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Jul 17, 2018 - Market Blog

7/17/2018

 

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Domestic equities (/ES) are indicating modest signs of weakness ahead of the opening bell as investors mull over the latest round of earnings. Yesterday finished with mixed results as the Dow Jones Industrials ($DJI) fought to stay positive at 0.2% higher in contrast to the S&P 500 (SPX) and Nasdaq Composite (COMP) with both on the losing end albeit fractionally. The Tech sector may come under more scrutiny today as Netflix (NFLX) is reeling from its huge miss of nearly 1 million anticipated subscribers. The latest developments may put the tech sector’s 15% YTD gains to the test should any further signs of vulnerability appear within other FAANG names going forward. Amazon (AMZN) will specifically come into play today with Prime Day taking place after early hiccups in yesterday’s launch.    

 

Oil Futures (/CL) are essentially unchanged this morning at $68 a barrel after Monday’s 3.6% snafu to pull energy down by 10% just over the last week.  Concerning data out of China indicating growth slowing to 6.7% along with weaker factory activity over the last month has become the latest scapegoat. Both Asian and European markets have succumbed to general global sluggishness with the exception of the Japanese Nikkei which has jumped 100 points to assert its recent outperformance. 

 

All eyes will be on Chairman Powell’s semi-annual testimony to the Senate Banking Committee starting at 9:00CT with a follow up before the House again tomorrow at the same time.  Markets have priced in an additional two rate hikes into the tail end of the year so any major shift in the narrative would create a ripple effect. Yields on the 10 year treasury have slipped to 2.851% ahead of auctions in both the four week and fifty-two week bills with a combined offering of over $70 Billion. Industrial Production will be looking to return positive this morning just ahead of the opening bell with a 0.5% forecast to right the ship after a surprising -0.1% setback in mid-June. Earnings will continue to heat up with CSX (CSX) and United Airlines (UAL) on deck after market close. 

 

 Stock Stories:

Johnson and Johnson (JNJ) – No Tears – The far-reaching health company posted adjusted earnings of $2.10 a share this morning off $20.8 Billion in revenue which was good enough for a 10% jump y/y.  A slight revise downward in future guidance forced investors to take pause  but the stock has recovered into positive territory pre-market.  A judge recently ruled in favor of a $4.69 Billion settlement over their talc-based powder proven to cause cancer  which the company has vowed to appeal. Overall JNJ is lower by 11% YTD since reaching $148.32 in mid-January. 

 

Major Economic Reports:

 

7:55 am CT – Redbook

8:15 am CT – Industrial Production

9:00 am CT – Housing Market Index

9:00 am CT – FOMC Chairman Powell Testimony

3:00 pm CT – TIC Long Term Purchases 

  

Notable Earnings:   

 

Tuesday – 7/17:   

 

Before Market:   GS, JNJ, SCHW, UNH

After Market:  CSX, UAL

   

Wednesday – 7/18:

 

Before Market:  ABT, GWW, MS, USB

After Market:  AA, AXP, EBAY, IBM

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com.

 

Join the other recipients and help provide some feedback on our daily market blog by sending an e-mail to support@tradewise.com. Your suggestions are important to us in providing the highest quality service.

Jul 16, 2018 - Market Blog

7/16/2018

 

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U.S. equity markets posted a weekly gain as earnings  and economic results trumped trade fears to push markets higher.  The only pullback came on Wednesday, after the White House proposed a fresh round of tariffs on $200 billion of Chinese goods which sent the S&P 500 (SPX) 0.7% lower on Wednesday.  The next two days saw stocks rise 1.0% , erasing and gaining ground on the mid-week slip.     J.P. Morgan Chase (JPM) and Citigroup (C) reported second quarter earnings results on Friday that beat analysts’ expectations.  Fears of declining loan demand and profits have sent JPM and  C down 8% and 13% since the end of January.    The results did not validate those fears with both banks displaying strong loan demand.     With Friday being the lowest full day volume day this year for stocks, three of the major indices managed to end up on the day.  The S&P 500 (SPX) gained 0.1% to 2801.31, Nasdaq Composite (COMP) rose to a fresh high of 7825.98, and the Dow Jones Industrials ($DJI) advanced 0.4% to 25019.41.      

