Today's will bring job openings data will be featured, as well as minutes from the FOMC meeting.

The following companies are slated to release quarterly earnings today, July 7:

MSC Industrial Direct Co. Inc. (NYSE:MSM -- $90.80) distributes metalworking and maintenance, repair, and operations (MRO) products in the United States, Canada, Mexico, and the United Kingdom. MSC Industrial will report its Q3 earnings of 2021 after the market closes today.

WD-40 Co. (NASDAQ:WDFC -- $255.49) develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. WD-40 will report its Q3 earnings of 2021 after the market closes today.

Here is a quick look at how yesterday's solo earnings announcement played out:

SMART Global Holdings Inc. (NYSE:SGH -- $48.10) designs and manufactures electronic products focused in memory and computing technology areas. SMART Global reported $1.39 EPS for the quarter, beating the consensus estimate of $1.09 by $0.30. The company earned $437.73 million during the quarter, compared to analyst estimates of $415.48 million.

Looking ahead to tomorrow, Thursday will be focused around  regularly scheduled initial and continuing jobless claims data, as well as the consumer credit report.  All economic dates listed here are tentative and subject to change.

Schaeffer's Investment Research turns 40 this month! Celebrate our birthday with us with an incredible offer, listed below!

** Schaeffer's Event Trader portfolio has doubled in value (+109.72%, to be exact) over the past six months by simply putting 10% of its portfolio into each simple put or call purchase recommended in the program! Compare that to the SPX that has only returned 11.93% over the same timeframe. To kick off the celebration for our 40th anniversary this month, Bernie is letting you take Event Trader out for a spin this month for just $4 by clicking here before July 9th! **

With Independence Day now behind us and the second half of the year officially underway, investors are setting out their investment strategies for the back nine of 2021. The pharmaceutical industry has been in focus over the past 12 months, as the ongoing Covid-19 pandemic continues to make headlines. And while vaccine rollouts have eased some of Wall Street's fears, Abbott Laboratories (NYSE:ABT) is still a key player in the world of pandemic stocks. More specifically, the pharma name received emergency use authorization from the U.S. Federal Drug Administration (FDA) for its 15-minute antigen test roughly one year ago, which coincides with its healthy 27.3% year-over-year lead.

It looks like Abbot Laboratories stock may have more room to run, too, per data from Schaeffer's Senior Quantitative Analyst Rocky White. The equity recently appeared on White's list of the best performing stocks on the S&P 500 in July, going back 10 years. In fact, the security has seen positive monthly returns during this time period nine out of ten times, with a 4.8% pop on average. At last check, the shares are up 0.3% at $118.41, meaning a move of similar magnitude would place ABT back above $124 by the end of the month.

A similar pop would also put Abbott Laboratories stock not too far off from its Feb. 12, all-time high of $128.54. Plus, the security's June bounce off the $105 level is only picking up more steam, with shares now eyeing their seventh win in eight sessions, as well as a close above the 100-day moving average for the first time since May 11.

A shift in sentiment over in the options pits could create additional tailwinds for ABT. This is per the equity's Schaeffer's put/call open interest ratio (SOIR), which sits higher than 93% of readings from the past year. This means short-term options traders have been more put-biased than usual. 

What's more, ABT premiums are a bargain at the moment. The security's Schaeffer's Volatility Index (SVI) of 16% stands higher than only 1% of readings in its annual range, suggesting options traders have rarely priced in lower volatility expectations during the past 12 months.

It's been a choppy summer so far for semiconductor stock Micron Technology, Inc. (NASDAQ:MU). The firm is fresh out of the earnings confessional, reporting last Thursday, July 1, with its stock suffering a bear gap even after its quarterly report topped analysts' estimates. Putting even more pressure on MU is the 60-day moving average, which the equity has only settled north of once since late April. While Micron stock is attempting another run-up to this trendline -- the stock was last seen up 0.3% at $80.58 -- bulls should be cautious of using this post-earnings pullback as an entry point, as there's reason to believe MU isn't done cooling off just yet. 

