Friday's Market Recap - Despite Strong Q2 Earning, Banks Surge, And Later Retreat.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are flat to mixed two and a half hours before the start of trading. Dow futures down 5 points, Nasdaq futures up 3 points, and S&P futures down a fraction .75 point. The big banks begin report second quarter earning this morning, and investors are hoping this will be the catalyst that will push bank shares higher.
On The Bond Desk:
The US 10 Year Bond Yield at 2.85%.
Currency Desk:
Euro dollar: 1.16
UK Pound: 1.31
Crude Oil:
WTI crude oil futures @ $70.07/barrel, down 0.37%.
On the Earnings Calendar:
JP Morgan reported Q2 earnings results before the bell. The company beat Q2 Earnings expectation. Share were up in the premarket.
Citigroup also reported solid Q2 earnings performance, topping analyst expectations.
Wells Fargo reported disappointing Q2 earnings, results. The company missed analyst earnings and revenue expectation, due to pressure from regulatory issues.
In M&A News:
Today the DOJ appeals the AT&T Time Warner Merger. That deal was closed a few day after the court approved the deal.
What About The Asian And European Markets?
Major Asian markets were mostly higher. Japan (Nikkei 225) up 1.85%, Shanghai fell 0.23%, Hong Kong (Hang Seng) up 0.16%
Major European markets closed higher. German (DAX) rose 0.38%, France CAC 40 up 0.43%, London FTSE 100 up 0.14%.
Market And Sector Dynamics
Stocks opened the Friday 13th, trading day modestly higher. The Dow gained 24.95 points, Nasdaq rose 6.75 points, and the S&P slipped 0.06 point. Shares of banks, JP Morgan and Citigroup are higher early in the session.
By 10:00 AM, stock faded with the Dow falling into negative territory, as shares of banks declined. Stocks regained momentum, climbing back into positive territory, with the Dow reaching a high of 112 points, by 1:00 PM.
Six of the eleven S&P sectors closed the session with gains, led by consumer staples, industrials, energy, consumer discretionary, and healthcare. Telecommunications services, financials, and real estate, were lower.
Factors Influencing Today's Market
Crude oil was modestly higher in today's trading. WTI crude oil closed at $70.56/barrel, up 0.36%.
This week's Baker Hughes Oil Rig count remained unchanged at 863 total rigs.
JP Morgan and Citigroup Q2 beat expectations. Shares of both companies finished lower on the session.
Well Fargo disappointed investors, after earnings and revenue missed expectations.
Asian and European markets closed their sessions with gains.
In a surprise twist, the DOJ is appealing the now closed AT&T Time Warner Merger.
Market Close Volume Traded And Advance Decline Ratio
When trading ended, markets were moderately higher. The Dow gained 94.52 points, Nasdaq gained 2.06 points, and the S&P added 3.02 points. Total NYSE volume traded, 2.95 billion shares. Advancing and Declining shares were mostly even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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