 

U.S. crude oil futures (/CL) are over 2% lower this morning, and trading near $69 a barrel.  Traders are anticipating  the upcoming meeting between Trump and Putin could result in Russia agreeing to further increases in oil production.  The yield on 10yr. Treasury notes (TNX) was little changed on the week, with Friday’s settlement coming in at 2.831%. 

 

June Retail Sales numbers were released this morning at 7:30 am CT.  The results showed a 0.5% rise versus estimates of a 0.6% rise.  In addition, May figures were revised to +1.3% from +0.8%.  As of this writing, S&P 500 futures (/ES) are slightly lower and trading near 2802.  30yr. Treasury bond futures are 0.15% lower and are trading near 145’15.

  

Stock Stories:

Bank of America (BAC) –Bank Beat –The second  largest U.S. lender by assets,  released their quarterly earnings results  before the opening bell.   Earnings per share were better than expected at $0.63 versus analyst estimates of $0.57.  Revenues fell slightly to $22.609 billion, but above estimates of $22.286 billion.  Trading revenue rose 7% versus last year, coming in at $3.569 billion for the second quarter.  Investors are reacting by lifting the shares by 0.7% to $28.75.

 

Major Economic Reports:

7:30 am CT – Retail Sales

7:30 am CT – Empire State Manufacturing Index

9:00 am CT – Business Inventories

  

Notable Earnings:   

 

Monday – 7/16:

Before Market:  BAC, BLK

After Market:     NFLX

   

Tuesday – 7/17:

Before Market:  GS, JNJ, SCHW,  UNH

After Market:     CSX,  UAL

 

 *Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

 

Join the other recipients and help provide some feedback on our daily market blog by sending an e-mail 

Showing Week of Jul 09, 2018

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Jul 15, 2018 - Weekend Market Update

TradeWise – Weekend Update

July 15, 2018

 

S&P 500 (SPX) shares cruised to fresh 4 mo. highs on Friday after just piercing a $2800 resistance level to inch back within 2.5% of all-time highs etched back in late January. Year-to-date, the benchmark has progressed by 4.8% despite the gap left from the lackluster financials sector as of late considering Friday's mixed earnings results. The more exclusive Dow Jones Industrial Average ($DJI) tacked on an impressive 2.3% for the previous five days with industrials and consumer staples both heating up. Tech continues to steer the broad markets higher with the Nasdaq Composite (COMP) cracking a fresh high of 7825-enough for a 1.8% jump over the same period.  Overall, Friday saw some of its lowest volumes for the entire year so far as traders are likely awaiting earnings data from the sidelines.  

 

The CBOE Volatility Index (VIX) came in another 3% on Friday to finish out the week just over the $12 handle with a general absence of Chinese tariff jargon since earlier in the week. Trump’s attention shifted to his European tour with NATO, Great Britain, and Russia in his sights. Crude finished Friday on a 1% uptick, but still suffered its 2nd straight week of declines at $71. The weekly rig count remained fixed at 863 domestic platforms with the administration flirting with the idea of potentially tapping into government reserves in an attempt to ease the recent price surge.  Any suggestive economic slowdown from the face-off with China could also drag energy prices lower on an adjustment around demand.  Gold prices (/GC) happened to slip to a seven month low at the tail end of the week while the U.S. dollar grinds towards July highs in direct response to the recently revealed record surplus of Chinese exports.  Overall, the precious metal has lost 10% of its value just over the last 90  days with the competing 10 year yield also holding steady at 2.82%. 

