Dow Jones Futures Await Fed Chief Powell As Inflation Report Hits Market Rally; Apple, Microsoft Lead But ARK ETFs Offer Warning


Investor's Business Daily 13 July, 2021 - 09:37pm 29 views

Stock market news live updates: Stocks end lower to pull back from record levels as inflation jitters rise, earnings come in mixed

Yahoo Finance 13 July, 2021 - 03:05pm

The S&P 500 briefly touched a record intraday high before dipping into the red. The Dow and Nasdaq also declined. 

The choppiness came after a hotter-than-expected print on consumer price inflation Tuesday morning. The Labor Department's headline consumer price index rose 0.9% in June over the prior month, unexpectedly accelerating from May's 0.6% rise. Over last year, the CPI was up 5.4%, also exceeding the 4.9% increase expected and coming in at the fastest pace since 2008. And excluding more volatile food and energy prices, CPI was up 4.5% in June over last month, comprising the biggest jump since 1991 as prices bounced off last year's pandemic-depressed lows.

Earnings out Tuesday morning, meanwhile, were mixed. PepsiCo (PEP) shares gained in early trading after the food and beverage giant delivered a strong earnings beat and raised its outlook for the full year. Meanwhile, JPMorgan Chase (JPM) posted mixed results that sent the stock lower, with weaker-than-expected fixed income sales and trading revenue and managed net interest income overshadowing a better-than-expected overall adjusted revenue and earnings per share. 

S&P 500 earnings in aggregate are expected to grow by 64% for the second quarter, which would mark the fastest increase since the fourth quarter of 2009, according to FactSet data. Bank earnings especially were expected to show strength, buoyed by a wave of reopenings during the April through June quarter and an equity market trading at all-time highs. 

The pace of growth for the second half of the year will be closely watched in company guidance, given the potential for a deceleration after an initial reopening surge. And with input costs rising and labor scarcities still weighing on the economy and pushing inflation higher, margins across industries will also be closely in focus. 

"If this idea happens and inflation rises, that's actually a very good thing for your banks," Courtney Dominguez Payne Capital Management senior wealth advisor, told Yahoo Finance. "So I think that can be a really good way of playing this going forward, where you want to look at companies that are going to benefit from either interest rates rising or who have just some pricing power here, that they are able to raise their costs effectively for their consumers and continue to make that money going forward."

Here were the main moves in markets as of 4:02 p.m. ET:

S&P 500 (^GSPC): -15.35 (-0.35%) to 4,369.28

Dow (^DJI): -106.93 (-0.31%) to 34,889.25

Nasdaq (^IXIC): -55.59 (-0.38%) to 14,677.65

Crude (CL=F): +$1.21 (+1.63%) to $75.31 a barrel

Gold (GC=F): +$1.80 (+0.10%) to $1,807.70 per ounce

10-year Treasury (^TNX): +5.2 bps to yield 1.4150%

A choppy session continued Tuesday afternoon as the S&P 500 erased earlier record-setting gains to turn negative. The information technology, consumer staples and communication services sectors outperformed despite the drop in the broader index, while the financials, real estate and materials sectors lagged. 

In the Dow, Boeing and JPMorgan Chase were the laggards, with the latter stock reversing course after a strong rise on Monday. Apple and Microsoft were the two best-performers, however, as growth and technology shares were bid higher. 

With markets at record levels, equity traders have already priced in much of the good news around corporate profit growth for the second quarter, according to at least one pundit. 

"The earnings cycle has been jaw-dropping, historic, unprecedented. But it's also largely behind us, and the equity market largely reflects it. We've seen a boom in equity prices over the last year plus, almost like we've never seen before," Michael Darda, MKM Partners chief economist, told Yahoo Finance. "So I think the discussion going forward is, what is propping up equity prices: The earnings story for sure, high liquidity and low discount rates. So the threats to the market going forward would be that one of those three legs of the stool ends up getting kicked out." 

"I would warn against the areas that have been recently outperforming that carry quite high valuations — an incredibly dangerous place to be at the moment," he added. 

One of the biggest questions facing investors following a massive reopening surge has been how quickly economic and corporate profit growth rates will moderate. According to at least one strategist, growth is set to continue, but a pullback in the pace of these expansions is inevitable. 

