Wall Street Week Ahead (SPX): More Gains For Indices, More Pain For China Names As Oil Stocks Gush

Republished By Plato

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Here is what you need to know on Tuesday, August 3:

Equity markets look set for yet more all time highs on Tuesday as the market shrugs off Monday’s woes. Earnings continue on their strong trajectory with a slight wobble from big tech last week. That could be the canary in the coalmine leading us lower as Apple, Facebook and Amazon are not exactly names to ignore and all are now well shy of all time highs. Other names are taking up the slack though and perhaps it is time for the small-cap Russell 2000 (IWM) names to shine. Covid cases continue to surge globally with Sydney extending its lockdown, Wuhan testing the entire population and the CDC issuing fresh mask-wearing guidance. It would appear that lockdowns are not going to work for the delta variant though with the latest evidence showing carriers have up to 1,000 more viral loads. Vaccines look to be the best bet and certainly, investors are thinking that way with Pfizer (PFE) Moderna (MRNA) and BioNTech (BNTX) all surging to record highs on Monday. BioNTech is up nearly 50% for July alone.

The summer lull has yet to set into the bond markets as Monday’s wobble is offset by a recovery in yields today, back to 1.18%. The dollar continues its recent weakening, this time consolidating just below 1.19 while Gold is at $1810. bitcoin is lower at $38,300.

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European markets are mostly positive, FTSE +0.5%, Dax -0.1% and EuroStoxx +0.3%.

US futures are higher, S&P +0.2%, Nasdaq +0.2% and Dow +0.3%.

SPY stock forecast and news

Fed hawk Bullard says “I want the end-of-crisis programs to start soon so the Fed can move in smaller steps rather than risking a “scramble” if high inflation lingers.

China launches a probe into auto semiconductor chip dealers.

BP posts better than expected earnings and increases dividend and stock buyback program.

Conoco Phillips (COP) also beats EPS $1.27 versus $1.13 estimate.

SolarEdge (SEDG) reported earnings ahead of estimates, shares up 13% premarket. Citi upgrades.

Clorox (CLX) missed on EPS and cut forecasts, shares down 11% premarket.

NetEase (NTES) down 7% on a negative article in WSJ re China and online gaming. TCEHY -6% and BILI also down 6%.

Bausch Health Companies (BHC) down 6% premarket on missing estimates for Q2 sales and cutting guidance.

Stellantis (STLA) up 5% premarket after results.

Under Armour (UA) up 4% as results come in ahead of estimates and raises full year forecast.

Eli Lilly (LLY) down 1% on missing EPS by 2c, revenue was ahead of forecasts.

Mariott (MAR) beat on EPS but revenue slightly behind despite doubling year on year. Down 1% premarket.

Li Auto (LI) down 2% premarket on company filing for a share offering.