 

The upcoming week will start out by examining the overall vitality of retail sales on Monday in direct follow-up to Friday’s downbeat consumer sentiment report swooping to six month lows.  Geopolitical developments may also play a crucial role with Trump preparing to meet with Russian President Putin in Helsinki tomorrow with no concrete agenda. Further rhetoric around the general dysfunction of NATO can also become a catalyst validated by defense stocks’ meteoric rise on Friday with more allies now projected to increase funding. Wednesday will open up the Fed beige book amid FOMC Chairman Jerome Powell’s mid-week appointment with the senate as a required testimony awaits but will likely offer more calculated responses around the current state of the economy.  Ironically, the yield curve just hit an 11 year narrowing between the 2 year and 10 year yields at only 25 basis points which may signal potential trouble ahead. Earnings will certainly be in the driver’s seat all week with powerhouses such as: Netflix (NFLX), Goldman Sachs (GS), International Business Machine (IBM), and Microsoft (MSFT) all slated over the next five sessions in an attempt to justify sky-high valuations brought on by the long-standing rally.     

 

Major Earnings for the Upcoming Week:

 

Monday: 

A.M BAC, BLK

P.M.NFLX

 

Tuesday:

A.M.GS, JNJ, SCHW, UNH

P.M.– CSX, UAL

 

Wednesday:

A.M. –  ABT, GWW, MS, USB

P.M. – AA, AXP, EBAY, IBM

 

Thursday:

A.M. – BK, BS, GPC, KEY, NUE, PM, PPG, UNP

P.M. – COF, ETFC, ISRG, MSFT, SKX, SRPT, SWKS

 

Friday:

A.M.– GE, HON, KSU, SLB, SWK, VFC

P.M.– N/A

 

Economic Releases (7/16– 7/20):

 

Monday:

7:30 am CT – Retail Sales

7:30 am CT – Empire State Manufacturing Index

9:00 am CT – Business Inventories

 

Tuesday:

 

7:55 am CT – Redbook

8:15 am CT – Industrial Production

9:00 am CT – Housing Market Index

9:00 am CT – FOMC Chairman Powell Testimony

3:00 pm CT – TIC Long Term Purchases 

 

Wednesday:

6:00 am CT – MBA Mortgage Applications

9:00 am CT – Housing Starts/Building Permits

9:00 am CT – FOMC Chairman Powell Testimony

9:30 am CT – Oil Inventories

1:00 pm CT – Beige Book

 

Thursday:

7:30 am CT – Weekly Jobless Claims

7:30 am CT – Philly Fed Business Outlook Survey

8:00 am CT – FOMC Member Quarles speaks  

9:00 am CT – CB Leading Index  

9:30 am CT – Natural Gas Inventories

3:30 pm CT – Fed Balance Sheet/Money Supply

 

Friday:

12:00 pm CT–Baker-Hughes Rig Count

 

*Follow us on Twitter @TradeWise

 

*BOLD above indicates important and potential market-moving news and information

                                                   

TradeWise is offering a free trial for 2 trading strategies for 60 days each: Use coupon code marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

 

Join the other recipients and help provide some feedback on our daily market blog and Weekend Update by sending an e-mail to support@tradewise.com. Your suggestions are important to us in providing the highest quality service.

Jul 13, 2018 - Market Blog

7/13/2018

 

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The combination of Facebook (FB) and Amazon’s (AMZN) record closes also propelled the Nasdaq Composite (COMP) to fresh all-time highs at 7823 yesterday. Meanwhile, the S&P 500 (SPX) and the Dow ($DJI) both saw 0.9% improvements on Thursday to set all three major indexes tracking for positive weekly results. Equity futures (/ES) are mostly flat this morning while traders dissect the latest quarterly reporting from several of the largest banks as 2nd quarter earnings kick off in earnest.  Six of the largest banks posted a 7% jump in revenue in Q1 off the heels of major tax cuts which will be tougher to match this round considering the recent flattening of the yield curve impeding profit potential. FOMC Chairman Powell will be facing the senate next week to report the current state of the economy which may also help to set the tone for rates leading into the 2nd half of the year. The 10 year yield continues to drift lower near 2.84% as a result with little variation. 