"I do think we're facing not peak growth in level terms but peak growth rate — both for the economy and earnings," Liz Ann Sonders, Schwab Center for Financial Research chief investment strategist, told Yahoo Finance. "And that's just simply the base effects from the second quarter of last year. And I think CEO confidence, which is highly correlated to corporate profitability, is tied t o that, given that Refinitiv expectations has second quarter year-over-year earnings growth for the S&P now approaching 70%. But the likelihood is that the peak is there." 

The S&P 500 crossed a major milestone this week, rising more than 100% from its pandemic-era low of 2,191.86 from March 23, 2020.

At its then-record high of 4,386.68 on Monday, the index had doubled its level from that low. The S&P 500 is also is still up about 16.7% for the year-to-date, and added to that level to touch a new high on Tuesday.

Here's where markets were trading after the opening bell on Tuesday: 

S&P 500 (^GSPC): -6.87 (-0.16%) to 4,377.76

Dow (^DJI): -28.48 (-0.08%) to 34,967.70

Nasdaq (^IXIC): -20.01 (-0.14%) to 14,709.58

Crude (CL=F): +$0.09 (+0.12%) to $74.19 a barrel

Gold (GC=F): +$2.70 (+0.15%) to $1,808.60 per ounce

10-year Treasury (^TNX): -0.4 bps to yield 1.358%

The Labor Department's June consumer price index (CPI) increased at a faster-than-expected rate both over last month and last year, with price increases getting exacerbated by persistent supply chain disruptions and labor scarcities during the pandemic. 

Headline consumer prices rose 0.9% in June over May, accelerating from May's 0.6% monthly increase and coming in faster than the 0.5% monthly rise consensus economists were expecting, according to Bloomberg data. Over last year, CPI rose 5.4% versus the 4.9% increase anticipated, marking the biggest rise since 2008.

Much of the rise in CPI came as used car prices climbed further, with these. gaining 10.5% in June to account for more than one-third of the total rise. Indices tracking food and energy prices also gained by 0.8% and 1.5%, respectively. 

The core consumer price index, which excludes food and energy prices, rose 4.5% over last year in June, also beating estimates for a 4.0% increase. This marked the fastest rise since 1991.

Goldman Sachs (GS) posted results that mirrored those of peer big bank JPMorgan Chase, topping consensus estimates overall on the top and bottom lines, but missing expectations on closely watched trading results.

The bank's net revenue of $15.39 billion grew 16% over last year and beat estimates for $12.43 billion, according to Bloomberg consensus data. Earnings per share of $15.02 were also well above the $10.15 expected. Net interest income, derived from the bank's core lending business, grew 73% over last year to $1.63 billion.

Beneath the headline results, however, some business areas performed less strongly. Trading revenue overall was down 32% to $4.9 billion, missing estimates for $5.02 billion. Fixed income trade revenues led the drop, with these plummeting 45% over last year to $2.32 billion. Equity sales and trading revenue also fell over last year by 12% to $2.58 billion, though this topped estimates. Investment banking revenue was a strong spot amid a busy IPO period earlier this year, growing 26% to $3.45 billion. And consumer and wealth management sales were $1.75 billion in the second quarter for a rise of 28% over last year.

“Our second quarter performance and record revenues for the first half of the year demonstrate the strength of our client franchise and our continued progress on our strategic priorities," CEO David Solomon said in a statement. "While the economic recovery is underway, our clients and communities still face challenges in overcoming the pandemic. But, as always, I am proud of the dedication and resilience of our people, who have worked tirelessly to help our clients navigate the ever-changing market environment.”

JPMorgan Chase kicked off big bank earnings on a mixed note Tuesday morning, posting overall quarterly sales and profits that topped estimates while key business segments came in slightly short of consensus expectations. Still, CEO Jamie Dimon struck an upbeat tone on the health of consumer spending in the recovering economy, noting, "Consumer and wholesale balance sheets remain exceptionally strong as the economic outlook continues to improve."

The largest U.S. bank by assets posted earnings per share of $3.78, topping estimates for $3.15, according to Bloomberg consensus data. Likewise, adjusted revenue of $31.4 billion was better than the $30.06 billion anticipated. 

The company's lucrative fixed income sales and trading revenue fell 44% over last year to $4.10 billion, or just a tick below the $4.12 billion anticipated. Equity sales and trading revenue still grew 13% over last year to an estimates-topping $2.69 billion, however, with a market rally to all-time highs during the quarter helping boost results. And in terms of bottom-line results, managed net interest income of $12.85 billion was also down 8% and missed estimates.

