Those traders who found Monday’s action dull may focus elsewhere today.
Like scooping up deep discounts on stuff they might not really need, as yet another Amazon Prime Day dawns.
With barely any data on tap and Fedspeak from Chairwoman Janet Yellen not due until tomorrow, counting the e-commerce giant’s wins may be the main event.
🎶🎶On the first hour of Prime Day, my true love ordered me, an ink cartridge made by HP🎶🎶
— Prof. Jeff Jarviss (@ProfJeffJarviss) July 10, 2017
Against that backdrop, it’s probably not surprising that some are more than ready for Friday, when big banks deliver earnings. Among the S&P 500’s sectors, banks and energy are some of the biggest contributors to overall EPS, as Morgan Stanley points out here:
But our call of the day, which comes from Panmure Gordon’s David Buik, is a reminder that investors should take care with banks as the shine has come off the sector for a couple of reasons.
Blame dull days like Monday, for one: “Profit forecasts for several of the biggest U.S. banks including Citigroup, Goldman Sachs and Morgan Stanley have taken a fall as concerns mount that a dearth of dealing in markets is leaving trading desks idle,” Buik writes.
And less punchy forecasts for Citibank C, -0.38% , J.P. Morgan JPN, -0.27% and Bank of America BAC, +0.24% offer evidence that “some of the buzz for banks has fizzled,” says Buik. Of course, much of that buzz was political and now questions hang over that reflation trade.
With Citi, Wells Fargo and JPM, up 39%, 22% and 18%, respectively, since the Nov. 8 election, investors may want to ask just how much pizazz these stocks have left, according to Buik. Goldman GS, +0.25% , he notes, is already down about 5% since the start of the year.
Key market gauges
Futures for the Dow YMU7, -0.07% , S&P ESU7, -0.08% and tech stocks NQU7, -0.16% are going nowhere. Asian markets ADOW, +0.73% had an upbeat day, thanks to gains for tech stocks, while Europe SXXP, -0.44% is sagging a bit. Oil prices CLQ7, -1.04% aren’t proving resilient when it comes to holding Monday’s rebound. Gold GCQ7, -0.24% is slipping.
See the Market Snapshot column for the latest action.
Job-openings are coming at 10 a.m. Check out MarketWatch’s preview of the week’s data, including consumer prices and retail sales later in the week.
“We revise down our short- and medium-term forecasts. Our price forecast to 2020 is now more bearish than consensus estimates but more bullish than the curve. We are bullish on medium-term oil prices.” That’s Michael Cohen and the team from Barclays who cut their 2020 Brent oil forecast all the way down to $55 a barrel, from a prior $82.
Using history as a guide, Barclays says prices have remained under pressure as the market adjusts to a new type of supply, adding: “The age of shale will be no different.”
Chin up, though as that oil forecast jumps to $70 by 2025.
“Beans are about waist-high, and there wasn’t much sticking out above the beans.” — That was Andy Jones, who witnessed the deadly crash of a U.S. Marines plane in rural Mississippi Monday evening. Jones said the force of the crash nearly flattened the plane in the accident that left at least 16 people dead.
Justin Bour: 22 home runs ⚾️
— SportsRhetorik™️️ (@SportsRhetorik) July 11, 2017
47 — That’s how many home runs Aaron Judge knocked out last night in the All-Star Home Run Derby, leaving jaws open as he outslugged some of the biggest stars. His home runs totaled 3.9 miles, and the longest drive went 513 feet. He topped the 500-feet mark four times.
Hold my coffee? Your daily addiction means a longer life.
Study shows Earth’s sixth mass extinction is underway and pretty serious
U.S. soldier arrested in Hawaii over ISIS ties, threats to kill “a bunch of people”
Incredible human chain saves 9 members of the same family from drowning
The obituary to end all obituaries.
Shaking a fist at Prime Day? Make sure the other hand is clutching a free Slurpee:
— Laura Hutchinson (@LauraHutch8) July 11, 2017
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