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Tuesday, July 16

Some of the largest macro moves in the market today include: Oil (WTI) -1.9%. Ethereum -2.1%. USD/CNH +0.2%.

The US retail sales data for June showed no growth from the previous month. This stagnation in consumer spending is accompanied by a 0.5% drop in export prices and flat import prices, indicating potential headwinds for economic momentum.

In Canada, inflation eased to 2.7% year-over-year in June from May's rate of 2.9%, continuing its disinflation trend as predicted by the Bank of Canada (BoC). Additionally, Canadian housing starts fell significantly more than expected at -9%, driven primarily by declines in Ontario and British Columbia.

European markets are reacting to mixed signals; Germany’s ZEW Economic Sentiment Index dropped sharply while Italy posted a substantial trade surplus—the largest since July 2021—due mainly to reduced imports amid falling commodity prices like natural gas and crude oil.

IWM [+1.1%]
The iShares Russell 2000 ETF rose by +1.1% pre-market, driven by expectations of a Federal Reserve rate cut following soft June consumer price inflation and favorable conditions for "rate-sensitive cyclicals." Small-cap stocks rallied as the IWM outperformed large caps amid easing rate pressure and emerging earnings support from smaller companies in the market. Notable increases were seen among top contributors to performance like RVMD (3.0%) and ONTO (1.21%), with positive sentiment towards Sweetgreen Inc reflected through upgraded ratings and increased price targets ranging between $17.00 to $45.00 due to dynamic market conditions and recent financial indicators supporting future growth prospects amidst significant revenue increase over three months ending on March 31st, 2024.

USO [-1.9%]
The price of Oil (Brent) has decreased by -1.8% since Monday's market close, aligning with Russia's crude exports dropping to their lowest levels since January amidst concerns about future availability due to potential supply constraints and tightening global oil supplies that may support higher prices, reflecting the current state of global oil markets during today’s trading session. United States Oil Fund LP's performance is in the lowest 3rd percentile of returns by this time of day.

SCHW |-4.8%|-6.3B
Charles Schwab Corp reported strong Q2 results, beating earnings estimates with an EPS of $0.73 and revenue of $4.69 billion while noting a rise in total client assets and core net new assets by 17%. However, concerns over falling short on key metrics like total net new assets at $74.2 billion versus the estimated amount led to a -4% premarket stock price drop despite surpassing expectations overall for the quarter due to lower-than-expected brokerage accounts opened.

MS | -2.7% | -4.5B
Morgan Stanley's stock price dropped by -2.7% following the release of their Q2 earnings report, which surpassed expectations with notable increases in net income and a higher dividend per share. The company also executed a buyback of 8 million shares for $750 million during the quarter, coinciding with an increase in quarterly common stock dividends to $0.925 from $0.85 per share as part of positive second-quarter results that beat both revenue and EPS estimates released Tuesday morning.

UNH |+2.7%|+13.0B
UnitedHealth Group Inc's stock price rose by +2.7% in the pre-market session after reporting strong Q2 results, including an adjusted EPS beat at $6.80 versus analysts' estimate of $6.66 and a notable increase in total revenues to $98.86 billion from last year's figure as well as reaffirming their 2024 adjusted EPS outlook between$27 .50-$28 per share despite challenges such as cyberattack impacts leading them to raise initial estimates due financial support initiatives for care providers and higher consumer notification costs than previously anticipated while navigating operational changes like selling off remaining South American operations impacting forecasts slightly but still within expected ranges given recent events such as cyberattacks this year.

BAC |+1.6%|+5.4B
Bank of America Corp reported a notable increase in Q2 profit, with net charge-offs rising significantly year-over-year primarily due to the credit card business and commercial real estate office sector. Despite these figures, the company's earnings beat estimates at 83c per share compared to an expected 80c, while plans for an increased quarterly common stock dividend pending board approval are set at $0.26 per share. Expectations include growth in net interest income going forward as well as a positive outlook on sales and trading activities supported by excess capital reserves held by Bank of America Corp amidst its strong financial performance across investment banking revenues and trading activities this quarter alongside Warren Buffet's significant portfolio allocation towards the bank showing promising premarket gains post-Q2 earnings announcement earlier today.

DJT |-8.7% | -568.1M
Digital World Acquisition Corp's stock dropped -8.9% following Trump Media & Technology Group filing for the resale of over 37.96M shares, including a Standby Equity Purchase Agreement with Yorkville worth up to $2.5B in share purchases directed by Donald Trump Jr., potentially impacting investor sentiment after initial gains related to news on former President Donald Trump yesterday morning before market open. Social media activity highlighted growth potential and regulatory concerns due to high-profile connections but also emphasized ambitious plans beyond traditional finance sectors, reflecting mixed sentiments around the stock amid recent developments leading into today's pre-market session.

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