Here's where markets were trading Monday evening:

S&P 500 futures (ES=F): 4,376.50, unchanged 

Dow futures (YM=F): 34,887.00, +12 points (+0.03%)

Nasdaq futures (NQ=F): 14,877.5, +8.25 points (+0.06%)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

Stock futures opened near the flat line Tuesday evening as investors looked ahead to more corporate earnings results and another batch of inflation data.

(Bloomberg) -- Stocks retreated from record highs and bond yields rose as investors debated whether the Federal Reserve risks letting inflation get out of hand.Yields climbed for a third day after the Treasury Department sold $24 billion in 30-year bonds at levels higher than just before its bidding deadline. The benchmark S&P 500 fell for the first time in three trading sessions with JPMorgan Chase & Co. and Goldman Sachs Group Inc. reporting mixed results as second-quarter earnings season gets

U.S. stocks traded mixed on Monday as investors awaited signs of a further rebound in corporate profits with the start of second-quarter earnings season this week.

Johnson & Johnson’s COVID-19 vaccine may pose a “small possible risk” of a rare but potentially dangerous neurological reaction, U.S. health officials said Monday. The Centers for Disease Control and Prevention said in a statement it has received reports of 100 people who got the shot developing Guillain-Barré syndrome, an immune system disorder that can cause muscle weakness and occasionally paralysis. Most cases of the side effect were reported in men — many 50 years old and up — and usually about two weeks after vaccination.

German fashion house Hugo Boss said on Tuesday it expects its revenue to grow by 30% to 35% this year as customers return to shops with the lifting of COVID-19 lockdowns. Severely impacted by the pandemic, Hugo Boss has focused on expanding its ecommerce business as well as shifting toward casual clothing as customers switched suits and ties for tracksuits when forced to work from home. "Despite the persisting uncertainties regarding the further development of the pandemic, Hugo Boss is confident that the company's overall business recovery will continue in the second half of 2021", the company said, adding that it expects earnings before interest and tax (EBIT) in 2021 of 125 million to 175 million euros.

The Dow Jones Industrial Average traded lower in today's market. Meanwhile, the S&P 500 also closed lower after moving off intraday highs.

The CPI inflation numbers seemed strong, but they didn't answer all the questions the consumers, investors, and the Fed have about what is going on in the economy.

(Bloomberg) -- The Treasury yield curve was subject to notable volatility Tuesday. Weak demand for the monthly 30-year bond auction unleashed a bout of steepening that reversed a flattening move spurred by hot June inflation readings.As the consumer price index data emboldened traders to bet that the Federal Reserve will tighten policy in early 2023, spurring five-year yields higher, the gap with 30-year yields narrowed to less than 114 basis points, approaching the slimmest levels of 2021, reac

(Reuters) -American Airlines said on Tuesday it expects positive cash flow in the second quarter for the first time since the pandemic began, reversing a trend of cash burn of about $100 million a day when global travel had ground to a halt. "The improved liquidity is encouraging because it suggests that forward bookings are also strong," Cowen analyst Helane Becker said. U.S. air travel demand has been rising steadily for months as more Americans get vaccinated and travel restrictions ease.

A $1 trillion bipartisan infrastructure deal senators struck with President Joe Biden is at risk of stalling out as Republicans mount stiff resistance over ways to pay for it and momentum shifts to a more robust Democratic proposal coming into focus Tuesday. Biden’s big infrastructure proposals are moving on parallel tracks in Congress in a race against time and political headwinds to make a once-in-a-generation investment in the nation. Senate Majority Leader Chuck Schumer told Democratic colleagues to remain united — “Don't draw any lines in the sand,” he said — as they draft the bigger, multitrillion-dollar package of once-in-a-generation investments for the nation that are the top priority for the president and his party.

Stocks decline a day after major benchmarks clinched another round of records, as investors sift through hotter-than-expected inflation data and parse quarterly results from some of the country's biggest banks, including JPMorgan Chase & Co. and Goldman Sachs Group Inc.

Inflation is starting to really take its toll on the bottom lines of big food makers. So, here comes the price increases.

