MARKET WRAPS
STOCKS: U.S. stock indexes edged higher as gains in megacap technology names offset weakness in chip stocks. Apple, Alphabet, and Amazon each gained more than 3%.
TREASURYS: Treasury yields fell amid fresh signs of cooling U.S. inflation and a lull in Middle East headlines.
FOREX: The WSJ Dollar Index fell for the second consecutive session.
COMMODITIES: Crude futures rose modestly after the U.S. resumed its blockade of ships in and out of Iranian ports.
HEADLINES
Trump Leans Toward Expanding U.S. Military Operations in Iran
WASHINGTON-President Trump is leaning toward expanding U.S. military operations in Iran after days of briefings from top aides, U.S. officials said. Options include stepping up airstrikes, sending ground forces to seize Iranian islands near the Strait of Hormuz and bombing a fortified site that could be used for covert nuclear work.
Trump hosted a Situation Room meeting Tuesday evening to discuss the potential seizure of Kharg Island and other territory along the Strait of Hormuz using U.S. troops, as well as the potential bombing of a tunnel complex at Pickaxe Mountain, a nuclear-linked site the U.S. has yet to target. Expanding airstrikes against more targets in Iran, including energy sites, also remains a possibility.
The discussion was one of multiple formal and informal conversations Trump has held in recent days with senior officials including Vice President JD Vance, Defense Secretary Pete Hegseth, Secretary of State Marco Rubio and Gen. Dan Caine, the chairman of the Joint Chiefs of Staff, the officials said.
U.S. Producer-Price Index Fell in June
Wholesale prices dropped last month, with June's decline in energy prices helping to cool down the prices charged by producers.
The producer-price index declined by 0.3% in June, the Labor Department said Wednesday, after increasing by an elevated 0.6% in May. Analysts surveyed by The Wall Street Journal were estimating that producer prices held steady last month.
The data landed a day after a modest June consumer-inflation figure on Tuesday showed that prices paid by shoppers also declined last month, pulling down the 12-month inflation rate.
SpaceX Shares Fall Below IPO Price for the First Time
SpaceX shares traded below their $135 IPO price for the first time Wednesday, a sign of waning enthusiasm for the biggest listing of all time.
SpaceX shares slipped more than 2.5% to $132.15 in midday trade before rebounding to end the session at $135.27, which was down less than 1% for the day.
The tech-heavy Nasdaq composite stumbled on Wednesday, falling roughly 0.2%. Shares of technology companies have been volatile in the past month.
BlackRock Shares Rally After Assets Soar Past $15 Trillion
BlackRock shares rallied after the investment firm posted bumper quarterly results and made history as the first investment firm to manage more than $15 trillion in assets.
The stock jumped more than 7% in early trading, and is on pace for the biggest one-day gain in more than a year.
BlackRock took in $192 billion in new client money across its public and private markets businesses during the quarter. That, combined with strong equity markets, boosted its assets under management by more than $1 trillion in the three months ending in June.
Morgan Stanley Posts Blowout Quarter Thanks to Blockbuster IPOs, Newly Minted Millionaires
On Wednesday morning, Morgan Stanley reported a blockbuster quarter that saw the company post record revenue, earnings, and net new assets.
The company's adjusted second-quarter earnings of $3.46 a share, blew past Wall Street forecasts thanks to a surge in investment banking revenue. Analysts had expected the company to report adjusted quarterly earnings per share of $2.93, according to estimates compiled by FactSet. That compares with adjusted earnings per share of $2.13 for the same period a year ago.
Revenue came in at a record $21.3 billion compared to analyst forecasts of $19.7 billion. For the same period a year ago, Morgan Stanley reported revenue of $16.8 billion.
Stripe and Private-Equity Firm Advent Offer to Buy PayPal
Stripe and buyout firm Advent International made a joint takeover bid for PayPal Holdings in a deal that would value the fintech company at around $53 billion, according to people familiar with the matter.
The approach was made in recent days, they added. Stripe and Advent proposed paying $60.50 a share for PayPal, the people said, about a 30% premium above PayPal's closing price Friday.
There are no guarantees PayPal will be receptive, the people added. The company is in the early stages of orchestrating a turnaround under its newly appointed Chief Executive Enrique Lores.
United Airlines Lifts Outlook as Higher Fares Blunt Turbulent Fuel Prices
United Airlines raised its annual profit outlook on the back of strong revenue trends that are easing the pain of volatile fuel prices.
The carrier said Wednesday that adjusted earnings should hit $9 to $11 a share in 2026, lifting the low-end of its previous target by $2 a share. Analysts polled by FactSet had already been expecting the carrier to come in closer to the high-end of its targets.
