THE GIST (“THE WHAT”)
Oscillating around the 4400 level, the S&P 500 index traded sideways within a tight range as investors keenly look forward to the start of the second quarter earnings season and crucial inflation data releases this week to gauge the Fed’s interest rate path. The index managed to eke out moderate gains of 10.58 points (0.24%), closing the choppy session at 4409.54.
Note: Our daily “S&P 500 Trading plan” will be posted around 9:30/10:00am EDT, every trading day.
Trading Plans for MON. 07/10: Preparing for the Earnings Season Kick Off Later this Week
For the last published Results of the Morning Trading Plans, please click here
THE DETAILS (The “How & Why”):
Yields moved lower ahead of the June’s CPI and PPI data release this week. The 10-year treasury bond yield fell 5.6 basis points to settle at 4.006%. Markets are broadly expecting the June CPI data to show declining price pressures that could likely influence the Fed’s monetary policy for the year. The second-quarter earnings season kick starts this week with JPMorgan Chase, Citigroup, and Wells Fargo releasing their closely watched results.
In today’s economic news, U.S. wholesale trade numbers fell unexpectedly by 0.2% month-over-month, as against the expected jump of 0.3%. Wholesale inventories were unchanged for the month of May following a decline in the prior month, suggesting that businesses are stockpiling fewer goods amid economic uncertainty.
Casino stocks were amongst the best performers of today’s choppy session. Wynn Resorts was the top gainer within the S&P 500 index, rallying 5.69% after JPMorgan Chase ungraded the sector citing resilient gaming revenues and strong demand outlook. MGM Resorts International also jumped 5.59% on strong industry outlook.
Amongst the decliners, FMC Corp was the worst performer of the session, tumbling 11.15% after the agricultural sciences company slashed its full-year revenue guidance significantly citing unprecedented cuts in channel inventory by its customers. Other producers of agricultural products also were sold off on this weaker outlook. Corteva Inc, Mosaic Co and CF Industries Holdings all closed lower by more than 2% each.