Dow Jones futures were little changed Wednesday morning while S&P 500 futures and Nasdaq futures rose as Apple (AAPL) continued to power higher. Bank of America (BAC) reported mixed results as earnings season kicks in.
Federal Reserve chief Jerome Powell will speak Wednesday.
The stock market rally retreated modestly Tuesday amid a hot inflation report even as Apple stock and Microsoft (MSFT) continued to hit record highs. Upwork (UPWK) broke out while Mastercard (MA) made a bullish move, offering an early entry.
Bank of America (BA) reported mixed second-quarter results early Wednesday. Earnings topped views, helped by a tax benefit, while revenue missed. Citigroup (C) and Wells Fargo (WFC) also are on tap before the open.
BAC stock fell 2% in the premarket while Citi and Wells Fargo edged lower.
Wednesday’s trio of bank earnings follow Tuesday results from Dow Jones giants JPMorgan Chase (JPM) and Goldman Sachs (GS). Both JPMorgan and Goldman earnings beat views, despite lower fixed-income trading revenue. JPMorgan released $3 billion from loan loss reserves, boosting profits. Meanwhile, the June consumer price indexes boosted the 10-year Treasury yield.
Goldman stock fell 1.2% and JPMorgan 1.5%. BAC stock and Wells Fargo lost about 2% while Citigroup slid 1.5%.
Delta Air Lines (DAL) reports Q2 results before the open. Delta stock slumped 3.55% on Tuesday, closing below its 200-day line as fears and restrictions related to the Delta Covid variant hit airlines, hotels and other travel-related stocks.
Overnight, DAL stock rose 1.5% ahead of Delta earnings.
Late Tuesday, American Airlines (AAL) said Q2 preliminary revenue was slightly above views, with positive cash flow for the first time since the pandemic started. AAL stock ascended nearly 3% in extended trade after slumping 3.9% on Tuesday.
Apple stock rose nearly 2% early Wednesday. Apple aims to boost iPhone production by 20% in 2021, Bloomberg reported Tuesday night. Apple iPhone chipmakers Qorvo (QRVO) and Skyworks (SWKS), both in cup-with-handle bases, advanced 1% in premarket trading.
The stock market rally continues to trade near record highs. However, the Nasdaq composite is starting to looking extended. The big-cap Nasdaq 100, which includes Apple, Microsoft stock, Amazon.com (AMZN), Facebook (FB) and Google parent Alphabet (GOOGL), is increasingly extended. Meanwhile, the breadth of the advance is looking somewhat weaker. Highly valued growth names in particular have come under pressure in July, as reflected in some ARK Invest ETFs. Tesla (TSLA), which has held up better than many ARK-type stocks, fell back Tuesday.
Dow Jones Futures Today
Dow Jones futures are flat vs. fair value. S&P 500 futures rose 0.1%. Nasdaq 100 futures…
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