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Pre-Markets Up After Nasdaq, S&P Selloff; AXP, SLB, CMA Report
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Yesterday’s pullback on the Nasdaq and S&P 500 brought an end to a solid streak of daily market gains this July, at least temporarily. The Dow notched its winning streak to nine-straight sessions, helping the index keep up with its faster-growing brethren. In this morning’s pre-market, the Dow is +88 points, the S&P 500 is +20 and the Nasdaq is up a solid +100 points.
As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft (MSFT - Free Report) , Nvidia (NVDA - Free Report) , Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) , Meta (META - Free Report) and, of course, Tesla (TSLA - Free Report) — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). This is likely to cause a near-term disturbance in Nasdaq futures and, if yesterday’s -2% selloff was part of this, it already has.
We don’t have any major economic reports out this morning, but next week brings us plenty: Manufacturing and Services PMI; Case-Shiller home prices; Durable Goods; Advanced Retail, Wholesale and Trade in Goods; Pending Home Sales and next Friday’s big Personal Consumption Expenditures (PCE) report for June. Sandwiched mid-week is the next Fed meeting, where odds are still good another 25 basis-point (bps) rate hike will be forthcoming. A Fed funds rate of between 5.25-5.50% would be the highest we’ve seen since March of 2001.
American Express (AXP - Free Report) posted mixed Q2 earnings this morning, with earnings of $2.89 per share outpacing the Zacks consensus by 9 cents, on record-high revenues of $15.05 billion, which missed the $15.52 billion estimate by -2.34%. The credit card giant is still up nicely on the top line from $13.4 billion posted a year ago, but shares are selling off in the pre-market on the news, -3%. Year to date, the company has been relatively in line with the S&P overall. For more on AXP’s earnings, click here.
Oilfield services leader Schlumberger (SLB - Free Report) was also mixed in its Q2 results this morning, beating on the bottom line by a penny to earnings of 72 cents per share on top-line sales of $8.1 billion, below the $8.23 billion projected (though up from the $6.77 billion reported in the year-ago quarter). Shares are selling off -2.4% on the news, working off the +7% gains the company had made in the market year to date. For more on SLB’s earnings, click here.
Zacks Rank #5 (Strong Sell)-rated Comerica (CMA - Free Report) posted surprise beats on both top and bottom lines this morning, with earnings of $2.01 per share easily ahead of the $1.89 in the Zacks consensus, on $924 million in revenues which outperformed the $904.8 million analysts were expecting, This is now the fifth-straight quarter the Texas-based financial services firm has surpassed earnings expectations. For more on CMA’s earnings, click here.
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Pre-Markets Up After Nasdaq, S&P Selloff; AXP, SLB, CMA Report
Yesterday’s pullback on the Nasdaq and S&P 500 brought an end to a solid streak of daily market gains this July, at least temporarily. The Dow notched its winning streak to nine-straight sessions, helping the index keep up with its faster-growing brethren. In this morning’s pre-market, the Dow is +88 points, the S&P 500 is +20 and the Nasdaq is up a solid +100 points.
As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft (MSFT - Free Report) , Nvidia (NVDA - Free Report) , Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) , Meta (META - Free Report) and, of course, Tesla (TSLA - Free Report) — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). This is likely to cause a near-term disturbance in Nasdaq futures and, if yesterday’s -2% selloff was part of this, it already has.
We don’t have any major economic reports out this morning, but next week brings us plenty: Manufacturing and Services PMI; Case-Shiller home prices; Durable Goods; Advanced Retail, Wholesale and Trade in Goods; Pending Home Sales and next Friday’s big Personal Consumption Expenditures (PCE) report for June. Sandwiched mid-week is the next Fed meeting, where odds are still good another 25 basis-point (bps) rate hike will be forthcoming. A Fed funds rate of between 5.25-5.50% would be the highest we’ve seen since March of 2001.
American Express (AXP - Free Report) posted mixed Q2 earnings this morning, with earnings of $2.89 per share outpacing the Zacks consensus by 9 cents, on record-high revenues of $15.05 billion, which missed the $15.52 billion estimate by -2.34%. The credit card giant is still up nicely on the top line from $13.4 billion posted a year ago, but shares are selling off in the pre-market on the news, -3%. Year to date, the company has been relatively in line with the S&P overall. For more on AXP’s earnings, click here.
Oilfield services leader Schlumberger (SLB - Free Report) was also mixed in its Q2 results this morning, beating on the bottom line by a penny to earnings of 72 cents per share on top-line sales of $8.1 billion, below the $8.23 billion projected (though up from the $6.77 billion reported in the year-ago quarter). Shares are selling off -2.4% on the news, working off the +7% gains the company had made in the market year to date. For more on SLB’s earnings, click here.
Zacks Rank #5 (Strong Sell)-rated Comerica (CMA - Free Report) posted surprise beats on both top and bottom lines this morning, with earnings of $2.01 per share easily ahead of the $1.89 in the Zacks consensus, on $924 million in revenues which outperformed the $904.8 million analysts were expecting, This is now the fifth-straight quarter the Texas-based financial services firm has surpassed earnings expectations. For more on CMA’s earnings, click here.
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