Good Monday morning traders and investors of the r/stocks sub! Welcome to the new trading week and a frrrrrrrrrrrrrrresh start! Here are your pre-market stock movers & news on this Monday, July 18th, 2022-
Dow futures jump more than 200 points to start week as Goldman earnings top expectations
U.S. stock index futures rose sharply Monday as Goldman Sachs kicked off a busy week of earnings on Wall Street with a report that topped expectations.
Futures contracts tied to the Dow Jones Industrial Average added 286 points, or 0.92%. S&P 500 futures gained 0.84%, while Nasdaq 100 futures advanced 0.99%.
Those moves come as investors anticipate a slew of major earnings this week. Shares of Goldman Sachs popped 3% in the premarket after the investment bank reported an earnings beat on the top and bottom lines. The firm’s fixed income traders generated about $700 million more revenue than expected.
Bank of America reported quarterly revenue that beat analyst expectations, though the stock was down slightly in the premarket. JPMorgan Chase and Morgan Stanley kicked off the season for big banks last week, posting mixed quarterly results.
“We anticipate volatility to remain elevated as the market toggles between pricing recession risk and soft landing probabilities with each piece of data,” Citi’s Scott Chronert said in a recent note.
IBM will post results after the closing bell.
Other major earnings on the docket this week include Johnson & Johnson, Netflix, Lockheed Martin, Tesla, United Airlines, Union Pacific, Verizon and a host of other companies.
Despite the growing recession fears, S&P 500 companies are expected to post a 4.2% increase in second-quarter profit, according to consensus analyst estimates gathered by FactSet. S&P 500 members are also expected to post a 10.2% increase in revenue for the period, according to FactSet.
Profit expectations for the full year are still high with S&P 500 companies estimated to post a 9.9% earnings increase for 2022, estimates collected by FactSet show.
Futures on Monday also got a boost after Boeing shares gained more than 3% on news that Delta Air Lines was buying 100 737 Max 10 planes.
The major averages are coming off a losing week, despite a Friday relief rally that saw the Dow jump more than 650 points. The 30-stock benchmark shed 0.16% on the week. The S&P 500 and Nasdaq Composite fell 0.93% and 1.57%, respectively.
Friday’s relief rally came as traders bet that the Federal Reserve will be less aggressive than feared at its upcoming meeting. The Wall Street Journal reported Sunday that the central bank is on track to lift interest rates by 75 basis points at its meeting later this month. Goldman Sachs chief economist Jan Hatzius also said in an overnight note that he expected the Fed to raise rates by 0.75 percentage point.
Still, it was the second negative week in the last three for all the major averages. Recession fears have been front and center in recent weeks as market participants worry that aggressive action from the Fed — in an effort to tame decades-high inflation — will ultimately tip the economy into a recession.
“Markets are likely to remain volatile in the coming months and trade based on hopes and fears about economic growth and inflation,” Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a recent note to clients.
“A more durable improvement in market sentiment is unlikely until there is a consistent decline both in headline and in core inflation readings to reassure investors that the threat of entrenched price rises is passing,” he added.
A batch of economic data drove last week’s wild market action. Inflation jumped 9.1% in June, a hotter-than-expected reading and the largest increase since 1981. That, in turn, led traders to bet that the Fed could raise rates by a full percentage point at its meeting at the end of July.
By the end of the week, however, some of those fears retreated on the back of a strong retail sales number as well as comments from some Fed officials.
STOCK FUTURES CURRENTLY:
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LAST WEEK'S MARKET MAP:
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TODAY'S MARKET MAP:
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LAST WEEK'S S&P SECTORS:
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TODAY'S S&P SECTORS:
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TODAY'S ECONOMIC CALENDAR:
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THIS WEEK'S ECONOMIC CALENDAR:
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THIS WEEK'S UPCOMING IPO'S:
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EARNINGS CALENDAR FOR THE NEXT 4 WEEKS:
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THIS WEEK'S EARNINGS CALENDAR:
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THIS MORNING'S PRE-MARKET EARNINGS CALENDAR:
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EARNINGS RELEASES BEFORE THE OPEN TODAY:
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EARNINGS RELEASES AFTER THE CLOSE TODAY:
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FRIDAY'S ANALYST UPGRADES/DOWNGRADES:
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FRIDAY'S INSIDER TRADING FILINGS:
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TODAY'S DIVIDEND CALENDAR:
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THIS MORNING'S STOCK NEWS MOVERS:
(source: cnbc.com)
Goldman Sachs (GS) – Goldman gained 2.6% in premarket trading, following upbeat profit and revenue. Second-quarter earnings came in at $7.73 per share, compared to a consensus estimate of $6.58 a share. Goldman’s profit dropped from a year ago, however, as the pace of dealmaking slowed.
STOCK SYMBOLS: GS
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Synchrony Financial (SYF) – The financial services company’s stock rallied 3.5% in the premarket after it reported better-than-expected profit and revenue for the second quarter. Synchrony pointed to upbeat loan growth and credit trends, with the consumers remaining strong.
STOCK SYMBOLS: SYF
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Bank of America (BAC) – Bank of America fell 2 cents a share shy of estimates with quarterly earnings of 73 cents per share, though revenue came in slightly above Wall Street forecasts. Bank of America’s results were impacted by a sharp drop in investment banking revenue. The stock initially fell 1.7% in the premarket but then pared those losses.
STOCK SYMBOLS: BAC
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Twitter (TWTR) – Elon Musk filed a court motion late Friday seeking to deny Twitter’s request for an expedited trial over his move to terminate his $44 billion takeover deal.
STOCK SYMBOLS: TWTR
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Boeing (BA) – Boeing announced that Delta Air Lines (DAL) had ordered 100 Boeing 737 Max jets, and also said that the company was very close to resuming deliveries of its 787 Dreamliner. Boeing jumped 4.2% in premarket trading.
STOCK SYMBOLS: BA
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Seagen (SGEN) – The closing of Merck’s (MRK) $40 billion deal to buy Seagen will be delayed, according to people familiar with the matter who spoke to The Wall Street Journal. The delay stems from a wait for data evaluating a study of a Seagen treatment. The stock slid 2.9% in the premarket.
STOCK SYMBOLS: SGEN
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Starbucks (SBUX) – Starbucks rose 1.% in the premarket after the Sunday Times reported that the coffee chain is exploring a possible sale of its U.K. operations.
STOCK SYMBOLS: SBUX
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GlaxoSmithKline (GSK) – The company formerly known as GlaxoSmithKline completed the spin-off of its consumer health business into a separate company known as Haleon, which contains well-known brands such as Advil and Sensodyne. GSK fell 1.3% in the premarket.
STOCK SYMBOLS: GSK
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Paramount Global (PARA) – The media company’s stock lost 1.8% in premarket trading after Morgan Stanley downgraded it to “underweight” from “equal-weight,” noting the possibility of advertisers and consumers pulling back in a recession scenario.
STOCK SYMBOLS: PARA
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Fresh Del Monte Produce (FDP) – The fruit and vegetable company’s stock rose 2.8% in premarket trading after Bloomberg reported that private-equity firm I Squared Capital is considering a takeover, as one option to expand a partnership agreement struck in 2021.
STOCK SYMBOLS: FDP
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FULL DISCLOSURE:
/u/bigbear0083 has no positions in any stocks mentioned. Reddit, moderators, and the author do not advise making investment decisions based on discussion in these posts. Analysis is not subject to validation and users take action at their own risk.
DISCUSS!
What's on everyone's radar for today's trading day ahead here at r/stocks?
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