Air travel demand has held up despite higher airfares, giving United and other airlines cover from turbulent swings in the price of jet fuel caused by the war in Iran, which are pressuring profits across the industry.
Johnson & Johnson Bumps Up Guidance as Sales Rise
Johnson & Johnson raised its forecast for the year after recording higher sales in the latest quarter, helped by strength in several of its cancer drugs.
The drug and medical-device maker said Wednesday it now expects adjusted earnings per share between $11.60 to $11.75 for 2026, compared with the guidance it gave in April for a range of $11.45 to $11.65.
J&J now expects full-year sales of $100.8 billion to $101.4 billion, compared with its prior projection of $100.3 billion to $101.3 billion.
TALKING POINT Banks Are on a Goldilocks Run. Don't Assume It Will Last.
In the stock market, nobody rings a bell at the top to tell you when the good times have peaked. It is the same in banking, and the times right now are looking awfully sweet for the biggest U.S. behemoths.
JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs all reported second-quarter earnings Tuesday. The results were overwhelmingly positive, although their stock-price reactions were mixed.
Goldman gained 9% on surging investment-banking fees and trading revenue. Citigroup dropped 5%, after management implied that returns in the second half wouldn't be as strong as they were in the first. The others had less dramatic moves. Morgan Stanley reports results Wednesday.
All five banks topped earnings and revenue estimates. Each showed improved efficiency overall, with operating expenses declining as a percentage of revenue. Credit losses remained subdued.
Some of the numbers were cartoonishly good. JPMorgan's annualized return on equity was 24%, when analysts were forecasting 19%. It got help from investment gains on its shares in Visa, which was a good problem to have. Goldman, too, reported a 24% return on equity.
JPMorgan Chief Executive Jamie Dimon said, "It's getting close to as good as it gets. We just don't know how long it's going to last." Jeremy Barnum, JPMorgan's chief financial officer, said "the market is clearly extremely risk-on, and we're kind of takers of that."
If investors had a nit to pick with the biggest lenders, it would be with their net interest margins, which remain thin. This is the number, expressed in percentage terms, that shows the difference between the interest they earn on their assets and the costs they pay depositors and debtholders to borrow money.
--Jonathan Weil, The Wall Street Journal
Expected Major Events for Thursday
06:00/UK: May Index of production
06:00/UK: May UK trade
06:00/UK: May Index of services
06:00/UK: May Monthly GDP estimates
08:00/ITA: Jun CPI
08:30/UK: Apr Card Spending statistics
09:00/ITA: May Foreign Trade EU
11:30/UK: Jun NIESR Monthly GDP Tracker
12:15/CAN: Jun Housing Starts
12:30/US: Jun Advance Monthly Sales for Retail & Food Services
12:30/US: Jul Philadelphia Fed Business Outlook Survey
12:30/US: 07/11 Unemployment Insurance Weekly Claims Report - Initial Claims
12:30/US: U.S. Weekly Export Sales
13:00/RUS: Weekly International Reserves
14:00/US: May Manufacturing & Trade: Inventories & Sales
14:00/US: Jul NAHB Housing Market Index
14:00/US: Jun Pending Home Sales Index
14:30/US: 07/10 EIA Weekly Natural Gas Storage Report
20:30/US: Federal Discount Window Borrowings
20:30/US: Foreign Central Bank Holdings
23:01/UK: Jun Scottish Retail Sales Monitor
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Thursday
AMCON Distributing Co (DIT) is expected to report for 3Q.
Abbott Laboratories $(ABT)$ is expected to report $0.96 for 2Q.
Alcoa Corp $(AA)$ is expected to report $2.32 for 2Q.
Ames National Corp $(ATLO)$ is expected to report $0.65 for 2Q.
BancFirst Corp $(BANF)$ is expected to report $1.80 for 2Q.
Bank of South Carolina Corp (BKSC) is expected to report for 2Q.
Bank7 Corp (BSVN,GMAR.XX) is expected to report $1.04 for 2Q.
Cass Information Systems Inc $(CASS)$ is expected to report $0.72 for 2Q.
Citizens Financial Group Inc (CFG) is expected to report $1.24 for 2Q.
Cohen & Steers Inc $(CNS)$ is expected to report $0.87 for 2Q.
FNB Corp $(FNB)$ is expected to report $0.42 for 2Q.
First Financial Bankshares Inc (FFIN) is expected to report $0.51 for 2Q.
GE Aerospace $(GE)$ is expected to report $2.00 for 2Q.
Hingham Institution for Savings $(HIFS)$ is expected to report for 2Q.
(MORE TO FOLLOW) Dow Jones Newswires
July 15, 2026 16:40 ET (20:40 GMT)
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