.40 per share.
The stock is trading near all-time highs, and a strong quarter could be the final push toward a $1T valuation.
Here's the TSLA setup ahead of Tuesday's earnings event 👇
Tesla is reclaiming the VWAP, anchored to its all-time high - a level that has been rejected inevery rally for the past two years. If this breakout holds, a strong quarter could be the catalyst that sparks a move toward the prior highs around 415.
But this isn’t just about the stock price.
Tesla’s story has evolved far beyond cars. Investors are watching for updates on the RoboTaxi network, energy storage expansion, and the integration of AI into its business model.
The energy business and Dojo training chips are creating entirely new revenue streams that could redefine Tesla as more of a technology platform than an automaker.
This earnings report will serve as a referendum on whether the long-term narrative remains valid.
Now here’s where it ties into the bigger picture 👇
Tesla isn’t just another company - it’s one of the Magnificent 7, the most influential stocks in the market. Together with Nvidia, Microsoft, Amazon, Alphabet, Meta, and Apple, these mega-caps represent nearly 25% of the entire U.S. stock market.
And if you look at the MAG 7 ETF $MAGS, it has been quietly coiling beneath the December 18th peak from last year.
It hasn’t broken out yet, but a strong Tesla report could be the spark that pushes MAGS above 58, igniting a fresh leg higher for the most important stocks in the market and setting the tone for the rest of earnings season.
So while we’ll also hear from a large variety of companies next week… It’s really Tesla Week.
Thank you for reading.
- The Beat Team
P.S. The Magnificent Seven now command nearly 25% of the entire U.S. stock market, a staggering concentration of power in just a handful of names.
Crypto has its own version of this dominance - Bitcoin currently accounts for over 60% of the entire cryptocurrency market cap.
But just like Tesla and its peers sparked massive wealth creation, the next wave of winners in crypto could emerge from outside the obvious leaders.
Louis Sykes has just released a brand-new report explaining why he believes crypto is on the verge of a $10 trillion explosion - and which coins could lead the way.
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