Absence of economic data does not change optimistic outlook of US companies, major companies are increasing performance expectations to boost the market.

Against the backdrop of a lack of strong economic data or bullish comments, investors seeking positive economic signals were granted their wishes on Tuesday as several large transportation, consumer, and industrial giants in the United States raised their performance expectations, releasing optimistic signals. Jet engine manufacturer General Aviation (GE.US) has benefited from the recovery of air travel and maintenance services, as well as the rise in demand for new engines, prompting them to raise their full-year expectations for the second consecutive quarter. The company's stock price has already risen by 80% this year, and this time they also raised their revised revenue growth rate expectation from "14%-16%" to "17%-20%." Following this, 3M Company, Northrop Grumman Corp., and Raytheon Technologies Corp. (RTX.US) all followed suit by raising profit guidance, mentioning confidence in the "upcoming year" or similar optimistic trends. The optimism has also spread to the consumer sector: tobacco manufacturer Philip Morris International Inc. (PM.US) raised profit guidance and pledged to surpass growth targets for 2024-2026; Coca-Cola Company CEO James Quincey also stated, "confident in achieving goals in the coming year." Meanwhile, General Motors Company (GM.US) benefits from the surge in pickup truck sales and a new relief in the Trump administration's tariff policy on automobile components, also raising their full-year expectations. In a letter to shareholders, General Motors Company CEO Mary Barra thanked U.S. President Donald Trump for extending the partial import tariff exemptions enjoyed by companies that produce and sell entire vehicles in the U.S. until 2030. She stated, "General Motors Company is vigorously investing to expand its already extensive domestic purchasing and production footprint, and the company is currently in a very favorable position." The Detroit-based automaker, whose stock performance has been lagging behind the S&P 500 Index this year, saw a 9.3% increase in its stock price in pre-market trading on Tuesday. By early Tuesday, U.S. stock market futures were relatively flat, while the S&P 500 Index had accumulated a 1.6% increase over the past two trading days, marking the best consecutive gains since June. While most U.S. companies that have released their financial reports have exceeded profit expectations so far, it is still early in the reporting season, and negative surprises could emerge in the coming weeks. The financial performances of these companies and their various "confident" statements are in sharp contrast to the previous few quarters - previously, CEOs were retracting expectations for the upcoming year and emphasizing uncertainties brought about by trade, tariffs, and consumer behavior in earnings calls. Over the past approximately 10 months, companies' strategy has been to lower investor expectations: if the worst economic scenario (or the strictest trade threats from Trump) becomes a reality, lower financial expectations would be easier to achieve, or even surpass. Now, companies are benefiting from this strategy, with some stocks reaching historic highs. "Shorting this market is not easy because it feels like this rally will never end," commented Thomas Thornton. Thornton is the founder of hedge fund data company Hedge Fund Telemetry, currently holding a small net-short position on the S&P 500 Index and the Nasdaq 100 index. He further remarked, "Getting beaten up by the markets every day is both painful and frustrating."