Global tensions continue to grow as earnings season kicks off
The major indexes suffered losses for most of the week, with the Dow Jones Industrial Average (DJI) on pace for its third-straight daily drop and the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) each headed for a fourth consecutive loss of their own. As conflict continues to escalate across the Middle East and Fed Chair Jerome Powell shared a hawkish commentary, 10-year Treasury yields surged to 16-year highs — above the 5% marker. The Cboe Volatility Index (VIX) is seeing a breakout of its own, eyeing its highest peak since late March.
Bank Earnings Barrage
The finance sector wasted no time this week kicking off earnings and taking over headlines, after Bank of America (BAC) and Bank of New York Mellon (BK) looked shiny with quarterly beats right out of the gate. Morgan Stanley (MS) suffered a slump in wealth management asset flows, though it did manage an earnings win. Credit card powerhouse American Express (AXP) suffered a post-earnings drop that sparked fears of an increase in debt defaults.
Blue-Chip Buzz Circles Wall Street
It’s not earnings season without big-name blue-chips making their way into investors’ heads via some buzz-worthy moves. Cincinnati-based Procter & Gamble (PG) enjoyed a quarterly earnings and revenue win, while Netflix (NFLX) boasted 9 million more subscribers. Lastly, cellular mogul AT&T (T) became an options trader’s favorite after its quarterly blowout.
Looking Toward Next Week
Investors have a lot to unpack next week, including a jam-packed earnings docket. What’s more, additional inflation and gross domestic product (GDP) data is on tap that will give further insights into the state of the U.S. economy. Also be sure to check out Senior V.P. of Research Todd Salamone’s take on the two levels you should be watching close right now for the S&P 500. Our Senior Quantitative Analyst Rocky White, meanwhile, peers into which sectors options traders have been hanging their hat in.
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