 

Chinese exports saw their trade surplus rise to $133.7 billion over the first half of 2018. Nearly $28 billion of the total occurred in June alone as exporters tried to beat the clock with the imminent trade duties taking effect. Economist expect the total to likely be curbed into the next few months as the deadline has passed. The growing excess may be used as further leverage in the ongoing bi-lateral negotiations which were rumored to be making progress yesterday. The Chinese Shanghai closed down nearly 0.2% for the final session with no follow-through from earlier in the week. Japan saw better results with nearly a 2% jump as an echo from the strong U.S. session. The yen is currently the only currency to gain ground against the strengthening U.S. dollar amid all G-10 countries.

 

Crude (/CL) is tracing for a substantial 5% weekly drop after topping out at $75.27 in early July while flirting with a sub $70 close. The effects of Libyan ports finally re-opening and rumors of a potential waivers for purchasers of embargoed Iranian oil brings a moment of relief to the surge in pricing as of late. Trump took a recent shot at Germany for teaming up with Russia for access to cheaper energy during the NATO Summit which will continue to play out. The President is currently meeting with British leaders amid additional threats to alter trade arrangements due to unsatisfactory Brexit blueprints and may continue to make ripples.  A later engagement with President Putin will also be closely watched to observe what posturing may come out of the meeting. Overall the CBOE Volatility Index (VIX) appears quite comfortable near the $12.50 level with no dire threats seen on the horizon. 

  

Stock Stories:

JP Morgan Chase (JPM) – Game of Chase! –The largest U.S. lender by assets just posted a record profit of $8.3 billion for the 2nd quarter to reach an eps of $2.29.  Trading revenue beat handily as each business unit appears to be firing on all cylinders.  Shares are barely edging higher ahead of the opening bell but remain well below highs near $120 reached in February.   

 

Major Economic Reports:

7:30 am CT –   Import and Export Prices

9:00 am CT –   Consumer Sentiment

12:00 pm CT–  Baker-Hughes Rig Count

  

Notable Earnings:   

 

Friday – 7/13:   

Before Market:  C, JPM, PNC, WFC

After Market:  N/A

   

Monday – 7/16:

Before Market:  BAC, BLK

After Market: NFLX

 

 *Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60 days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

 

Join the other recipients and help provide some feedback on our daily market blog by sending an e-mail to support@tradewise.com. Your suggestions are important to us in providing the highest quality service.

Jul 12, 2018 - Market Blog

7/12/2018

 

*Reverse Course…  Option Trade Ideas for your Inbox!  Get 2 Free Strategies for 60 days  - email support@tradewise.com or call 877.733.6786*

 

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U.S. equities reversed course yesterday as fresh tariffs weighed on the psyche of investors and sent stocks lower. The White House announced additional  tariffs on $200 billion of Chinese goods after the close on Tuesday,  which sent S&P 500 futures (/ES) 0.7% lower in the overnight session.   This carried over to the regular day session, where  /ES remained 0.75% lower for most of the day.  Plunging commodity prices did not help matters.  U.S crude oil futures (/CL) dropped 5% to $70.38 a barrel as Libya indicated they would resume export activities at its eastern port.  The drop in oil dragged the energy sector down 2.1%.  Two of its largest components,  Chevron (CVX) and Exxon Mobil (XOM) were down 3.2% and 1.3% respectively.  Copper futures (/HG) lost  3.4% as the U.S dollar rose 0.8%. Ten of the eleven S&P 500 sectors has lost ground, which was opposite of a day earlier.  The lone positive was the utility sector, which gained 0.9%, as many see those stocks as a defensive play because of their high dividend payments.  The biggest losers were energy and  industrials, both shedding more than 1.5%.  On the day, the S&P 500 (SPX) lost 0.7% to 2774.02, the Dow Jones Industrials($DJI) dropped 0.9% to 24700.45, and the Nasdaq Composite (COMP) slipped 0.5% to 7716.61. 