The chip concern just landed on Schaeffer's Senior Quantitative Analyst Rocky White's list of S&P 500 (SPX) stocks with the worst returns in July, going back 10 years. According to White's data, MU has only seen two positive one-month returns since 2011, averaging a 1.2% drop in this time period. It's also worth noting that MU is the only tech stock to show up on the list, which looks to be dominated by energy and media names. And while a 1.2% drop isn't completely devastating, with several layers of support still in place including the 180-day moving average, it could be a sign to wait out the summer doldrums before claiming stake in MU. 

A shift in analyst sentiment could also put pressure on MU. The equity received a bull note from BMO right before earnings, which initially gave the shares a boost, though this was clearly short-lived. The security sports 17 "buy" or better ratings, and just four "hold" ratings. What's more, the 12-month consensus price target of $118.31 is a hefty 47.7% premium to current levels. 

Short interest is on the rise, up 2.5% in the last two reporting periods, but there's plenty more room on the bearish bandwagon. The 24.17 million shares sold short make up just 2.2% of the stock's available float, or a little over one day at MU's average daily pace of trading. 

The first half of 2021 is behind us, and with that, a lot of excitement depending on where your investment or trading focus is. There was the boom/bust/boom of meme stocks. Bitcoin (BTC), last year’s superstar, was another hot topic, crashing 50% in April-May. Anyone that bought and held this cryptocurrency in late January and held into Friday is now underwater.

If you are in tune with financial media, you are well aware of the deep pullback in commodities, just as the inflation debate took hold. Whether it was gold, lumber, wheat, zinc or copper, corrections in the commodity market are abound. Bonds got into the act, with the iShares 20+ Year Treasury Bond ETF (TLT -- 145.04) lower by 15% in the first three months of 2021. Equity volatility, an asset class that we closely follow as measured by the Cboe Market Volatility Index (VIX -- 15.07), crashed too. From its January peak into early April, this measure retreated by more than 50%.

Coincident with the crash in equity volatility, there was new high after new high as the first half of 2021 concluded, with respect to the "boring" S&P 500 Index (SPX -- 4,352.34). While the index experienced a couple of pullbacks, they were extremely mild in comparison to what we witnessed in most other assets.

Even though the SPX stood its ground, there were sectors that were not immune to 10% corrections, testing investors nerves in the process. For example, exchange-traded funds such as the tech-heavy Invesco QQQ Trust Series (QQQ -- 358.64) and Financial Select Sector SPDR Fund (XLF -- 36.94), in addition to the Invesco Solar ETF (TAN -- 88.18), all experienced corrective moves in the first half 2021. If you are into exchange-traded funds with an international focus, you were not spared from the 10% corrections in the iShares MSCI Emerging Markets ETF (EEM -- 54.78). 

In other words, if you are on record as saying, "a correction is coming," take a bow if you were not directly referring to the SPX. We were awash in corrections and crashes in popular assets - cryptocurrencies, numerous commodities, bonds, volatility, and sub-sectors of the broader market.

As many assets struggled at some point during the first half of 2021, the SPX rallied in an orderly manner. Many of you are familiar by now with a chart that I have been posting weekly, which shows a channel that the SPX has been trading in or above since mid-November, which is when promising headlines on vaccines for Covid-19 first emerged. In fact, there were only 11 or 12 closes below this upward-sloping channel spread out in the first six months. 

After a June expiration-week selloff pushed the SPX to the bottom of this channel, the SPX has not only recovered these losses, but is off to an excellent start to the second half of 2021. In fact, the top of this channel is very much in play, as a potential resistance area between 4,375 and 4,390 to begin a shortened Independence Day week.

On April 9, the SPX broke out above potential resistance from the upper boundary of this channel. At the time, option buyers were unwinding a multi-month peak in bearishness on SPX components, as is evident by the late-March high in the SPX component 10-day buy-to-open put/call volume ratio. 

After the breakout, these short-term traders became increasingly bearish, and the SPX continued to grind higher above the channel into early May. The SPX finally broke back below the channel when option speculators suddenly turned bullish. 

