Here are the most important news, trends and analysis that investors need to start their trading day:
1. S&P 500 futures flat despite strong banks earnings
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 12, 2021.
Brendan McDermid | Reuters
U.S. stock futures were flat Tuesday as earnings season kicked off 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 was rather steady Tuesday, around 1.36% after going as low as 1.25% last Thursday. The government is out with the June consumer price index at 8:30 a.m. ET. Economists expect the latest inflation report to show 0.5% increases in the headline CPI and the non-food and energy number. Those measures were up 0.6% and 0.7%, respectively, in May.
2. JPMorgan, Goldman Sachs quarterly results top estimates
The JP Morgan Chase & Co. headquarters, The JP Morgan Chase Tower in Park Avenue, Midtown, Manhattan, New York.
Tim Clayton – Corbis | Corbis Sport | Getty Images
Shares of JPMorgan fell nearly 1% 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 0.3% 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.
3. PepsiCo raises forecast after earnings crush estimates
Bottles of PepsiCo Inc. brand Pepsi soda for sale at a grocery store in Bagdad, Kentucky, U.S., on Friday, April 9, 2021.
Luke Sharrett | Bloomberg | Getty Images
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.
4. Boeing cuts 787 Dreamliner production, delivery targets
An employee works on the tail of a Boeing Co. Dreamliner 787 plane on the production line at the company’s final assembly facility in North Charleston, South Carolina.
Travis Dove | Bloomberg | Getty Images
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.
5. FDA to announce new warning on J&J Covid vaccine, report says
A healthcare clinician prepares a dose of the Johnson & Johnson vaccine for the coronavirus disease (COVID-19) for a commuter during the opening of MTA’s public vaccination program at the 179th Street subway station in the Queens borough of New York City, New York, U.S., May 12, 2021.
Shannon Stapleton | Reuters
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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