S&P 500 companies are reporting earnings far stronger than expected despite higher tariffs and mixed economic data, according to The Wall Street Journal. GProfits in the second quarter rose about 12% from a year earlier, well above forecasts of 5% growth, according to FactSet. The bulk of earnings strength is concentrated in tech, particularly Microsoft, Meta, and AI-related suppliers like Nvidia, GE Vernova, Comfort Systems, and Owens Corning. Packaging firms, oil-and-gas drillers, and real estate trusts have struggled, with Essex Property Trust citing weak Los Angeles demand as its shares fell 11%. Investors remain cautiously optimistic about the economy but fear stocks are overvalued, with the S&P 500 trading well above its 10-year average.
