Cboe's Weekly Market Recap: July 5th to July 8th

Following weeks of consistent bearish action, the markets took a slight breather last week. 

Despite the Federal Reserve’s decision to raise interest rates by another 75 basis points, stock market indices have rallied on the news. Specifically, the SPDR S&P 500 ETF SPY has experienced two weekly increases in three weeks for the first time since late March. The SPDR Dow Jones Industrial Average ETF DIA also exhibited this behavior.

Cboe Global Markets Inc. CBOE reports price ascensions in a number of U.S. funds tracking major indices, including the Nasdaq 100 Index, the Russell 2000 Index and the S&P 500 Index. Similar optimism is observed in some European stock markets, specifically in Germany’s DAX 30, while others have maintained bearish price action (albeit in a diminished capacity.)

Adding to the optimism, Charles V. Bergh’s Levi Strauss & Co. LEVI wins charts of the week following a surprise earnings report. 

Finally, Cboe notes important upcoming earnings that may lift investors’ eyebrows in the following week.

Quick Bites

Exchange-Traded Funds 

• The SPDR S&P 500 ETF increased 1.95% last week, representing the second weekly price ascension in the last three weeks.
• The Invesco QQQ Trust Series 1 QQQ increased 4.69% last week, rising to highs set last week at $296.58 a share.
• The iShares Russell 2000 ETF IWM increased 2.44% last week, following in the footsteps of macrocap indices.
• The Cboe Volatility Index™ VIX decreased 7.71% last week, representing the fourth consecutive week of decline.

World Markets

• The iShares Core MSCI European ETF IEUR increased 2.87% week-on-week.
• The iShares FTSE 100 ISF declined 0.16% week-on-week.
• The iShares Core DAX UCITS ETF EXS increased 1.55% week-on-week. 
• The Lyxor CAC 40 ETF CAC declined 0.74% week-on-week. 

Chart Of The Week: LEVI

This photo was taken from the TradingView platform

Shares of clothing retailer Levi Strauss & Co. climbed one point to 6.65% in the aftermarket hours as a result of a stronger-than-expected earnings report. The company’s earnings per share (EPS) stood at $0.29, a pleasant surprise for analysts who had placed the figure at $0.23. Similarly, Levi reported revenue of $1.47 billion, a figure 2.68% higher than the $1.43 billion forecast.

In the following two days, LEVI’s stock price declined to pre-earnings levels. The stock continues to flirt with these valuations. Shares of Nike Inc. NKE tell a similar story. 

Major Cryptos

• Bitcoin BTC/USD increased 8.08%, representing its highest price ascension in three months.
• Ethereum ETH/USD increased 8.68% after momentarily dipping below the $1,000 level.
• Solana SOL/USD increased 9.97% and closed at a price of $36.68 per coin. 

Upcoming Earnings And Catalysts

July 12

PepsiCo Inc. PEP and AngioDynamics Inc. ANGO report earnings on Tuesday, July 12. The earnings-per-share estimates stand at $1.74 per share and $0.01 per share, respectively. 

July 13

Delta Air Lines Inc. DAL will unveil its second-quarter earnings report at 9:30 a.m. on Wednesday, July 13. 

According to Kiplinger, analysts, on average, are expecting Delta Air Lines to report earnings of $1.64 per share in the second quarter versus a per-share loss of $1.07 in the year-ago period. Revenue is projected to jump 87% year-over-year to $13.3 billion.

July 14

JP Morgan Chase & Co. JPM will report earnings on Thursday, July 14. 

According to Kiplinger, analysts, on average, are expecting JP Morgan Chase to report earnings of $2.94 per share in the second quarter. Revenue is projected to rise to $32 billion.

Also, Ericsson ERIC, Morgan Stanley MS and Taiwan Semiconductor Manufacturing Co. Ltd. TSM are expected to report earnings on the same day. 

The earnings-per-share estimates for each are $0.16, $1.62 and $1.43, respectively.  

July 15

United Health Group Inc. UNH will report earnings on Friday, July 15. 

According to Kiplinger, analysts, on average, are expecting United Health Group to report earnings of $5.20 per share in the second quarter. Revenue is projected to rise to $79.7 billion.

Also, BlackRock Inc. BLK, Citigroup Inc. C and Wells Fargo & Co. WFC are expected to report earnings on the same day. The earnings-per-share estimates for each are $8.70, $1.65 and $0.86, respectively.  

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Featured photo by Burak The Weekender on Pexels