JPMorgan Chase and Wells Fargo kick off earnings season
It's a big day for bank stocks, with blue-chip component JPMorgan Chase (JPM) headlining a fresh earnings season with a second-quarter earnings and revenue beat. Sectors peers Wells Fargo (WFC) and Citigroup (C) did not fare as well though, as investors brace for quarterly reports severely impacted by the coronavirus pandemic. As a result, futures on the Dow Jones Industrial Average (DJI) are only cautiously above fair value --having pared bigger gains earlier this morning --as Wall Street looks to shake off Monday's late-afternoon collapse. Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) have slipped below fair value, as spiking coronavirus cases weigh.
Continue reading for more on today's market, including:
- Schaeffer's Senior Market Strategist Matthew Timpane looks at the possibility of an upcoming consolidation phase.
- The best is yet to come for one red-hot software stock.
- Plus, Tesla picks up a Street-high bull note; Delta Air Lines grounded after earnings; Nokia introduces 5G technology.
5 Things You Need to Know Today
- The Cboe Options Exchange
(CBOE) saw 1.9 million call contracts traded on Monday, and 786,583 put
contracts. The single-session equity put/call ratio fell to 0.41, and the
21-day moving average fell to 0.51.
- Tesla Inc (NASDAQ:TSLA) stock is up 6.4% in electronic trading, after Piper Sandler hiked its price target to $2,322, the highest price target on Wall Street. The analyst in coverage raved about the electric car company's market share gains and software potential. Despite ultimately ending 3.1% lower yesterday, TSLA hit a record high of $1,794.99 out of the gate.
- Delta Air Lines, Inc. (NYSE:DAL) is down 1.1% before the open, after the airliner reported a wider-than-expected second-quarter loss. While revenue topped estimates, Delta predicted it would take up to two years for the airline industry to sustainably recover from the COVID-19 pandemic. Delta stock is down 54% in 2020.
- The shares of Nokia Oyj (NYSE:NOK) are up 2.2% ahead of the open, after the Finland-based tech company announced new software the enables users to seamlessly upgrade from 4G to 5G. NOK has more than doubled off its March 18 bottom of $2.34.
- Today's calendar will feature the Organization for Petroleum Exporting Countries (OPEC) monthly report, the consumer price index (CPI), and the Core CPI. The National Federation of Independent Business (NFIB) will also release its small business optimism survey. Meanwhile, earnings from Fastenal (FAST) are also on tap.
Recession Woes Sink Asian Markets; Europe Eyes WHO Warning
Stocks in Asia dipped today, as skepticism over recent upward momentum in global markets and U.S.-China tensions settled. Even China’s fresh trade data, which exceeded analyst expectations, wasn’t enough to offset news that Singapore has entered its worst recession to date. Hong Kong’s Hang Seng closed down 1.1%. Meanwhile, Japan’s Nikkei and China’s Shanghai Composite closed 0.9% and 0.8% lower, respectively. Elsewhere, South Korea’s Kospi dipped 0.1%
European stocks are also retreating, after a World Health Organization (WHO) official said “too many countries are headed in the wrong direction,” as it pertains to coronavirus, and the U.K. economy posted a weak May rebound. At last check, France’s CAC 40 was down 1.6%, the German DAX was down 1.4%, and London’s FTSE 100 was down 0.3%.