US STOCKS-Strong data, earnings keep S&P 500, Nasdaq at record levels

By Pranav Kashyap and Nikhil Sharma

July 18 (Reuters) - The S&P 500 and the Nasdaq edged to another all-time high on Friday, building on the previous day's record run as strong economic data and earnings reports painted a picture of a resilient U.S. economy.

The University of Michigan's Consumer Sentiment Index rose to 61.8 this month from a final reading of 60.7 in June.

Economists polled by Reuters had forecast the index rising to 61.5.

At 10:01 a.m. ET, the Dow Jones Industrial Average .DJI fell 39.49 points, or 0.09%, to 44,445.00, the S&P 500 .SPX gained 13.97 points, or 0.22%, to 6,311.33 and the Nasdaq Composite .IXIC gained 52.84 points, or 0.25%, to 20,938.49.

On Thursday, the two indexes ended at record levels, thanks to upbeat retail sales and jobless claims, signaling a healthy U.S. economy and giving the Federal Reserve room to pause and watch for tariff-driven inflation.

Ten of 11 S&P sectors were on the rise, led by utilities .SPLRCU, which jumped 1.7% to an all-time high. Meanwhile, Tesla TSLA.O shares jumped 3.4% to boost the main index.

Netflix NFLX.O dropped 4.5% despite the success of "Squid Game" helping it surpass earnings forecasts. The streaming giants also lifted its annual revenue outlook.

Similarly, American Express AXP.N outpaced second-quarter profit estimates, buoyed by strong spending from its affluent cardholders. However, its shares were down 2.6%.

Brokerage firm Charles Schwab SCHW.N gained 3.4% after its profit rose nearly 60% in the second quarter.

The S&P 500 and the Nasdaq were on track to end the week on a positive note, while the Dow looked largely flat for the week so far.

With the August 1 tariff deadline looming, uncertainty over President Donald Trump's trade policy also lingered in the background.

Adding to the jitters, reports of a possible ouster of Fed Chair Jerome Powell briefly rattled markets, though Trump was quick to shoot down those reports.

Amid growing criticism by Trump of Powell over the reluctance to cut interest rates, Fed Governor Chris Waller said he would accept the job as Fed chair if asked by the president.

"It's a bit of everything. Mixed economic data, tariffs, Trump criticizing Powell creating a bit of confusion and therefore a lack of direction in markets," said Daniela Hathorn, senior market analyst at Capital.com.

Against this backdrop, traders now see a 56% chance of a Federal Reserve rate cut in September, while a July move is all but off the table, according to CME’s FedWatch tool.

As the second-quarter earnings season gets underway, early results from 59 S&P 500 companies that reported showed more than 81.4% have topped Wall Street's earnings expectations, according to LSEG I/B/E/S data.

Cryptocurrency stocks rose after the U.S. House of Representatives passed a bill that would develop a regulatory framework for cryptocurrencies.

Robinhood Markets HOOD.O and Coinbase Global COIN.O gained 4.7% and 6.4%, respectively.

Chevron CVX.N closed its $55 billion acquisition of Hess HES.N after winning a landmark legal battle against larger rival Exxon Mobil XOM.N. Hess jumped 7.6% in early trading.

Advancing issues outnumbered decliners by a 2.52-to-1 ratio on the NYSE, and by a 1.9-to-1 ratio on the Nasdaq.

The S&P 500 posted 36 new 52-week highs and three new lows, while the Nasdaq Composite recorded 74 new highs and 17 new lows.