Stocks brace for earnings reports from global giants this week

Stocks were higher Monday as Wall Street braced for quarterly reports from some of the biggest companies in the world.

This includes reports financial institutions, such as Bank of America, Morgan Stanley and Goldman Sachs.

Results are also due from United Airlines, Las Vegas Sands and technology giants Tesla and Netflix.

Overall, the Dow Jones Industrial Average traded added 76.32 points, or 0.22 per cent to end at 34,585.35 — its highest closing level in 2023. The S&P 500 climbed 0.39 per cent to finish the session at 4,522.79, while the Nasdaq Composite advanced 0.93 per cent to 14,244.95.

Shares of tech-giant Apple added 1.7 per cent, while Tesla climbed 3.2 per cent. Shares of JPMorgan Chase ticked up 2.4 per cent.

Wall Street expects a gloomy season with lower profits. Analysts forecast a more than 7 per cent decline in S&P 500 earnings from a year ago, according to FactSet.

This week also ushers in the Federal Reserve’s “blackout period” ahead of its July policy meeting. Traders anticipate a roughly 97 per cent chance the central bank increases interest rates later this month, after pausing hikes in June, according to CME Group’s FedWatch tool.

Stocks are coming off a winning week that saw the Dow Jones Industrial Average gain 2.3 per cent to notch its best weekly gain since March. The S&P 500 and Nasdaq Composite added 2.4 per cent and 3.3 per cent respectively.

The moves came on the heels of solid big bank earnings and softer inflation reports that lifted investor sentiment. That heightened some hopes the central bank may be able to tamp down inflation without tipping the economy into a recession.

In commodity news, Russia's decision to terminate a significant grain-export deal with Ukraine, a year into the agreement, has raised concerns about global food supplies and intensified tensions in the region.

Western leaders criticised the move as "unconscionable" and "cynical."

Meanwhile, Fitch Ratings' downgrade of Mexico's state-owned oil company, coupled with a negative debt outlook, resulted in Mexican oil bonds experiencing the largest decline in Latin America on Monday.

Overall, US sectors were mixed overnight. Tech was the best performer, whilst Utilities was the worst.

Futures

The SPI futures are pointing to a 0.3 per cent fall.

Currency

One Australian dollar at 7:20 AM was buying 68.20 US cents.

Commodities

Gold lost 0.41 per cent. Silver fell 0.70 per cent. Copper dropped 2.26 per cent. Oil fell 1.68 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 0.38 per cent, Frankfurt lost 0.23 per cent, and Paris closed 1.12 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei and Hong Kong’s Hang Seng were closed while China’s Shanghai Composite closed 0.87 per cent lower.

The Australian sharemarket closed 0.06 per cent lower at 7299.

Ex-dividends

Metcash (ASX:MTS) is paying 11 cents fully franked

Dividends payable

K2 Asset Management Holdings (ASX:KAM)
US Masters Residential Property Fund (ASX:URF)
Red Hill Minerals (ASX:RHI)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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