This time, as the upward boundary of the SPX channel comes into play again, option buyers on SPX components are still unwinding a peak in bearish bets in late May, but the ratio is much lower than early April. The extreme low in this ratio decreases the odds of enough firepower being available to push the SPX through the upward boundary of its channel -- at least for a sustained period. 

In fact, while the direction of the ratio is bullish, the absolute level of this ratio – which is now below the 2021 low in late January – increases the risk of a short-term pullback. In late January, for example, the SPX began a decline to the lower boundary of this channel after probing the upward boundary of the channel for a few days (see circle in chart above). 

If a repeat of the late-January pullback occurs, a natural support level is the mid-June closing high at 4,255, which preceded the expiration-week selloff. This level coincided with the lower boundary of the channel at Friday’s close.

Momentum in the market and consecutive highs argues to stay the bullish course.  But sentiment indicators are suggesting risks of a pullback are rising. If hedging isn’t your preferred method to manage risk, another strategy to consider is selling long stock positions, and replacing them will call positions, which reduces your dollar exposure to the market. But by utilizing the leverage options provide, you are still able to capture significant dollar gains if the momentum continues to the upside, like that of April and May.

Continue reading:

• The Week Ahead: Independence Day Brings Quiet First Full Week of July
• Indicator of the Week: Addressing Options Sentiment by Sector

Pharmaceutical company Pfizer Inc. (NYSE:PFE) just said it is reducing deliveries of its Covid-19 vaccine to Mexico for two weeks as it works to renovate its United States plant. Separately, its shot, which it developed with BioNTech (BNTX), showed a 64% efficacy rate in Israel, with the highly transmissible Delta variant weakening some of its overall effectiveness, according to the country's health ministry. The ministry added, however, that the vaccine still has a 93% efficacy rate in preventing hospitalization and death. 

PFE is flat this morning, last seen off 0.2% to trade at $39.57. The stock has plenty of support locked in place, including its 60-day moving average and further down, the $38.50 mark. For the year, PFE boasts a roughly 7.9% lead. 

Analysts are still approaching the stock with caution, which could lead to an upward shift in sentiment, should some of this support continue to hold. Of the 14 in coverage, four say "strong buy," and 10  say "hold." Meanwhile, the 12-month consensus price target of $42.97 is an 8.9% premium to current levels. 

Regardless of its next move, now looks like a perfect time to speculate on PFE's next move by buying options. The stock's Schaeffer's Volatility Index (SVI) of 14% stands below  all other readings from the past year, suggesting options traders are pricing in extremely low volatility expectations right now. What's more, its Schaeffer's Volatility Scorecard (SVS) stands at 82 out of a possible 100. This  means the stock tends to exceed these volatility expectations -- a good thing for buyers. 

Independence Day in the United States was celebrated over the weekend and the stock market remained closed on Monday, July 5, in observation of the holiday. The stock market will reopen again today at 9:30 a.m. ET for normal trading hours for the rest of this short trading week.

There are no notable earnings reports coming up during this first full week of July. Economic data is fairly muted as well, after Monday's Independence Day holiday. Nonetheless, investors will be keeping an eye on updates from the Federal Open Market Committee (FOMC) in the middle of the week, as well as a fresh jobless claims data. All economic dates listed here are tentative and subject to change.

Today's economic calendar will feature the final Markit services purchasing managers' index (PMI) and the Institute for Supply Management (ISM) services index. 

The following company is slated to release earnings today, July 6:

SMART Global Holdings Inc. (NYSE:SGH -- $48.10) designs and manufactures electronic products focused in memory and computing technology areas. SMART Global will report its Q3 earnings of 2021 after the market closes today.

Looking ahead to tomorrow, Wednesday will bring job openings data will be featured, as well as minutes from the FOMC meeting. All economic dates listed here are tentative and subject to change.

Schaeffer's Investment Research turns 40 this month! Celebrate our birthday with us with an incredible offer, listed below!

** Schaeffer's Event Trader portfolio has doubled in value (+109.72%, to be exact) over the past six months by simply putting 10% of its portfolio into each simple put or call purchase recommended in the program! Compare that to the SPX that has only returned 11.93% over the same timeframe. To kick off the celebration for our 40th anniversary this month, Bernie is letting you take Event Trader out for a spin this month for just $4 by clicking here before July 9th! **

Wall Street crossed over into the second half of the year, as well as a new month and quarter this week, and the transition was a seamless one. All three major indexes exhibited mostly positive price action throughout the week, adding to the notable returns garnered during the first half of 2021. Specifically, the S&P 500 (SPX) roared up the charts in a seemingly unstoppable climb, stringing together six-straight record closing highs, and well on its way to number seven, after hitting an intraday peak earlier in today's session.

Monday's trading did start off a bit rocky, as the Dow Jones Industrial Average (DJI) dropped 150 points while energy and transport stocks floundered. The tech-heavy Nasdaq Composite (IXIC), on the other hand, joined the S&P 500 in logging fresh records, with a spotlight shining on outperforming Big Tech. The weekend's infrastructure deal in Washington D.C. was also on investors' radars, amid news that U.S. President Joe Biden would not veto the legislation, even if it meant forgoing a Democrat-favored reconciliation bill. By Tuesday, sentiment was cooling, with the Nasdaq and S&P 500 barely eking out wins as anxieties about the easily transmissible Covid-19 Delta variant weighed.  

The second quarter and first half of the year officially came to a close on Wednesday, and traders eyed substantial growth for all three indexes, though markets were mixed on the day and the Nasdaq wound up snapping its back-to-back win streak to turn slightly lower. By Thursday, however, stocks were bouncing back, as upbeat jobs data injected some optimism into markets after weekly jobless claims hit a pandemic-era low. This rally has bled into Friday's trading, as investors gear up for the three-day Fourth of July weekend. At last glance, the Dow, the S&P 500, and the Nasdaq are all on pace to log their second-straight weekly wins, as the Cboe Volatility Index (VIX) -- Wall Street's  "fear gauge" -- heads for its lowest close since February 2020. 

Must-Snag Stocks in July (And Which Stocks to Avoid)

A brand new month means another study from Schaeffer's Senior Quantitative Analyst Rocky White digging into seasonality and how investors can work it to their advantage. Of the best 25 stocks to own in July, historically, Google parent Alphabet (GOOGL) easily topped the list, which could bode well for options players that might want to get in on the rallying FAANG name. Meanwhile, the list of the 25 worst performers could give clues into one sector traders might want to put the breaks on this month. 

How Companies are Responding to Covid-19 Right Now

The easily transmissible Delta variant of Covid-19, along with the uneven distribution of vaccines globally, which has led to extended lockdowns throughout the world, has certainly put some weight on reopening optimism. We covered several corporations which have been responding to these new fears in an attempt to get the virus under control. Johnson & Johnson (JNJ) said today that its vaccine is showing efficacy against the Delta variant for up to  eight months following immunization.

On the other hand, Altimmune (ALT) scrapped its Covid-19 vaccine trials, sending its stock spiraling, after the company said it would focus its efforts on the development of its liver and obesity treatments. Another big name that's had a hand in the distribution of vaccines, Walgreens Boots Alliance (WBA), stepped into the earnings confessional. The company reported a quarterly profit and revenue beat, and added that it administered 17 million jabs in the third quarter, with 28 million vaccination in total forecast for 2021. Despite the upbeat report, the stock took a serious nosedive on Thursday. 

What Could Move Markets After The Fourth

The week following a holiday notoriously known for fireworks might act as a reprieve for some investors, with a relatively bare economic calendar on deck. The most notable event will come mid-week as the Federal Open Market Committee (FOMC) releases its latest meeting minutes, while another round of weekly jobs data will also move markets. In the meantime, check out a sector-by-sector breakdown of options sentiment from Schaeffer's Senior Quantitative Analyst Rocky White, along with an in depth analysts of the latest FOMC meeting, as stocks reversed some of their expiration week losses, courtesy of Senior Vice President of Research Todd Salamone.