Stock futures gap higher as the bulls continue to run after investors assessed the implications of the assassination attempt on former President Donald Trump and prepared for a significant week of corporate earnings reports. The Dow Jones Industrial Average futures increased by 204 points, or 0.51%, while S&P 500 futures rose by 0.43%, and Nasdaq 100 futures gained 0.5%. This uptick reflects cautious optimism in the market despite the political turmoil.

European declined to begin the week by 0.12%, with all major indexes and most sectors experiencing losses. Utilities were the hardest hit, dropping 0.91%, while basic resources followed closely with a 0.83% decrease. This broad-based downturn reflects widespread market challenges across Europe.

China’s economy experienced a growth rate of 4.7% in the second quarter, falling short of the 5.1% expansion forecast by Reuters and marking a decline from the 5.3% growth recorded in the first quarter. Meanwhile, Australia’s S&P/ASX 200 index achieved a historic milestone by surpassing the 8,000 mark for the first time, closing at 8,017.6 with a 0.73% increase.

Economic Calendar

Earnings Calendar

Notable reports for Tuesday before the bell include BLK, & GS.  After the bell include CFB, FBK, & SFBS.

News & Technicals’

Goldman Sachs is set to release its second-quarter earnings before the market opens on Monday. Analysts surveyed by LSEG anticipate earnings per share of $8.34 and revenue of $12.46 billion. Following the earnings release, company executives will hold a call with analysts at 9:30 a.m. ET to discuss the results and provide further insights into the financial performance and outlook.

Google is reportedly in advanced negotiations to acquire the cybersecurity firm Wiz for $23 billion, according to sources cited by The Wall Street Journal. If finalized, this acquisition would mark Google’s largest ever, underscoring its strategic push into the cybersecurity sector. The deal is expected to be completed soon, reflecting Google’s commitment to enhancing its security capabilities amid growing digital threats.

Burberry announced that if the current trading slowdown persists, it anticipates an operating loss for the first half of the year and a full-year operating profit below the current consensus. As a result, shares of the 168-year-old British luxury brand plummeted by 15.4% as of 9:54 a.m. London time. In response to these challenges, the company suspended its dividend and appointed Joshua Schulman, formerly of Michael Kors and Coach, as the new CEO, with Jonathan Akeroyd stepping down immediately.

Swatch Group reported a significant decline in first-half sales and earnings on Monday, attributing the downturn to weaker demand for luxury goods in China, including Hong Kong and Macau. Despite the overall slump, the Swatch brand managed to defy the trend, achieving a 10% increase in sales in China. This performance highlights the brand’s resilience amid challenging market conditions, even as the broader company faces headwinds in one of its key markets.

As we look ahead to a busy week as the earnings season ramps up the bulls continue to run pointing to a substantial gap up open.  Gapping to new record highs can create some big point whipsaws so plan your risk accordingly.  Expect volatility to increase over the next several weeks as the market reacts to all the earnings data coming our way.

Trade Wisely,

Doug