 

Overnight, tensions eased as their seemed to be some movement toward the negotiation table between the U.S. and China over tariffs.  In Asia, Japan’s Nikkei rose 1.2% while Hong Kong’s Hang Seng gained 0.6%.   These gains came as China guided the Yuan to its largest one day drop in over a year.  The weaker yuan makes Chinese exports more competitive.   U.S. crude oil futures (/CL) have rebounded 0.8% this morning and are currently trading near $71 per barrel.  The U.S. Consumer Price Index for June was released at 7:30 am CT.  The data came in line with analysts’ expectations of a 0.2% rise over the prior month.  The S&P 500 futures (/ES) showed a muted response to the number, maintaining their earlier gains of up 0.6% to near 2790.  30yr. Treasury bond futures (/ZB) are 0.2% lower as of this writing.

 

 

 

Stock Stories:

Broadcom (AVGO) / CA Technologies (CA) – The software company reached an agreement with Broadcom (AVGO) to be purchased for $18.9 billion.  This comes just months after President Trump blocked the chip maker from buying Qualcomm (QCOM).  The shares of CA are up 18% on the news, while (AVGO) is trading over 7% lower.

 

Major Economic Reports:

7:30 am CT –   Consumer Price Index

7:30 am CT –   Jobless Claims

9:30 am CT –   EIA Natural Gas Report

1:00 pm CT –   Treasury Budget

3:30 pm CT –   Fed Balance Sheet and Money Supply

 

Notable Earnings:   

 

Thursday – 7/12:   

Before Market:   CBSH, DAL           

After Market:      N/A

 

Friday – 7/13:

Before Market:   C, JPM, PNC, WFC

After Market:      N/A

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60  days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

 

Jul 11, 2018 - Market Blog

7/11/2018

 

*Tariffs Part Deux!  Option Trade Ideas for your Inbox!  Get 2 Free Strategies for 60 days  - email support@tradewise.com or call 877.733.6786*

 

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U.S. equities rose on Tuesday, as investors looked forward to a positive earnings season.  Stocks have ignored trade tensions while posting winning sessions in seven out of the last eight trading day.  All sectors, except financials were in the green, with the laggard declining 0.4%.  Pepsico (PEP) reported better than expected earnings, with the company’s domestic snack business being noted as a bright spot.  The shares posted their largest percentage gain since the summer of 2009.  The stock jumped 4.8% to close at $112.89.  Two of the sector bright spots were consumer staples and utilities. They gained 1.3% and 1% respectively, after both underperforming so far this year.  Earnings season will have its unofficial start on Friday when three of the largest U.S. banks report their results.  On the day, the S&P 500 (SPX) gained 0.3% to 2793.84, the Nasdaq Composite (COMP) advanced slightly to 7759.20, and the Dow Jones Industrials ($DJI) rose 0.6% to 24919.66. 

 

U.S. Treasury bond price moved modestly lower yesterday after investors bought a smaller than expected portion of the three year note auction.  The yield on the 10 yr. treasury note rose to 2.873% on Tuesday from 2.860% on the day prior.  The Federal Fund future markets on Tuesday indicated that there was a 58% probability that the Fed would raise rates at least two more times this year, which is up from a reading of 38% a month ago.  Emerging markets, the once darling of global investing, are continuing to come under pressure.  In the latest example, the Turkish lira dropped 3.5% late Monday after the country’s president appointed his son in law as finance minister and set forth measures that could lessen the independence of its central bank.

 

Yesterday after the close, the White House announced a fresh $200 billion of tariffs on imported Chinese goods.  This grouping would asses a 10% levy, on everything from fish to luggage.  The current list would not take effect for at least two months, giving the parties time to hash out a possible solution.   Asian markets reacted negatively, with Japan’s Nikkei dropping 1.8% and Hong Kong’s Hang Seng Index retracting 2.0%.  S&P 500 futures (/ES) followed suit reaching a low of 2765.75 overnight.  They have since recovered somewhat, and are currently trading down 0.7% near 2777.  30yr. Treasury bond futures (/ZB) are 0.2% higher and U.S crude oil futures are down 1% and trading near $73 a barrel.   

