The markets look to finish relatively flat this week, as many companies, including big tech reported earnings. Most hyperscalers reported their quarterly earnings this week, and overall, they did not disappoint analyst estimates. Microsoft and Amazon led the way, posting notable growth in their cloud business segments. Companies such as Google, Microsoft, Meta, and Amazon all announced this week that their 2026 projected AI spending has been increased.
In corporate news, we entered the thick of earnings season this week. Most of the big tech names have had strong earnings and revenue growth, strengthened by the continued spending in the AI space. Oil giants – Chevron and Exxon – posted great results this week, as the spike in oil prices caused them to post record quarter profits. Currently, oil prices have gone back up slightly, with Brent crude hovering at the low $80s this week, below the peak of $125 from April. Amazon reported stellar results this week and increased its 2026 capital expenditure to $200 billion due to AI demand. Its cloud segment grew at a staggering 37%, its fastest annual growth since 2021.
In other news, one of the world’s most prestigious and luxurious car brands announced this week that its first-ever EV has achieved stunning success. Ferrari launched its first EV in May, the Ferrari Luce, and it has already achieved its 2026 sales target of just under 500 units in just two months. Although this figure is only a fraction of its total units sold of 13,640 last year, it plans to sell 2,500 units by 2030. The short history of the EVs’ attempt to establish itself as an alternative to gas-powered vehicles has been volatile. Political and business leaders such as Elon Musk have stated that the shift to electric vehicles is inevitable. However, EV’s are not gaining traction as fast as expected, as seen by the figures in California. A recent report showed that hybrid cars have overtaken EV’s for the first time since 2020, while EV sales have declined 25%. This has also taken place while gas prices have been high throughout 2026. At least for now, it looks like EV’s are hovering around 7% of all new U.S. vehicles.
This week in economic news, Q2 GDP was released and came in at 1.5% quarter-over-quarter growth, below the estimates of 2.1%. The Federal Reserve’s preferred inflation metric showed inflation still elevated but easing in some areas. Headline Personal Consumption Expenditures (PCE) came in at 3.7%, down from 4.1%, while core PCE was 3.3%, slightly down from 3.4% last month. In context, 3.7% PCE is much higher than the range since 2024, which has been 2.3-2.9; however, for now it’s a trend in a positive direction from the highs caused by the Iran conflict. Consumer income spending rose 0.2% in June, below the 0.3% estimate and much lower than the prior 0.7% in May.
Another company that made headlines this week is Jersey Mike’s, which went public on Thursday. Jersey Mike’s was originally founded as Mike’s Subs in 1956 in Point Pleasant, New Jersey by Michael Ingavallo and his wife, Marie. They owned several locations in New Jersey and Florida, as part of Marie’s family business. The watershed moment occurred two decades later in 1975, when the store was bought by Peter Cancro, with a loan from his high school football coach. Cancro, who at the time of the purchase was only a 17-year-old, quickly expanded to other locations and franchised the restaurant in 1987. By 2014, it had 750 locations, and the figure today stands around 3,500. The only hoagie sandwich chain larger is Subway, with more than 35,000 locations.
Ryan Motsinger
Licensed Investment Advisor Representative Research & Trading Specialist | Harvest Financial Advisors, LLC | 513.779.3030 | 800.361.0329