NEW YORK/LONDON (Reuters) -Bond yields jumped and global share prices slipped after posting new highs on Tuesday as the biggest hike in U.S. inflation in 13 years rattled investors who fear rising interest rates could end a stock market rally that has doubled prices from 2020 lows. The yield on U.S. Treasury debt initially fell on news the U.S. consumer price index in June jumped 5.4% year over year, the largest gain since August 2008, the Labor Department said. But a weak Treasury auction sparked a 4.7-basis-point jump in the benchmark 10-year note to 1.41% after initially falling to 1.343% after the CPI data was released.

After several tireless days we have finished crunching the numbers from nearly 900 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of March 31st. The results of that effort will be put on display in this article, as […]

The S&P 500 and Nasdaq ended lower on Tuesday after hitting record highs earlier in the session, with investors digesting a jump in consumer prices in June and earnings from JPMorgan and Goldman Sachs that kicked off the quarterly reporting season. The S&P 500 and Nasdaq reached fresh record highs but quickly fell into negative territory after an auction of 30-year Treasuries showed less demand than some investors expected and pushed yields higher. Data indicated U.S. consumer prices rose by the most in 13 years last month, while so-called core consumer prices surged 4.5% year over year, the largest rise since November 1991.

In this article, we will be looking at the 10 best stocks under $10 to buy right now. If you want to skip our detailed analysis on these companies, you can go directly to the 5 Best Stocks Under $10 to Buy Right Now. Investing in cheap stocks can lead to financial success given that […]

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Shares of ChargePoint (NYSE: CHPT) crashed today, down by 10% as of 3:30 p.m. EDT, after the company announced it is conducting a secondary offering. The news comes just a few months after ChargePoint completed its merger with a special purpose acquisition company (SPAC). The secondary offering is being launched in order for existing shareholders, primarily early venture capital (VC) funds, to sell stock in an orderly fashion.

Opening Bell: Markets Wobble Ahead Of Inflation Data, Earnings; Oil Advances | 13 July, 2021 - 09:09am

US futures contracts on the Dow, S&P, NASDAQ and Russell 2000, along with European shares, were all in a holding pattern on Tuesday as trade was muted ahead of key economic US data releases and the start of US earnings season.

Having pushed higher over the last two weeks, gold slipped lower.

Contracts on the Russell 2000—whose listed small cap firms would perhaps gain the most in a post-pandemic world and are therefore the focus of the reflation trade—underperformed, falling 0.2% into negative territory. On the other side of the cyclical spectrum, NASDAQ 100 futures, whose mega tech companies gained the most during the coronavirus lockdowns, outperformed and are 0.3% in the green.

All eyes are firmly fixed on second-quarter earnings season which starts with reports from the banks and PepsiCo (NASDAQ:PEP) today, an apt pairing as investors will likely work up a sweat in an overactive market.

The start of earnings season could be a catalyst for considerable volatility with the backdrop of rising inflation and a resurgence of the coronavirus. Traders will be looking for indications that companies can continue to profit in this environment as well as whether to buy into the Fed’s recurring promise, since the start of the year, that the current level of inflation is transitory.

Banks are sensitive to inflation and may provide an indication on inflation’s trajectory. CPI figures are released later today and core CPI is expected to surge to 4%, its highest level since 1991.

Nevertheless, investors, it seems, are choosing to follow the Fed’s lead as is manifested in their trading of Treasuries, including the 10-year benchmark note.

Yields are hanging by a thread, at the 200 DMA, after topping out. Even if rates climb further, such a move should be viewed as a corrective rally before a downward resumption along the falling channel turns steeper.

Former US Treasury Secretary Lawrence Summers disagrees with the Fed's downplaying of inflation fears. He warned that markets may be underestimating the threat of inflation and pointed out that they have a bad track record of predicting future price moves.

It seems that consumers, generally considered to be “dumb money,” disagree with institutions, sometimes dubbed “smart money,” perhaps because consumers are less attentive to the Fed than money managers. Consumers foresee inflation surging to 4.8%, the highest expectation on record for data that goes back to 2003, according to the New York Fed's survey of consumer expectations.

What does that mean for banks? Well, higher interest rates means banks can charge higher interest for loans, thus boosting profits on their business mainstay. Overall, banks have had a year where all the stars have been aligned. The pandemic led to record levels of savings and deposits, keeping banks swimming in money and helping them to pass all the Fed’s stress tests, thereby allowing them to increase share buybacks as well as dividend payouts. Today’s Q2 results from JPMorgan (NYSE:JPM) and Goldman Sachs (NYSE:GS) will show how this has translated into earnings.

