On top of strong earnings reports from $JPMorgan Chase(JPM)$ , $Wells Fargo(WFC)$ , $Delta Air Lines(DAL)$ and positive economic data from last week，US stocks rose. While judging from the results of financial stocks on last Friday, the results were mixed.
Positive: Large institutions such as $JPMorgan Chase(JPM)$ and $Wells Fargo(WFC)$ benefited from the boost in consumer business, and their performance exceeded analyst expectations. Among them, $JPMorgan Chase(JPM)$ Chase reported a 67% increase in second-quarter profit and see stock price hit new highs.
Nagative: $Citigroup(C)$ , which is more reliant on investment banking, its revenue declined 1% YoY. Citigroup Chief Executive Jane Fraser said a long-awaited rebound in investment banking didn't materialize, leading to poor quarterly results. Shares fell more than 4% in response.
Last week, however, earnings from $Delta Air Lines(DAL)$ , $Pepsi(PEP)$ , $JPMorgan Chase(JPM)$ and $Wells Fargo(WFC)$ all topped analysts' expectations, but stock prices were muted.
This week's key Focus:
Tuesday's earnings reports from $Bank of America(BAC)$ and $Goldman Sachs(GS)$ will provide more information on the state of the U.S. financial system following this spring's banking crisis. Analysts expect investment banking of these banks to decline compared to the first quarter 2023, with Goldman Sachs CEO David Solomon's comments particularly noteworthy.
On Wednesday, $Tesla Motors(TSLA)$ and $Netflix(NFLX)$ will become the first tech giants to report their second-quarter results. The locomotive of the rise in US stocks this year has been the large technology companies, so their earnings reports have also attracted much attention.
$Tesla Motors(TSLA)$ have risen nearly 130% this year, driven by the AI boom, strong vehicle delivery numbers and a rapidly expanding charging network.
Goldman Sachs analyst Mark Delaney noted on Thursday that the focus of the earnings report will be on non-GAAP auto gross margins as investors worry that recent price cuts could hit the company's bottom line.
Victoria Fernandez, chief market strategist at Crossmark Global Investments, also said that what they really care about is profit margins, which reflect the company's pricing power.
Shares of $Netflix(NFLX)$ are up 50% this year, a much smaller gain. The company's streaming business appears to have reached an inflection point, so investors will be keen to see how the latest Hollywood strike will affect the company's business plans.
Earnings for $S&P 500(.SPX)$ are expected to fall by 7% this quarter. Ross Mayfield, an investment strategist at Baird, said that the earnings beat will be enough to maintain the stock's vested gains, but to continue to rise, it may need earnings results to beat expectations significantly or revenue and earnings beat expectations. Let's look forward to it together.
Comments
The first half of 2023 surprised almost everyone...
We see persistent fears of a recession... several of the biggest bank failures in U.S. history... and the Federal Reserve, which keeps raising interest rates.
Despite these disadvantages, the US stock market soared. This $S&P 500 (. SPX) $in the first half of this year, the index rose 17%. Since 1998, we have only seen another first half of this year reach this level.
Interestingly, however, this strong performance did not dazzle most investors. They are still worried about the dark clouds on the horizon. But historically, they should not be overly bearish for a long time.
That's because $S&P 500 (. SPX) $performed very well in the first six months of this year. That means the good times will continue... the stock market could hit new highs this year.
We can even see a total increase of 19% in the next 12 months. This means that you want to own stocks today.
Let me explain...
The 15% increase in the first half of the year is not common. Since 1950, this has happened only 10 times, or about once every seven years.
However, today's situation is even rarer. That's because the market lost money last year... and then reversed gains of more than 15pc in the first half of 2023.
This recovery has almost never happened. In the past 73 years, we have only seen four other examples. But it's happening right now. Take a look at...
This $S&P 500 (. SPX) $staged an incredible rally after last year's pain. The overall loss in 2002 was 18%. So far this year, we have made up for most of it.
Most importantly, the stock market only needs to rise by 8% to reach a new high. According to this extreme situation, this may happen in 2023.
To understand this, I looked at every example of a stock falling in one year and rising by more than 15% in the first half of the following year. This has happened only four times since 1950. These examples have brought impressive long-term returns. Check carefully...
Since 1950, the stock market has returned 7.9% a year. But you can do much better than buy and hold the return. You just need to buy at the right time.
Buying after a similar setup led to a 9.7% rise in six months and an 18.9% rise the following year. Amazing returns like this show the power of investing in a trend that is favorable to you.
What's more, if we see a 9.7% rise at the end of this year, the US stock market will hit a new high. Back in January, few would have thought it was possible. But today, it's not just a possibility... very likely.
You may still feel uneasy about putting money into work.
History clearly shows this situation... the trend is rising. We want to bet on a higher price now.
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Great ariticle, would you like to share it?
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?