Welcome Back,

Earnings season ramps up with some big tech earnings this week! Most notably Tesla and Netflix.

Market Headlines 👀 

• US Treasury Secretary Yellen speaks while attending the G-20 summit and is not concerned by China slowdown, and does not see a US recession.

• Tesla (TSLA) begins Cybertruck production in Giga Texas facility.

• Microsoft (MSFT) FTC loses appeal to block Microsoft and Activision Blizzard deal.

• Tesla (TSLA) lays out plan to make one of the largest auto factories in Germany.

• Twitter (TWTR) reports from Elon Musk, Twitter cash flow is still negative and company has seen a 50% drop in ad revenue.

• China sees Q2 GDP come in at 6.3%, below expectations from the street.

• Ford (F) cuts prices on its electric F-150 by up to $10,000.

Earnings 💸

• Nothing notable for today! Keep an eye for some big ones tomorrow; Tuesday earnings: Bank of America (BAC), Lockheed Martin (LMT), Morgan Stanley (MS), Charles Schwab (SCHW), and Interactive Brokers (IBKR).

  S&P 500 Heat Map

Recap Around the Street 🧠

Estimate revisions for the S&P and Nasdaq started to turn higher at the end of February and have only accelerated. At this point, commodity cyclicals and financials are seeing weaker outlooks. The issue comes down to valuation and whether elevated price multiples on future earnings have pulled forward too much of that expected growth recovery. (Contributed by Benjamin Lavine, CIO at 3D/L Capital).

This is a longer term range whose upper and lower bounds will likely be resolved by future margin and eps growth trends. (Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• Tuesday, July 18th: Retail sales; New York fed services business activity; industrial production

• Tuesday earnings: Bank of America (BAC), Lockheed Martin (LMT), Morgan Stanley (MS), Charles Schwab (SCHW), and Interactive Brokers (IBKR)

• Wednesday, July 19th: MBA mortgage applications; housing starts

• Wednesday earnings: Goldman Sachs (GS), Netflix (NFLX), Tesla (TSLA), ASML (ASML), United Airlines (UAL), International Business Machines (IBM), and Nasdaq (NDAQ)

• Thursday, July 20th: Weekly jobless claims; Philadelphia Fed business outlook; existing home sales

• Thursday earnings: American Airlines (AAL), Johnson & Johnson (JNJ), The Blackstone Group (BX), and Intuitive Surgical (ISRG)

• Friday, July 21st: Monthly OPEX options expiration

• Friday earnings: American Express (AXP)

•  Fed in blackout period ahead of FOMC meeting next week

That’s all for today, folks! We’ll be back around the same time tomorrow with a curated list of important news, economic data and market highlights. 

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