How fortunate too that the Bank of England removed restrictions on dividends, boosting the share prices of HSBC (NYSE:HSBC), Barclays (NYSE:BCS) and Natwest (NYSE:NWG).

While investors have been waiting for today's key inflation data and bank earnings releases they have traded sectors including the inflation-neutral Healthcare sector, which was slightly higher.

But investor optimism as well as expectations that Q2 earnings will be strong has pushed US equities to additional all-time highs as traders seem to think that profits support lofty equity valuations. The NASDAQ and Dow notched fresh records while the S&P 500 posted its 39th record close of 2021.

Financials rose 1% demonstrating faith in banks’ earnings, in a day that was a win for value stocks, while Technology stocks languished with gains of under 0.08%.

The dollar climbed for the second day, while gold took a step back after one of its strongest rallies in a while.

Bitcoin was little changed.

Oil returned to a rally after yesterday’s hiccup, trading at its highest level since July 5, when prices reached 2014 levels.

Traders might get impatient if OPEC+ doesn’t reach an agreement soon at the same time as the pandemic is keeping some economies in lockdown, and potentially slowing growth in China, the world’s largest importer of the commodity.

If WTI traders get too nervous, they may sell off, triggering a H&S top.

(Tuesday Market Open) As a comedian once said, “And away we go!” Earnings season kicked off today with a bang as both JP Morgan (NYSE:JPM) and Goldman Sachs (NYSE:GS)...

Earnings optimism drives US equities to fresh record highs ahead of bank resultsRisk appetite still shaky in FX markets, dollar and yen resist deeper selloffUS inflation data and...

China’s trade data has outperformed this morning, showing no evidence of wilting under rising prices, supply disruptions, virus restrictions or any other excuse you wish to...

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Stocks slip off records as hot inflation overshadows strong bank earnings

Fox Business 13 July, 2021 - 06:58am

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Vining Sparks Director of Bank Advisory Marty Mosby provides insight into JPMorgan Chase posting stronger-than-expected second quarter earnings.

U.S. stock markets closed modestly lower Tuesday as investors weighed the hottest inflation reading in over a decade against strong earnings from Wall Street banks. 

The Dow Jones Industrial Average fell 107 points, or 0.31%, while the S&P 500 and the Nasdaq Composite lost 0.35% and 0.38%, respectively. All three of the major averages finished at all-time highs on Monday. 

Consumer prices rose 0.9% month over month in June and 5.4% annually, the Labor Department said Tuesday. Both readings showed the fastest price growth since August 2008. Core prices, which exclude food and energy, also increased 0.9% last month while the 4.5% annual increase was the largest since November 1991.   

The bond market saw little reaction to the hot inflation data, but came under pressure after the tepid 30-year bond auction. Post-auction selling caused the benchmark 10-year yield to finish higher by X basis points at X%. 

On Wall Street, JPMorgan Chase & Co. reported earnings and revenue that exceeded estimates, boosted by dealmaking and the release of reserves set aside to protect against COVID-19-related losses. Slowing loan growth was seen as a worry among investors. 

Dealmaking and a strong initial public offering market also helped Goldman Sachs Group Inc. blow past analyst expectations. The firm's investment banking division generated $3.61 billion in revenue, the second most of all time.     

Elsewhere in earnings, PepsiCo beat on both the top and bottom lines and raised its profit forecast as sales surged 20% from a year ago as the reopening of restaurants improved demand for soft drinks. Organic revenue rose across all divisions except for Quaker Food North America, which was the weakest business segment prior to the pandemic.

Meanwhile, Dow component Boeing Co. said it would deliver less than half of the 787 Dreamliner jets produced but not yet sent to clients due to a defect that was found on some of the wide-body jets. The majority of the aircraft’s cost is paid at delivery, meaning the delays could put further strain on Boeing, which is still navigating the financial burden of the 737 Max grounding and the impact of the COVID-19 pandemic. 

Tesla CEO Elon Musk will testify for a second day on Tuesday about the electric-vehicle maker’s $2.6 billion acquisition of Musk’s Solar City in 2016. Tesla shareholders argue the deal had extensive conflicts of interest and didn’t deliver on the profits that were promised.   

In commodities, West Texas Intermediate crude oil ticked up $1.15 to $75.25 a barrel, the highest since October 2018, and gold rose $3.90 to $1,809.40 an ounce. 