 

 

Stock Stories:

Alphabet (GOOG) – The technology giant is under pressure after reports surfaced that the European Union’s antitrust department is expected to issue a multi-billion euro fine in conjunction with Google’s illegal exploitation of the Android operating system.  

 

Major Economic Reports:

6:00 am  CT –  MBA Mortgage Applications

7:30 am  CT --  PPI-FD

9:00 am  CT --  Atlanta Fed Business Inflation Expectations

9:00 am  CT --  Wholesale Trade

9:30 am  CT –   EIA Petroleum Status Report

 

Notable Earnings:   

 

Wednesday – 7/11:   

Before Market:   N/A           

After Market:      N/A

 

Thursday – 7/12:

Before Market:   N/A

After Market:      N/A

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60  days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

 

Join the other recipients and help provide some feedback on our daily market blog by sending an e-mail to support@tradewise.com. Your suggestions are important to us in providing the highest quality service.

Jul 10, 2018 - Market Blog

7/10/2018

 

*European Vacation?  Option Trade Ideas for your Inbox!  Get 2 Free Strategies for 60 days  - email support@tradewise.com or call 877.733.6786*

 

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U.S. Equity Futures (/ES) are pushing slightly higher again this morning after the solid start to the week locked in the single best session over the last month. The Dow Jones' ($DJI) 1.3% pop reset the benchmark back into the black for the year albeit at meager 0.2% gain. Several of the multi-nationals that had been heavily plagued by the recent trade resistance managed to finally record strong results after a rough patch.  The tech-heavy Nasdaq (COMP) is now up 12% YTD after yesterday’s spike has the index back within a reachable 50 points of its all-time high. A 3rd consecutive gain was notched for the S&P 500 (SPX) to finish near highs at 2784 with financials roaring higher to set fresh 4 mo. highs. Several banks are slated to report quarterly results this Friday and the strongest intra-day move since March helped to bolster the recently battered space. Monday’s consumer credit report showed 7.6% annualized growth indicating a healthy undertone as the biggest jump in the last six months likely encouraged the move. Overall, earnings growth is pegged near a 20% growth across all sectors with recent tax cuts likely becoming a major factor as positive sentiment grows. 

 

Volatility still managed to dip slightly lower to end at $12.56 in the CBOE Volatility Index (VIX) although near highs of the session after bottoming out at $12 earlier Monday indicating a slight divergence against equities. Oil capacity remains strained with a recently announced strike in a major Norwegian oil field becoming the latest headline to drive prices higher with crude futures (/CL) propped near multi-year highs above $74 off growing demand. Gold Futures (/GC) are taking a backseat again with pricing slipping off a stronger dollar to $1254 an ounce as investor's appetite shift to chase recent performance in riskier asset classes.  A reading on JOLTS data will be the only material economic data on the docket today with a 6.88 million annual pace expected as skilled job openings become harder for employers to fill due to the current  landscape.

 

President Trump is heading to Europe for the remainder of the week initially meeting with NATO allies in an anticipated summit that will begin tomorrow. Some friction may develop considering recent challenges to members to increase their voluntary military spending budgets. A meeting with the Queen and Marissa May is also scheduled at a time where multiple cabinet members have left, complicating the overall Brexit strategy facing several looming deadlines. Lastly, a controversial meeting with Russian President, Putin could also create some volatility depending on the outcome as several key topics will likely be contested.  

 

Stock Stories:

Pepsi (PEP) – Chipper– The snack/beverage giant saw $16.09 Billion in revenues generated over the last quarter which was up 2% y/y to also beat eps estimates.  Although the beverage category was down 1%, snack foods helped to surpass analyst expectations. Shares are up nearly 2% pre-market off a stronger future outlook recovering somewhat from a 14% pitfall over the last year. 

