The S&P 500 Index ($SPX) (SPY) today is up +0.32%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.45%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.30%.
Stock indexes today are moving higher, with the Dow Jones Industrials posting a new all-time high. Positive corporate news is boosting stocks today, with Bank of America up more than +3% after reporting better-than-expected Q2 net interest income and forecasting Q4 net interest income above consensus. Also, Match Group is up more than +7% after Starboard Value said it has built a 6.6% stake in the company. In addition, UnitedHealth Group is up more than +4% after forecasting full-year adjusted EPS above consensus. Stock indexes extended their gains after US June retail sales rose more than expected, a sign the economy is holding up.
On the negative side for stocks, Charles Schwab is down more than -6% after reporting fewer-than-expected new accounts in Q2. Also, Morgan Stanley is down more than -1% after reporting below-consensus Q2 net revenue for its wealth management segment. In addition, energy stocks are under pressure as the price of WTI crude fell to a 3-week low.Â
US June retail sales were unchanged m/m, stronger than expectations of a -0.3% m/m decline. Also, June retail sales ex-autos rose +0.4% m/m, stronger than expectations of +0.1% m/m.
The US June import price index ex-petroleum unexpectedly rose +0.2% m/m versus expectations of a -0.2% m/m decline.
The markets are discounting the chances for a -25 bp rate cut at 7% for the next FOMC meeting on July 30-31 and 100% for the following meeting on September 17-18.
Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.63%. China's Shanghai Composite closed up +0.08%. Japan's Nikkei Stock 225 Index closed up +0.20%.
Interest Rates
September 10-year T-notes (ZNU24) today are up +6 ticks.  The 10-year T-note yield Is down by -2.1 bp at 4.208%. Sep T-notes today are mildly higher, garnering carryover support from rallies in European government bonds. T-notes fell back from their best levels on the stronger-than-expected US retail sales and import price reports, which were hawkish for Fed policy.
European government bond yields today are moving lower. The 10-year German bund yield fell to a 2-1/2 week low of 2.417% and is down -3.2 bp at 2.440%. The 10-year UK gilt yield fell to a 3-week low of 4.048% and is down -2.2 bp at 4.078%.
The German Jul ZEW survey expectations of economic growth fell -5.7 to a 4-month low of 41.8, stronger than expectations of 41.0.
Swaps are discounting the chances of a -25 bp rate cut by the ECB at 3% for the July 18 meeting and 81% for the September 12 meeting.
US Stock Movers
Bank of America (BAC) is up more than +3% after reporting Q2 net interest income of $13.86 billion, better than the consensus of $13.81 billion and forecasting Q4 net interest income of $14.50 billion, above the consensus of $14.33 billion.Â
Match Group (MTCH) is up more than +6% to lead gainers in the S&P 500 after Starboard Value said it has built a 6.6% stake in the company.
UnitedHealth Group (UNH) is up more than +4% to lead gainers in the Dow Jones Industrials after forecasting full-year adjusted EPS of $27.50-$28.00, stronger than the consensus of $27.48.
DoorDash (DASH) is up more than +2% to lead gainers in the Nasdaq 100 after Wolfe Research initiated coverage on the stock with a recommendation of outperform and a price target of $130.
Epam Systems (EPAM) is up more than +4% after Jeffries upgraded the stock to buy from hold.
Datadog (DDOG) is up more than +1% after Mizuho Securities upgraded the stock to outperform from neutral with a price target of $155.
Cooper Cos (COO) is up more than +1% after Jeffries upgraded the stock to buy from hold with a price target of $115.
Energy producers are sliding today as the price of WTI crude is down more than -1% at a 3-week low. As a result, ConocoPhillips (COP), Diamondback Energy (FANG), Valero Energy (VLO), and Phillips 66 (PSX) are down more than -1%. Also, Chevron (CVX) is down more than -1% to lead losers in the Dow Jones Industrials.
Charles Schwab (SCHW) is down more than -7% to lead losers in the S&P 500 after reporting that it added 985,000 new accounts in Q2, below the consensus of 1.04 million.Â
Reddit (RDDT) is down more than -3% after Loop Capital Markets downgraded the stock to hold from buy.Â
Zscaler (ZS) is down more than -2% to lead losers in the Nasdaq 100 after Mizuho Securities downgraded the stock to neutral from buy.
Morgan Stanley (MS) is down more than -1% after reporting Q2 wealth management net revenue of $6.79 billion, below the consensus of $6.86 billion.Â
Palantir (PLTR) is down more than -1% after Mizuho Securities downgraded the stock to underperform from neutral with a price target of $22.Â
Earnings Reports (7/16/2024)
Bank of America Corp (BAC), Charles Schwab Corp/The (SCHW), JB Hunt Transport Services Inc (JBHT), Morgan Stanley (MS), Omnicom Group Inc (OMC), PNC Financial Services Group Inc (PNC), Progressive Corp/The (PGR), State Street Corp (STT), UnitedHealth Group Inc (UNH).
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On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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