Chip Stocks Steal the Spotlight During Earnings Kickoff

This week brought a flood of major bank earnings. This week, the major indexes traded sharply in both directions as investors balanced the start of second-quarter earnings season against persistent weakness in semiconductor stocks and ongoing geopolitical uncertainty. The major indexes are headed for weekly losses. Second-quarter earnings season is in full swing, with the major banks largely exceeding expectations. Goldman Sachs (GS) stock hit a record high after blowout quarterly results, while strong earnings from UnitedHealth Group (UNH) helped lift the Dow midweek. Elsewhere, Johnson & Johnson (JNJ) topped expectations, while a grim second-quarter warning sent IBM (IBM) plunging. To close out the week, Netflix (NFLX) fell sharply despite upbeat results, as investors focused on the streaming giant's outlook. Semiconductor stocks remained at the center of Wall Street's attention, with the sector swinging sharply throughout the week. Taiwan Semiconductor (TSM) shrugged off record earnings as capital expenditures raised concerns, while the U.S. trading debut of South Korean memory-chip giant SK Hynix (SKHY) sparked a selloff across memory and semiconductor equipment stocks. Meanwhile, quantum computing name D-Wave Quantum (QBTS) is approaching a historically bullish technical setup. Though economic data will be relatively light, earnings season accelerates next week, with reports due from Alphabet (GOOGL), American Airlines (AAL), General Motors (GM), Intel (INTC), Lockheed Martin (LMT), Philip Morris (PM), RTX (RTX), Tesla (TSLA), T-Mobile US (TMUS), and Verizon Communications (VZ), and more.