Overseas markets were mixed with losses in Europe and gains in Asia. 

In Europe, Britain’s FTSE 100, Germany’s DAX 30 and France’s CAC 40 all slipped 0.01%. 

Asian bourses were higher across the board with Hong Kong’s Hang Seng index climbing 1.63% while China’s Shanghai Composite and Japan’s Nikkei 225 advanced 0.53% and 0.52%, respectively. 

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5 things to know before the stock market opens Tuesday

CNBC 13 July, 2021 - 06:55am

U.S. stock futures turned lower Tuesday as earnings season kicked off and hot inflation data came one day after the Dow Jones Industrial Average, S&P 500 and Nasdaq logged record closes. All the major benchmarks have been on hot streaks, with the Dow up in seven of the past eight sessions, the S&P 500 up in 10 out of 12 sessions, and the Nasdaq higher in eight of the past 10 sessions. The S&P 500 leads the three with a 16.7% year-to-date gain. The Dow and Nasdaq are up about 14.3% for 2021.

The 10-year Treasury yield rose Tuesday, trading at around 1.38%, after going as low as 1.25% last Thursday. The yield move came after the government said its June consumer price index jumped 0.9% on both the headline number and the non-food and energy core reading. Those were nearly double expectations. The year-over-year numbers came in better than expected at up 5.4% on headline CPI, the fastest pace in nearly 13 years; the core rate jumped 4.5%, the sharpest move since September 1991.

Shares of JPMorgan fell nearly 0.2% in Tuesday's premarket, after the bank reported second-quarter profit and revenue that exceeded expectations as the firm released money set aside for loan losses. Borrowers have held up better than expected as the economy continued to pull out of the Covid pandemic tailspin.

Shares of Goldman Sachs rose 1% in premarket trading, after the bank's second-quarter earnings report blew past Wall Street estimates, propelled by strong performance in investment banking during this year's robust IPO market.

PepsiCo shares rose more than 1% in the premarket, after the beverage and snack company reported that its quarterly revenue rose more than 20% from a year earlier as restaurant demand for its drinks returned, fueling an earnings beat. PepsiCo also raised its outlook for its full-year adjusted earnings per share growth. "A lot of the things we did through the pandemic, continuing to invest in the business, are now paying dividends now that mobility has increased and consumers are getting out more," CFO Hugh Johnston said on CNBC's "Squawk Box" on Tuesday.

Boeing shares fell 2% in the premarket after the aircraft maker announced Tuesday morning that it cut its delivery target for its undelivered 787 Dreamliner planes. Boeing said it will temporarily lower production rates after a new defect was detected on some of the wide-body jets. Boeing said it would deliver fewer than half of the Dreamliners that it has already produced but has not yet delivered to customers. CEO Dave Calhoun said at an investor conference last month that the company would deliver the "lion's share" of the roughly 100 Dreamliners in its inventory this year.

The Food and Drug Administration is expected to announce a new warning for Johnson & Johnson's Covid-19 vaccine, saying the shot has been linked to a serious, but rare, autoimmune disorder, The Washington Post reported Monday, citing four unnamed sources. About 100 preliminary reports of Guillain-Barre syndrome have been detected after 12.8 million doses of J&J's one-does vaccine were administered, the Centers for Disease Control and Prevention said in a statement to NBC News. Guillain-Barre is a rare neurological disorder in which the body's immune system mistakenly attacks part of the nervous system.

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E-mini S&P 500 Index (ES) Futures Technical Analysis – Hovering Near Record High Ahead of Bank Earnings

Yahoo Finance 13 July, 2021 - 04:43am

At 09:21 GMT, September E-mini S&P 500 Index futures are trading 4376.50, unchanged for the session.

Investors are turning their attention to banks as they prepare to release their second quarter earnings this week, starting with JPMorgan and Goldman Sachs Tuesday before the opening bell.

Banks are expected to double this quarter, following the 138% earnings growth the sector saw in the first quarter. The S&P 500 broadly is expected to produce its strongest earnings growth since the fourth quarter of 2009.

The main trend is up according to the daily swing chart. A trade through 4379.25 will signal a resumption of the uptrend. A move through 4126.75 will change the main trend to down.

This is highly unlikely, but due to the prolonged move up in terms of price and time, the index is currently inside the window of time for a potentially bearish closing price reversal top. This chart pattern won’t change the main trend to down, but it if confirmed, it could trigger the start of a 2 to 3 day correction.

