Dow Jones Today: DJIA Gains on Big Tech Earnings as Consumer Sentiment Ticks Up

The Dow Jones (DJIA) is set to end the trading week on a high note following a busy week of earnings.

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Amazon (AMZN) is on track for its best daily percentage gain since 2012 after it reported its second-quarter earnings. The e-commerce leader reported revenue of $200.61 billion, topping expectations of $196.47 billion. Its adjusted EPS of $1.97 was also above estimates of $1.82. Furthermore, Amazon Web Services (AWS) revenue growth accelerated to 37% from 28% in the prior quarter. Amazon credited the gains to rising AI and chip demand.

Meanwhile, the University of Michigan's Index of Consumer Sentiment was 55.2, up from 54.4 in June and above the estimate of 54. However, sentiment is still down by 11% compared to a year ago, with concerns centered on inflation, gas prices, and purchasing power. Year-ahead inflation expectations dropped to 4.2% from 4.6%, while long-term inflation expectations remained unchanged at 3.3%. Both readings have risen significantly since the start of the U.S.-Iran war.

Finally, the three Fed officials who dissented in favor of a 25-bps rate hike earlier this week provided updates on their stance. All three policymakers pointed to the risk of sticky inflation. Following their statements, the odds of multiple hikes by year-end edged higher. The odds of two hikes rose to 37.5% from 31.7% a day ago, while the odds of three hikes climbed to 9.7% from 6.3%, according to the CME FedWatch tool.

The Dow Jones is up by 0.38% at the time of writing.