THE GIST (“THE WHAT”)
The S&P 500 index edged higher as investors digest second quarter earnings. Financials and technology stocks gain ahead of the next round of earnings this week. The index closed the session with a modest gain of 17.37 points (0.39%) at 4522.78.
Note: Our daily “S&P 500 Trading plan” will be posted around 9:30/10:00am EDT, every trading day.
Trading Plans for MON. 07/17: Q2 Earnings to Come Under Microscope
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THE DETAILS (The “How & Why”):
The index continues to hover around its 15-month high as inflation shows initial signs of cooling and economy remains resilient. With quarterly earnings broadly expected to decline, investors will be reading closely into the company outlooks.
Bond yields fell after U.S. Treasury Secretary Yellen eased recessionary concerns, hinting that the country is on a good path of bringing inflation down without pushing the economy into a major recession. The 10-year Treasury yield slipped -3.3 basis points to settle at 3.799%.
Tech stocks rose alongside falling yields. On Semiconductor jumped 4.66%. Intel rose 3.68% following stock upgrade by Melius Research LLC. Lam Research, Microchip Technology, and Analog Devices all gained more than 2% each. Apple also gained 1.73% after Morgan Stanley raised its price target citing a bullish outlook on India as an emerging growth driver for the company.
Ford Motor tumbled 5.94% after the automaker slashed its prices of its F-150 Lightning electric trucks in the wake of weakening demand. In contrast, Tesla jumped 3.20% after the EV maker announced that it has built its first cybertruck four years after unveiling the prototype.
AT&T hit a 30-year low following stock downgrade by Citi citing risks ties to lead cables that the telecommunications giant left buried across the U.S. Verizon also tumbled 7.50% to hit its lowest level in 13 years.