Stock Futures Pop as Investors Digest More Earnings

Goldman Sachs kicked off a busy week of earnings

Deputy Editor
Jul 18, 2022 at 9:13 AM
facebook twitter linkedin


Stock futures are sitting well above fair value on Monday, extending Friday's win that came as concerns over the Federal Reserve issuing a full-point rate hike cooled. Bank earnings also boosted sentiment at the end of the week, and that optimism is rolling into today after better-than-expected results from Goldman Sachs (GS). Dow Jones Industrial Average (DJIA) futures are pointed more than 250 points higher. Meanwhile, Futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) also sit solidly in the black, as investors look toward another week packed with earnings.

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

Futures Chart 2 July 18_2022

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.52 million call contracts and 892,056 put contracts traded on Friday. The single-session equity put/call ratio fell to 0.59, and the 21-day moving average stayed at 0.66.
  2. Shares of Goldman Sachs Group Inc (NYSE:GS) were last seen 3.7% higher in electronic trading, after reporting an earnings and revenue beat for the second quarter. The banking name did, however, see a year-over-year drop in profit, thanks to a waning dealmaking pace. In the last 12 months, GS is down 17.2%.
  3. Crypto-adjacent stocks are rising before the opening bell, most notably Coinbase Global Inc (NASDAQ:COIN), which was 6% higher at last check. This move higher comes after an overnight surge in the value of bitcoin and ether. COIN is down 78.7% in 2022.
  4. Elon Musk's ongoing battle with Twitter Inc (NYSE:TWTR) rages on, as the billionaire and Tesla (TSLA) CEO filed a court motion Friday evening to deny the social media company's request for an expedited trial. Year-to-date, TWTR has taken a 12.7% haircut, and it's inching lower ahead of the bell, last seen down 0.9%.
  5. On the economic data front today, the National Association of Home Builders (NAHB) home builders' index is scheduled for release.

OV Buzz Chart July 18

European Markets Higher Following Stateside Rate Hike News

Hong Kong’s Hang Seng surged 2.7% today –with the tech sector leading the charge -- as markets in Asia kicked the week off on a high note. China’s Shanghai Composite added 1.6%, while the South Korean Kospi tacked on 1.9%. Japan’s Nikkei, meanwhile, was closed for holiday.

European markets are joining in the upbeat sentiment midday, after concerns over a large rate hike from the U.S. Fed eased on Friday after the report from the Wall Street Journal over the weekend. At last check, London’s FTSE 100 is up 1.3%, while the German DAX rises 1.4%, and the French CAC 40 jumps 1.6%.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners