Bank Earnings Reveal State of Economy

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as bank earnings reveal state of economy. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Stock futures rise ahead of bank earnings

U.S. stock futures moved higher in early trading and pointed to gains at the open on Tuesday, as investors eye earnings reports from some of the nation’s largest banks. Dow futures rose 70 points. The S&P 500 and Nasdaq 100 futures rose 0.35% and 0.4%, respectively.

 

The S&P 500 (SPY) rose +1.34% today. All 11 sectors landed in the green as shown below in the sector graph. Gains ranged from +3.51% to less than 1%.

The Dow Jones index popped +556 points higher (+2.13%) to close at 26,642. The Nasdaq added +97 points (+0.94%) to settle at 10,488.

Bank Earnings Reveal State of Economy

Stocks ended in positive territory Tuesday as investors used sector rotation to buy underperforming sectors.

Caterpillar was the best-performing Dow stock, rising more than 4%. Exxon Mobil and Chevron were up more than 3% each as well. Boeing closed 2.5% higher. At the S&P 500 sector level, energy jumped 3.6% while materials and industrials each gained more than 2%.

Sentiment also got a boost after Florida reported a daily coronavirus case increase that was below a seven-day average. California’s daily Covid case rate decreased slightly from Monday’s as well.

Big Tech — which has been a stalwart on Wall Street all year as investors bet these stocks will stay resilient during the coronavirus pandemic — lagged. Amazon and Netflix were down 0.6% and 0.1%, respectively. Alphabet rose 0.6% after being down for most of the day.

JPMorgan Chase reported better-than-expected results for the second quarter on the back of a massive surge in trading revenue. Citigroup’s second-quarter earnings were also driven in part by a sharp uptick in trading revenue. JPMorgan shares closed 0.6% higher while Citigroup lost 3.9%.

Wells Fargo struggled, falling 4.6% after reporting a $2.4 billion loss and slashing its dividend to 10 cents per share from 51 cents per share.

“What’s so influential about the banks reporting early in the earnings season in times like these is we’re really counting on banks’ management team’s view on what’s going on,” Susan Schmidt, head of U.S. equities at Aviva Investors, told CNBC. “Banks are the foundation of our U.S. economy. They are there to provide loans to small businesses and to manage the retail consumers’ deposits.”

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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7/14/20

S&P 500 Sector Graph

Bank Earnings Reveal State of Economy

S&P 500 (SPY)

Bank Earnings Reveal State of Economy

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Bank Earnings Reveal State of Economy

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Bank Earnings Reveal State of Economy

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Bank Earnings Reveal State of Economy

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Bank Earnings Reveal State of Economy

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Bank Earnings Reveal State of Economy

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Bank Earnings Reveal State of Economy

Utilities (XLU)

S&P 500 Sector Heat Map

 

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