Here are the most important news, trends and analysis investors need to start their trading day:
1. S&P 500 Futures Stagnate Despite Strong Bank Profits
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, United States, July 12, 2021.
Brendan McDermid | Reuters
U.S. equity futures were flat on Tuesday as the earnings season kicked off a day after the Dow Jones Industrial Average, S&P 500 and Nasdaq records closed. All major benchmarks have been on hot streaks, with the Dow Jones rising in seven of the past eight sessions, the S&P 500 rising in 10 of 12 sessions and the Nasdaq rising in eight of the past 10 sessions. The S&P 500 leads with a gain of 16.7% year-to-date. The Dow Jones and the Nasdaq are both up 14.3% for 2021.
The 10-year Treasury yield was fairly stable on Tuesday, around 1.36% after falling to 1.25% last Thursday. The government came out with the June Consumer Price Index at 8:30 am ET. Economists expect the latest inflation report to show 0.5% increases in both the headline CPI and figures excluding food and energy. These measures rose 0.6% and 0.7%, respectively, in May.
2. JPMorgan and Goldman Sachs Best Quarterly Earnings Estimate
The headquarters of JP Morgan Chase & Co., the JP Morgan Chase Tower at Park Avenue, Midtown, Manhattan, New York.
Tim Clayton – Corbis | Corbis Sport | Getty Images
JPMorgan shares fell nearly 1% in pre-market on Tuesday, after the bank reported second quarter earnings and earnings that beat expectations as the company released money put aside for loan losses. Borrowers have fared better than expected as the economy continued to retreat from the free fall of the Covid pandemic.
Goldman Sachs shares rose 0.3% in pre-market trading, after the company released second quarter results Tuesday morning that beat Wall Street estimates, propelled by the bank’s strong performance. investment during this year’s strong IPO market.
3. PepsiCo Boosts Forecast After Profits Crush Estimates
Bottles of PepsiCo Inc. brand Pepsi soda on sale at a grocery store in Baghdad, Ky., United States on Friday, April 9, 2021.
Luc Sharrett | Bloomberg | Getty Images
PepsiCo shares rose more than 1% pre-market, after the beverage and snack company reported quarterly revenue increased more than 20% from a year earlier, as demand from restaurants for his drinks having returned, fueling higher profits. PepsiCo also raised its outlook for full-year adjusted earnings per share. “A lot of the things we did during the pandemic, continuing to invest in the business, are now paying dividends now that mobility has increased and consumers are leaving more,” CFO Hugh Johnston said on Tuesday. TBEN’s Squawk Box.
4. Boeing cuts production and delivery targets for the 787 Dreamliner
An employee works in the tail of a Boeing Co. Dreamliner 787 aircraft on the production line at the company’s final assembly plant in North Charleston, South Carolina.
Travis Colombe | Bloomberg | Getty Images
Boeing shares fell 2% in pre-market after the aircraft maker announced Tuesday morning that it was reducing its delivery target for its undelivered 787 Dreamliner. Boeing has said it will temporarily reduce production rates after a new defect is detected on some of the widebody jets. Boeing said it will deliver less than half of the Dreamliners it has already produced but has yet to deliver to customers. CEO Dave Calhoun told an investor conference last month that the company will provide the “lion’s share” of the roughly 100 Dreamliners in its inventory this year.
5. FDA to Announce New J&J Covid Vaccine Warning, Report Says
A health clinician prepares a dose of the Johnson & Johnson coronavirus disease (COVID-19) vaccine for a commuter as the MTA public vaccination program opens at 179th Street subway station in the Queens neighborhood of New York, New York, United States, May 12, 2021.
Shannon Stapleton | Reuters
The Food and Drug Administration is expected to issue a new warning for Johnson & Johnson’s Covid-19 vaccine, saying the vaccine was linked to a serious but rare autoimmune disease, the Washington Post reported on Monday, citing four anonymous sources. About 100 preliminary reports of Guillain-Barre syndrome have been detected after 12.8 million doses of J & J’s single 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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