[ad_1]
Here are five things you need to know for Monday, July 12:
1. – Stock Futures Mixed Before Earnings Season
Stock futures traded mixed on Monday as Wall Street braced for what is expected to be a strong earnings season, especially for major US banks as the economy improves.
Dow Jones Industrial Average contracts fell 116 points, S&P 500 futures fell 7 points, and Nasdaq futures rose 29 points.
The three major stock indexes closed at record highs on Friday as concerns over the spread of COVID-19 variants and their impact on global growth eased. The S&P 500 has closed at a record high 38 times this year.
The Dow Jones rose 0.2% last week and the S&P 500 and Nasdaq each added 0.4%.
“Peak growth, high valuations, lower yields and concerns about variants, we had a lot of scary headlines last week,” said Ryan Detrick, chief market strategist for LPL Financial.
“Yet in the end, stocks still closed the week at new highs. With the earnings season kicking off… the bar is set pretty high and US companies had better produce another stellar quarter or there could be disappointed bulls, ”he added. .
Analysts polled by FactSet expect S&P 500 company profits to rise 64% in the second quarter from the same quarter in 2020, a time when business activity was significantly slowed by the coronavirus pandemic. It would be the strongest growth in more than a decade.
The yield of the benchmark 10-year Treasury index slipped to 1.334% on Monday morning.
2. – This week’s calendar: testimony from Jerome Powell, banking earnings
The economic calendar in the United States on Monday is bare, but data will be released later in the week on consumer prices, producer prices, jobless claims, regional manufacturing, industrial production and sales in the United States. detail.
Federal Reserve Chairman Jerome Powell will make his semi-annual appearance before Congress on Wednesday and Thursday.
Q2 earnings season kicks off Tuesday with reports from JPMorgan Chase (JPM) – Get a report, PepsiCo (DYNAMISM) – Get a report, Goldman Sachs (SG) – Get a report and the Conagra brands (CAG) – Get a report.
Reports are expected later in the week from Wells Fargo (WFC) – Get a report, Bank of America (BAC) – Get a report, Citigroup (VS) – Get a report, Black rock (BLACK) – Get a report, Delta Airlines (OF) – Get a report, Morgan Stanley (MRS) – Get a report, Charles Schwab (SCHW) – Get a report, US Bancorp (Usb) – Get a report, UnitedHealth (A H) – Get a report and semiconductor manufacturing in Taiwan (TSM) – Get a report.
4 Things Jim Cramer Wants To Hear When Big Banks Report Profits
Wells Fargo Trading Close to Key Support and Ahead of Profits
Wells Fargo is an interest in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells WFC? Find out more now.
3. – Virgin Galactic’s Richard Branson flies to the edge of space
Virgin Galactic’s (SPCE) – Get a report Richard Branson and a five-person flight crew conducted an edge-to-space test flight on the company’s VSS Unity spacecraft on Sunday.
Billionaire Branson and his crew departed from Virgin Galactic’s Spaceport America launch site outside Truth or Consequences, NM, at 8:40 a.m. local time and returned at 9:38 a.m. after a mission to test the private astronaut experience and assess the customer’s commercial booth environment and conditions.
Virgin Galactic plans to launch space tourism trips next year.
The space plane reached an altitude of about 282,000 feet or 53 miles above Earth. It traveled at Mach 3 or about 2,300 mph, three times the speed of sound.
“I don’t know what’s going to come out of my mouth because I feel like I’m still in space,” Branson said at a post-flight press conference.
He added that “99.99% were beyond my wildest dreams. “
The spaceplane returned unharmed with no mechanical issues on the first inspection, according to Mike Moses, president of space missions and security for Virgin Galactic.
Branson’s Virgin Galactic flight beat rival billionaire and Amazon (AMZN) – Get a report founder Jeff Bezos in the space of nine days. Bezos aerospace company, Blue origin, plans to launch its private space capsule into space on July 20.
Virgin Galactic shares rose 8.07% to $ 53.17 in pre-market on Monday.
4. – Elon Musk will testify in court about the purchase of SolarCity by Tesla
You’re here (TSLA) – Get a report shares rose more than 1% on Monday morning before CEO Elon Musk testified in a lawsuit over the company’s takeover of SolarCity in 2016.
The two-week trial, which will take place in the Wilmington, Delaware Court of Chancellery, will pit Musk against pension funds and asset managers who claim the billionaire used his control over Tesla to force the company to save. solar panel maker SolarCity, Musk’s investment in the business after bankruptcy.
Union pension funds and asset managers running the case want Musk to reimburse Tesla for the cost of the $ 2.6 billion deal and return the profits on his SolarCity stock. If they win it would be one of the biggest judgments against an individual.
Wedbush analyst Dan Ives called the acquisition a “clear black eye” for Musk and Tesla, in large part because SolarCity has remained unprofitable.
“It was basically about putting the good money after the bad,” Ives said. “For all the successes and unimaginable heights that Musk has reached, this is one of the weak spots.”
The stock gained 1.12% to $ 664.30 in pre-market.
5. – Memes stocks: Sgoco jumps, AMC declines
AMC Entertainment, stock favorite of memes (AMC) – Get a report fell almost 2% and GameStop (GME) – Get a report, the stock meme, fell slightly on Monday in pre-market.
But others, like Sgoco (SGOC) – Get a report, a Hong Kong-based conglomerate of various companies, was soaring by more than 53%, and Carver Bancorp (CARV) – Get a report increased 16%, adding to gains of 170% over the past three sessions. Shares rose sharply amid touts from retail traders on Reddit and StockTwits.
Meme stocks like GameStop and AMC reflect the reality of the market
[ad_2]
Source link