Equity Brief: Bank Earnings Mixed, Tariff Fears Return

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Headlines

  • US indices closed marginally lower in another quiet session, amidst earnings reports from several major banks (see below)
  • Industrials (XLI) were the strongest sector on the day and Energy (XLE) was the weakest as WTI crude dropped 3%.
  • US retail sales printed stronger-than-expected at +0.4% m/m (vs. +0.2% eyed). Core retail sales also beat expectations at +0.4%, though there were negative revisions to last month’s report on both fronts.
  • “Trade war” truce in danger? President Trump said he could impose more tariffs on China if he wanted and that there was a long way to go with China on trade.
  • Stocks on the move:
    • Three major banks reported earnings today, painting a mixed picture for the sector: JPMorgan Chase (JPM +1%), Goldman Sachs (GS +2%), Wells Fargo (WFC, -3%)
    • Dow component Johnson and Johnson (JNJ) dipped nearly 2% after reporting a beat on earnings but falling revenue.
    • Domino’s Pizza (DPZ) fell nearly 9% after reporting disappointing revenue and same store sales growth.
    • Meal kit delivery company Blue Apron (APRN) surged 34% after announcing it would incorporate meals from Beyond Meat (BYND, +4%) into its seasonal recipes.
    • See our preview for IBM’s earnings report tomorrow!


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