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Equities Roundup: Latest Earnings Cycle Underway

US STOCKS
  • The latest earnings cycle kicked off in earnest Friday morning, large banks beating estimates helped SPX Eminis climb to the highest levels since mid-April 2022 Friday morning. Stocks have since receded from midmorning highs, to near the middle of the session range, S&P E-Mini Future are up 11 points (0.24%) at 4554.75, DJIA up 136.4 points (0.4%) at 34529.48, Nasdaq up 64.8 points (0.5%) at 14203.67.
  • While BlackRock, JP Morgan, Wells Fargo, State Street and Citigroup all beat estimates this morning, Financial sector shares lagged gains in Health Care, Information Technology and Consumer Discretionary sector shares.
  • Leading gainers: Health Care buoyed by UnitedHealth Grp after beating earnings estimates this morning (2Q adj $6.14 vs. $5.95 est), UNH shares up 6.6% at midday. Other health services share gains included Elevance Health +4.85%, Cigna +4.25% and Humana +2.5%.
  • Information Technology shares continued to gain as demand by AI applications remains supportive of semiconductor shares: Advanced Micro Devices 4.45%. Nvidia +2.75%, Applied Materials +1.3%.
  • Laggers: Energy and Materials sectors underperformed, partly due to decline in crude (WTI -1.39 at 75.50) and Gold on the day (-1.50 at 1960.0). APA -4.6%, Marathon -3%, Devon Energy -2.95%; Miners: Nucor -2.75, Freeport McMoRan -2.3%.
  • Look ahead: Banks announcing next week: Bank of New York Mellon, Bank of America, Charles Schwab, Morgan Stanley, Citizens Financial, M&T Bank, Northern Trust, US Bancorp, Goldman Sachs, Discover Financial, Fifth Third Bancorp, KeyCorp, Truist Financial, Capital One, Comerica, Huntington Bancshares and American Express.

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