 

Major Economic Reports:

5:00 am CT --  NFIB Small Business Optimism Index

7:55 am CT --   Redbook

9:00 am CT –   JOLTS

 

Notable Earnings:   

 

Tuesday – 7/10:   

Before Market:   PEP, SMPL           

After Market:   WDFC

 

Wednesday – 7/11:

Before Market:  N/A

After Market:  N/A

 

*Follow us on Twitter @TradeWise

 

**BOLD above indicates important and potential market-moving news and information

 

TradeWise Advisors is offering a free trial for 2 trading strategies for 60  days each: Use coupon code Marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com

 

Join the other recipients and help provide some feedback on our daily market blog by sending an e-mail to support@tradewise.com. Your suggestions are important to us in providing the highest quality service.

Jul 09, 2018 - Market Blog

7/09/2018

 

*The Monday Grind!  Option Trade Ideas for your Inbox!  Get 2 Free Strategies for 60 days - email support@tradewise.com or call 877.733.6786*

 

**Check out the NEW TD Ameritrade Network on the TOS platform or at https://tdameritradenetwork.com/ for financial news**

 

Stock futures (/ES) are suggesting a sharply higher start to the week with a renewed focus on the upcoming earnings season. Recent rumblings of trade tariffs have seemed to become fatigued somewhat as investors find some appeasement in last week’s rosy jobs report. China saw nearly a 2% improvement overnight on the Shanghai after bouncing off 18 mo. lows formed just last week. Neighboring Japan is also experiencing a 1% early advantage despite taking on heavy flood damage in their southern region. European markets are responding positively from recent developments in the ongoing Brexit transformation as the chief negotiator suddenly resigned from his post over the weekend. ECB President Draghi will be speaking in front of Parliament momentarily as the Union attempts to make a major shift towards normalization after an extended period of quantitative easing which has likely ran its course. 

 

Inflationary readings are scheduled for both China and the U.S. over the course of this week, but recent tariffs were likely enacted too recently to make any major ripples to the results. Oil Futures (/CL) are holding steady near the $74 a barrel mark despite a drop in the greenback’s value. Last week’s inventory report signaled a 3.5 year low in reserves as demand outweighs any lasting concerns of a slowdown caused by protectionist trade arrangements. The weaker dollar has helped metals overall with: gold, copper, and aluminum all indicated higher.   

 

Consumer credit is the sole piece of economic data scheduled today with a forecast near $12.2 Billion. A general void in material news to start out the week is likely seeing the optimism of Friday’s 213K jobs formed likely spilling over into early sentiment. U.S. Treasuries are lingering near the 2.853% range ahead of auction activity later this morning which is good enough for the highest jump in nearly three weeks with investors rotating back into higher beta instruments. The bank of Canada will likely be in the spotlight mid-week as a rate hike from their central bank is looking more probable. The President is expected to nominate a new Supreme Court Justice tonight which will certainly have a lasting impact to major upcoming decisions and can potentially rattle some sectors depending on the final selection. 

 

Stock Stories:

Proctor and Gamble (PG) – Shelfed! – The popular consumer conglomerate is down this morning after a notable downgrade.  Concerns over slowing market growth, volatility in emerging markets, and a stronger dollar are all likely headwinds for the company.  A Major restructuring of M&A activity may be a potential solution as the stock is down nearly 14% YTD. 

 

Major Economic Reports:

10:30 am CT – 3 mo./ 6 mo. Bill Auction

11:30 am CT – TD Ameritrade IMX

 2:00 pm CT  -- Consumer Credit

 

Notable Earnings:   

 

Monday – 7/9:   

Before Market:   N/A 

After Market:  N/A    

 

Tuesday – 7/13:

Before Market:  PEP, SMPL

After Market: WDFC

 

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