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S&P in Range of All-Time Highs, Vol Subdued as Financials Kick Off Quarterly Earnings

EQUITIES
  • Headline equity indices had trouble yesterday mounting a material test on the cycle high for the e-mini S&P at 4841.50, which remains the bull trigger headed through the beginning of the earnings season. 6.5% of the index is set to report across today and next week, and over 50% of the index will have reported by Feb 1st.
  • Flow of earnings today is very financials focused, and should proceed as follows:
  • ~1100GMT/~0600ET – BlackRock
  • ~1130GMT/~0630ET – Bank of New York Mellon
  • 1145GMT/0645ET - Bank of America
  • 1200GMT/0700ET – Wells Fargo
  • 1200GMT/0700ET – JP Morgan
  • 1300GMT/0800ET – Citigroup
  • Mixed performance expected among financials, with volatile markets countered by slowing interest income growth. Meanwhile, equity implied vol remains under pressure, evident in the persistent pullback in the VIX across Q4 last year (settling at levels last seen in 2019, pre-pandemic) – and a new contract low for the F4 VIX future yesterday at 12.95 points.
  • Full schedule, including timings, EPS and revenue expectations here: https://roar-assets-auto.rbl.ms/files/59406/MNIUSE...

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