Welcome Back,

Bank earnings and a big day over at $MSFT!

Market Headlines 👀 

• US MoM Retail sales came in at +0.2%; est: 0.5%.

• Microsoft (MSFT) announces Copilot - their enterprise offering integrating AI features accross its office products.

• US Funds see limits being hit as tech shares rise due to weighting rules and methodology.

• MongoDb (MDB, MSFT) announce an expansion of their multi-year partnership to enable customers a streamlined approach in their cloud adoption journey.

• Warner Music Group (WMG) partners with TikTok on music licensing deal.

• Facebook (META) is releasing its commercial version of their AI model, Llamma for businesses and startups to begin using.

• Chipotle (CMG) signs first ever franchise partner to open new locations in the Middle east.

• US loan applicants saw a 21.9% rejection rate through June (trailing 12 months), highest rate in the last 5 years.

• US Congress is looking to narrow investment limits and investments made in China, specifically in certain tech sectors.

• SpaceX forecasts revenue doubling this year up to $8b.

• Traders have now priced in a 25bps rate hike by the US Fed next week.

Earnings 💸

• Lockheed Martin (LMT)

  • EPS: $6.73 beats (exp. $6.45)

  • Revenue: $16.7b beats (exp. $15.89b)

• Bank of America (BAC)

  • EPS: $0.88 beats (exp. 0.84)

  • Revenue: $25.2b beats (exp. $25b)

• Charles Schwab (SCHW)

  • EPS: $0.75 beats (exp. 0.71)

  • Revenue: $4.66b beats (exp. $4.62b)

• Morgan Stanley (MS)

  • EPS: $1.24 beats (exp. $1.23)

  • Revenue: $13.5b beats (exp. $13.03b)

  S&P 500 Heat Map

Recap Around the Street 🧠

Per Bob Elliott, this has been a nominal income driven economy that’s going to accelerate should wages remain elevated while inflation is decelerating. Could keep the Fed tighter for longer unless productivity meaningfully picks up. (Contributed by Benjamin Lavine, CIO at 3D/L Capital).

2Q EPS revisions are mainly backward looking at this point as investors will focus more on forward guidance due to more optimistic 2nd half outlook now that recession risk has dissipated. (Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• 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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