Equity Brief: U.S. stocks aren’t banking on earnings so far

The latest set of Big U.S. bank earnings are in sharp focus

Stock market snapshot as of [16/7/2019 1:39 PM]

  • The latest set of Big U.S. bank earnings are in sharp focus. As ‘ugly contests’ go, investors are having a hard time choosing which bank’s quarterly results they dislike least
  • This means earnings among high profile stocks are providing a small negative input into Tuesday’s Wall Street trade with the Dow a smidgeon higher and Nasdaq and S&P 500 down by vanishingly thin fractions too
  • European shares fare somewhat better, partly because the earnings slate in Europe has yielded some clearer outright successes on the day than Stateside

Corporate News

  • Burberry shone in Europe, rising 12%-14% as investors breathed a sigh of relief that new categories produced by a recently installed ‘star’ designer demonstrated strong traction. The Consumer Discretionary index rose 0.4%
  • Attention on the top-level earnings releases across the Atlantic in itself left European activity fairly subdued
  • Among the giant U.S. lenders, Goldman appears to have chalked up most successes compared to Citigroup, which reported on Monday and JPMorgan and Wells Fargo which also released results on Tuesday
  • JPMorgan trades slightly lower, whilst Goldman Sachs paces the bunch with a 2.2% rise. Wells Fargo adds 0.5% after its weak results at least showed it continued to grow its consumer businesses
  • All four banks have beat on the top line and most on the bottom line too. Earnings are messy though, and the underlying picture is less salubrious than the headline figures. As well, most of these banks are downgrading expectations into the rest of the year based on the expectation of lower Fed rates that will weigh on interest income. All told, banks are providing a somewhat negative beginning to the U.S. earnings season

Upcoming corporate highlights

Upcoming economic highlights


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.