Investors are still unpacking yesterday's tech rotation
Major banks are stepping into the earnings confessional today, unofficially kicking off another earnings season. Investors are also unpacking the producer price index (PPI) reading for June, which showed wholesale prices rose at 0.2%, slightly higher than the expected 0.1% increase.
Traders are also looking ahead to consumer sentiment data due out later today, as they digest yesterday's tech rotation. At last glance, Dow Jones Industrial Average (DJIA) futures are modestly above breakeven, while Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures are modestly lower.
Continue reading for more on today's market, including:
- Semiconductor stock rallies before earnings report.
- Analysts respond to Costco's new membership prices.
- Plus, Carvana draws bullish coverage, and two bank earnings reports to unpack.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.9 million call contracts and 1.1 million put contracts traded on Thursday. The single-session equity put/call rose to 0.61, while the 21-day moving average remained at 0.67.
- BTIG initiated coverage of Carvana Co (NYSE:CVNA) with a "buy" rating, with the analyst in question noting its unique position against sector peers. CVNA is 1.4% higher ahead of the open and already boasts an impressive 145.4% lead for 2024.
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Wells Fargo & Co (NYSE:WFC) missed analysts'
net interest income estimates for the second quarter after a 9% year-over-year drop. The bank shares are down 5.4% before the bell, but still sport a 22.2% year-to-date lead.
- JPMorgan Chase & Co (NYSE:JPM) reported a second-quarter earnings and revenue win, but comments from CEO Jamie Dimon expressing wariness over inflation and interest rates are weighing on the shares. While JPM boasts a 40% year-over-year lead, it is flat in premarket trading.
- Slew of bank earnings and inflation data due out this week.
Japan's Nikkei Snaps Record Streak
Asian markets finished with mixed results Friday. Japan’s Nikkei dropped 2.5%, ending its run of record highs, while the South Korean Kospi shed 1.2%, and Hong Kong’s Hang Seng surged 2.6%. China’s Shanghai Composite inched 0.03% higher, after the country’s exports beat expectations with an 8.6% year-over-year rise in June, compared to Reuters economists’ expectations of an 8% rise.
European bourses are higher at last glance, as investors turn their heads toward stateside inflation data. London’s FTSE 100 is up 0.3%, while the French CAC 40 and German DAX jump 0.8% and 0.5%, respectively.