The minor range is also up. A trade through 4279.25 will change the minor trend to down. This will shift momentum to the downside.

The minor range is 4269.25 to 4379.25. Its 50% level at 4324.25 is the first support.

The short-term range is 4126.75 to 4379.25. If the minor trend changes to down then look for a test of its 50% level at 4253.00.

The main range is 4020.00 to 4379.25. Its retracement zone at 4199.50 to 4157.25 is the key support area and value zone.

The direction of the September E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to 4379.25.

A sustained move over 4379.25 will indicate the presence of buyers. This could trigger an acceleration to the upside since there is not resistance.

A sustained move under 4379.25 will signal the presence of sellers. The first downside target is the minor pivot at 4224.25. Look for an acceleration into 4279.25 to 4269.25 if this pivot fails as support.

Taking out 4379.25 then closing below 4376.50 will form a potentially bearish closing price reversal top.

This article was originally posted on FX Empire

The direction of the September E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to 14712.00.

The S&P 500 initially dipped a bit during electronic trading overnight, but it as New York opened, we started seeing buying yet again.

Shares of ChargePoint (NYSE: CHPT) crashed today, down by 10% as of 3:30 p.m. EDT, after the company announced it is conducting a secondary offering. The news comes just a few months after ChargePoint completed its merger with a special purpose acquisition company (SPAC). The secondary offering is being launched in order for existing shareholders, primarily early venture capital (VC) funds, to sell stock in an orderly fashion.

Extending the 1.3% drop they suffered on Monday, shares of Plug Power (NASDAQ: PLUG) are continuing to slide today. Similar to yesterday, Plug Power didn't report anything on Tuesday that led investors to hit the sell button. Instead, the stock's fall is likely a reaction to the positive news that a noteworthy fuel cell peer shared this morning.

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The Dow Jones fell after a senior Fed official spoke out amid rising inflation fears. Virgin Galactic stock fell hard as AMC stock dipped.

One of history's most successful investors is betting on these stocks -- and neither is a typical Berkshire Hathaway holding.

After racing upward by more than 4% in Monday trading, Tesla (NASDAQ: TSLA) give back half of its stock price gains Tuesday. Plaintiffs in the case allege that CEO Elon Musk put his own financial interests ahead of those of Tesla's shareholders. Meanwhile, Wall Street is still digesting the import of recent pricing moves, and of Tesla's weekend rollout of "FSD v.9.0 Beta," the latest iteration of the software that's supposed to help make Tesla cars autonomous and usher in an age of robo-taxis.

We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always […]

Much of the profit that investors in Sundial Growers (NASDAQ: SNDL) have made over the past year can likely be attributed to speculation and the stock becoming a popular buy on Reddit. Sundial Growers is an underdog in the sector due to its small size and low sales numbers. One of the most important things for investors to consider when looking at marijuana companies is the strength of their financials, and specifically cash.

On the surface, these companies seem like underpriced investments, but look a little closer and there's a good reason to stay away.

Despite being one of the most recognizable wireless carriers in the U.S., AT&T stock has had a rough 2020. But the stock does have some perks. Is it a buy?

Coupang (NYSE: CPNG), the largest e-commerce company in South Korea, went public in March. Can Coupang impress the bulls again and generate millionaire-making gains over the next few years? Coupang was backed by big investors like SoftBank, Sequoia Capital, and BlackRock over the past decade, and their funds supported the expansion of its first-party logistics network across South Korea.

Chinese electric car company NIO (NIO) held its first ever "Power Day" presentation in Shanghai, China on Friday last week, aiming to gin up investor interest in its "charging post, supercharging post, battery swap station [and] mobile charging car" charging services -- as opposed to its core business of, you know, selling electric cars. But while the nominal purpose of the event was to provide information to answer questions that customers and investors might have, in actual fact, NIO's present

Deflation will likely become a larger force in financial markets in the year ahead despite the recent spike in consumer prices to 13-year highs, star stockpicker Cathie Wood of Ark Invest said in a webinar on Tuesday. U.S. consumer prices increased by the most in 13 years in June due in part to supply constraints, the Labor Department said on Tuesday. Wood, whose Ark Innovation ETF was the top-performing U.S. equity fund tracked by Morningstar last year, said technological innovation would continue to push down prices significantly.

Warren Buffett stocks are famous for tight focus. And this year, the famed investor's concentrated play on top S&P 500 stocks is paying off.

S&P 500 Slips From Record as Banks Kickoff Earnings Season; Powell Eyed By 13 July, 2021 - 12:00am – The S&P 500 closed lower Tuesday, as banks fell even as quarterly results surprised to the upside, while data showed inflation continues to run at its hottest pace in decades ahead of Federal Reserve chairman Jerome Powell's testimony on Wednesday.    

The S&P 500 fell 0.3%, after hitting a record high of 4,392.30 earlier in the day. The Dow Jones Industrial Average slipped 0.3%, or 107 points, though had notched a intraday record of 35,018.79. The Nasdaq was down 0.4%, easing from its intraday record of 14,803.70.

JPMorgan Chase & Co (NYSE:JPM) and Goldman Sachs (NYSE:GS) got their quarterly earnings underway, with a beat on both the top and bottom lines. But uncertainty over the outlook for loan demand and the backdrop of weaker U.S. bond yields stoked worries about further growth. 

But financials eased slightly off their the sessions lows of the day thanks to a bounce in bond yields following a 30-year Treasury auction that pointed to signs of soft demand for bonds, pressuring prices, which trade inversely to yields.

“The auction results suggest some discomfort with 30-year yields below 2% and the heavier than average Dealer takedown suggests that there will be more bonds for sale post-auction than usual,” Jefferies (NYSE:JEF) said in a note.

Ahead of the auction U.S. bond yields were on the back foot earlier as investors shrugged off another upside surprise in inflation as transitory.

“The largest year-over-year increase in the headline and core CPI since 2009 and 1991, respectively, much of the uptick in costs continues to reflect a reopening of the economy  apparel, autos, and travel – accounting for the majority of rise,” Stifel said.

The move higher in inflation could be sustained by the reopening of economies globally once the delta coronavirus variant peaks and global vaccinations gather pace. 

“There have been a few fits and starts with what's gone on in Japan with the Delta variant of COVID, but I think that the reopening is real on a global basis, and it should lead to inflation going forward,” Darren Schuringa, CEO of ASYMmetric ETFs said in an interview with on Tuesday.

PepsiCo (NASDAQ:PEP) raised its full-year outlook after delivering earnings and revenue that topped analysts' expectations amid strong quarter of growth from its North American beverage business. 

Boeing (NYSE:BA) fell more than 4% after unveiling a new manufacturing quality flaw in its 737 Dreamliners.    

The sudden move higher in yields, meanwhile, reined in some bullish bets on growth, though gains in Microsoft and Apple kept the downside in check.

Facebook (NASDAQ:FB), Google-parent Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT, Apple (NASDAQ:AAPL), and (NASDAQ:AMZN) traded mixed.

But higher valuations in tech could keep a lid on demand for the sector, particularly against a backdrop of somewhat cheaper cyclicals stocks, which tend to perform well during the early stages of a recovery relative to growth.

“In the early stages of a recovery, value stocks tend to do better,” according to Schuringa. "I think that investors looking to de-risk their portfolio and equity exposure, wouldn’t mind taking some of their tech gains off the table. Hopefully, by investing in companies that haven't had the same run higher [as tech has], investors can lower their downside risk in the portfolio versus increasing it by either holding their positions or adding to them to protect."

The weak end to the day comes ahead of Federal Reserve Chairman Jerome Powell's two-day mandated semiannual testimony on the state of monetary policy. Powell is expected to comment on the strong reopening, though will likely continue to suggest that inflation remains transitory.

"Chair Powell likely will acknowledge the unexpectedly big reopening spike in his Testimony tomorrow, but he won’t be re-writing it. Patience will remain the watchword," Pantheon Macroeconomics said in a note. 

(Reuters) - Electric air taxi startup Joby Aviation, JetBlue Airways (NASDAQ:JBLU) Corp and Signature Flight Support are teaming up to develop aviation carbon credits for using...

By Tom Hals and Sierra Jackson WILMINGTON, Del. (Reuters) -Elon Musk told a judge on Tuesday Tesla (NASDAQ:TSLA) Inc had to buy SolarCity in 2016 because the failing solar panel...

By Cassandra Garrison MEXICO CITY (Reuters) -Mexican telecommunications giant America Movil (NYSE:AMX) reported on Tuesday that its second quarter net profit more than doubled...

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