Friends
We had a trio of very good earnings reports this morning, but only one winner in terms of stock price. Both JP Morgan Chase and Goldman Sachs had excellent earnings reports but their shares moved lower as the good news appears to have been priced in already. On the other hand Pepsi also had a very good earnings report and the shares of the beverage and snack company moved to new all-time highs. So as we always point out it’s not just the earnings report itself, but how the stocks react to the news.
As for the overall market, by the close the Dow Jones Industrial Average was down 107 points to finish the day at 34,888. The S&P 500 was down 15 points to close at 4,369. The Nasdaq Composite Index was down 55 points to close at 14,677. Gold was up $1 to trade at $1,807 per ounce, while oil was up $1.22 to trade at $75.32 per barrel WTI.
On the inflation front, the CPI number was hotter than expected and by the close the bond market did sell off a bit, but for the most part there wasn’t much of a reaction to the number.
We sent out our outlook for the 3rd quarter earlier today. We’ve attached it here also in case you missed it. In the meantime we’ll continue to monitor corporate earnings.
Have a nice evening everyone.
