Big bank earnings continued to capture headlines this week
This week, the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX) and Nasdaq Composite (IXIC) continued their run higher on the charts — with a few brief drops sprinkled in — thanks to a slew of big name earnings taking over the Street. The Dow and S&P 500 logged a string of record closes, sending both toward their longest weekly win streak since December. Economic data including retail sales, a jump in small caps, and a surge in tech and chip pushed the Nasdaq to within a chip-shot of record high territory, though it failed to officially meet the mark. Amid this volatility, the Cboe Volatility Index (VIX) moved between either side of its key 20 level.
Big Banks, Blue Chips Flood Earnings
Banks kicked off a second week of reporting, with another round of big financial leaders entering the confessional. Morgan Stanley (MS) paved the way with a post-earnings pop, echoing peer Goldman Sachs (GS), which climbed to a record peak after its own positive report.
Meanwhile, blue chip stocks made their own noise on the earnings calendar, with the likes of pharma leader Johnson & Johnson (JNJ) facing off with post-earnings resistance. CVS Health (CVS) shared a CEO swap and lackluster earnings preview, pulling its full-year forecast. Not to be forgotten, chip master Taiwan Semiconductor (TSM) led market gains Thursday, reaching a record peak after reporting a quarterly beat.
Small Caps Can’t Be Overlooked
Small caps having been making a name for themselves, the Russell 200 Index (RUT) reclaiming its $2,000 level and providing a solid foundation this past summer. Bitcoin (BTC) saw a lift of its own, surging above $66,000 for the first time in weeks, pushing two big crypto names higher in response.
For a few stocks that will go easy on your wallet, a pair of this week’s big names trading under $20 include insurance name Lemonade (LMND) and battery developer Enovix (ENVX). For a look at more pharma, Novavax (NVAX) and Moderna (MRNA) were making moves as they continued to progress through the respiratory syncytial virus (RSV) vaccine movement.
Don’t Expect an Earnings Slowdown Anytime Soon
Earnings season remains in full swing next week, with several blue chips still waiting for their turn in the confessional. The likes of 3M (MMM), Coca-Cola (KO), IBM (IBM), and Verizon (VZ) are due to make their mark, while American Airlines (AAL), Hilton Worldwide (HLT), Keurig Dr Pepper (KDP), Southwest Airlines (LUV), Tesla (TSLA), and T-Mobile (TMUS) are other big names also on the docket. Economic news will move at a slower pace, though the regular jobs report and several U.S. Federal Reserve speeches are expected.
Make sure to check out Schaeffer’s Senior Quantitative Analyst Rocky White’s breakdown of what it means if the broader S&P 500 is outperforming popular commodities, as well as Senior V.P. of Research Todd Salamone’s look into expiration week upsides and downsides.