Stock Futures Eye Modest Gains as Earnings Pour In

Fed Chair Jerome Powell is scheduled to testify before congress later today

Deputy Editor
Jul 14, 2021 at 9:26 AM
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Stock futures are eyeing modest gains this morning, with the Dow Jones Industrial Average (DJI) pointed roughly 73 points higher, while the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are both set to open comfortably in the black. Wall Street is eyeing more earnings reports, and the bank sector is still in the spotlight. Today's results are somewhat mixed, though. Bank of  America (BAC) reported a revenue miss, while Blackrock (BLK) quarterly results topped expectations. Meanwhile, investors are looking ahead to Federal Reserve Chairman Jerome Powell's scheduled testimony, in which the central bank leader is expected to try and persuade Congress that easy monetary policies are still necessary, as inflation rises to its highest reading in years

Continue reading for more on today's market, including:

  • Senior Quantitative Analyst Rocky White breaks down a list of historically solid straddle plays
  • Another bank stock with earnings due out this week.
  • Plus, PTON slapped with a bear note; DAL's earnings impress; and buyout deal falls through for AVGO.  

futures chart july 14 2021

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.6 million call contracts traded on Tuesday, compared to 813,373 put contracts. The single-session equity put/call ratio fell to 0.48 and the 21-day moving average stayed at 0.46.
  2. Wedbush downgraded Peloton Interactive Inc (NASDAQ:PTON) to "neutral" from "outperform," noting a broadening market and a return to gyms post-pandemic. PTON is 3.1% lower in electronic trading, though it still boasts a 94% gain year-over-year.
  3. Delta Air Lines, Inc. (NYSE:DAL) is up almost 2% this morning, following the company's lower-than-expected second-quarter losses and a revenue beat. The firm said it saw a strong pre-tax profit for June, and cited strong customer demand. DAL has been taking a breather during the past couple months, but still sports a 54.1% year-over-year lead. 
  4. According to a Wall Street Journal report, Broadcom Inc (NASDAQ:AVGO) is no longer planning on buying the software firm SAS Institute, because the co-founders tech name have changed their minds about selling. AVGO is 0.8% in electronic trading, and just broke higher earlier this week after consolidating below the $480 level for months. 

  5. Today, the producer price index (PPI) for June and the latest Beige Book report are due out. 

OV Buzz Chart July 14

Inflation Concerns Weigh on Global Markets 

Markets in Asia slipped today, after investors digested a wider-than-expected U.S. inflation report. China's Shanghai Composite paced the losers with a 1.1% drop, while Hong Kong's Hang Seng followed with its own 0.6% pullback. Meanwhile, Japan's Nikkei fell 0.4%, and the South Korean Kospi lost 0.2%.

European markets are lower midday, amid data that Euro zone industrial production fell by 1% in May, compared to the expected 0.2%. U.K. inflation data came in higher-than-expected in June as well, surging to 2.5% from May's 2.1% -- its highest since August of 2018, while the consumer price index (CPI) grew 0.5% month-on-month for May. London's FTSE 100 is down 0.4% at last check, while the French CAC 40 is off 0.2%, and the German DAX is 0.1% lower. 

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