U.S. Stocks Rally on Strong Retail Data as Netflix Earnings Loom

The Dow Jones Industrial Average climbed 180 points, or 0.4%, while the S&P 500 and Nasdaq Composite ROSE 0.48% and 0.79%, respectively. Robust retail sales figures fueled optimism, with June's data showing a 0.6% monthly increase—a sharp rebound from May's 0.9% decline. Consumer resilience persists despite inflationary pressures.

Netflix takes center stage as earnings approach, with analysts projecting $7.07 per share—a 45% year-over-year surge. The streaming giant's performance could set the tone for tech earnings season.

Inflation-adjusted spending tells a more nuanced story. Real consumer spending grew just 0.3% in June, significantly below the nominal figure. "The consumer basically seems to be fine," noted JPMorgan Chase CFO Jeremy Barnum, though he acknowledged widening disparities between income brackets.