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Earnings Drive Banks Higher; NASDAQ Rebalance Due

EQUITIES
  • US equity markets start the session well, with the positive cash open helping tip e-mini S&P futures again to fresh contract highs of 4556.75.
  • Earnings are now a key driver after some of the biggest banks reported today: Wells Fargo and JPMorgan are already among the session's best performers. Energy names are the laggards, faltered after the pullback in WTI and Brent crude prices this morning.
  • Recall that later today the NASDAQ 100 rebalance update is set for release, where weightings of the index are set to be adjusted in order to "address overconcentration in the index by redistributing the weights."
  • The adjustments are seen most impacting Microsoft, Apple, Nvidia, Tesla, Alphabet, Meta and Amazon, who make up over 50% of the NASDAQ 100 weightings at present.
  • The weighting changes are set to be announced today, becoming effective on July 24th.

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