Page One
Briefing.com Summary:
*Mixed earnings reactions show disconnect between results and stock moves.
*Market direction uncertain amid a lack of "new" macro drivers.
*Dow components McDonald's (MCD), Walt Disney (DIS), and Amgen (AMGN) among the earnings headliners.
We've reached Hump Day already this week, and it remains to be seen if the stock market is going to get over the hump or slide back down it. Monday's session was all about the climb, while Tuesday's session was all about the backsliding.
Today's session looks poised to start with the indices back in the saddle, but not really sure how they want to ride.
Currently, the S&P 500 futures are up 12 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 43 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are up 132 points and are trading 0.3% above fair value.
There isn't much going in the way of "new" macro drivers today. Instead, the price action is circulating on earnings news, which, again, was mostly better than expected in terms of the June quarter results. That doesn't mean, however, that the reactions to the earnings news were all positive.
By and large, the reactions have been mixed.
For instance, Adv. Micro Devices (AMD) posted in-line EPS results, exceeded revenue estimates, and issued upside revenue guidance for the third quarter. Its stock, which was up 128% from its April lows, is down 5.1% in pre-market trading. Uber (UBER) also posted in-line EPS results, beat on revenues, said it expects Q3 trip growth to be faster than Q2, and announced a $20 billion share repurchase program. Its stock, which was up "only" 47% from its April lows, is up 0.9%.
Dow components McDonald's (MCD), Walt Disney (DIS), and Amgen (AMGN) all surpassed second-quarter EPS estimates. MCD is up 3.9%, DIS is down 0.4%, and AMGN is basically flat. That triumvirate encapsulates the generally mixed tone ahead of the open.
The same dynamic is afoot in the Treasury market, which will be digesting a $42 billion 10-yr note auction today at 1:00 p.m. ET. The 2-yr note yield is unchanged at 3.72%, and the 10-yr note yield is up two basis points to 4.22%.
There isn't any economic data of note today, although the MBA's weekly mortgage applications index was up 3.1%, with purchase applications up 1.5% and refinance applications up 5.2%, spurred by the recent turn lower in market rates.
