Earnings Galore: Tesla, Google, Visa

Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets. It is Tuesday, July 23. The Bottom Line segment of today’s podcast starts at (2:41) for listeners who want to skip ahead. Be sure to check out the new ‘Stocks on the Contrarian Radar’ segment at the bottom of this page and (4:08) on the podcast.

State of Play

Stocks rallied yesterday, led by tech. As we look at our board of indicators for signs of direction at 0640, all is quiet ahead of a major day of earnings:

• Stock index futures are basically flat with no major US index moving more than 0.2% from the break-even point;

• Commodities aren’t doing anything. WTI crude oil is unchanged trading around $78/barrel while copper is down 0.6%;

• Cryptos, too, are unchanged. Bitcoin is trading around $67,000;

• Bonds not doing anything either. The 2-year yields 4.51% whilst the 10-year yield 4.23%.

Today’s Known Events

No economic data releases to speak of again today. Earnings are the story. We’ve had several of these come in already so let’s get you caught up:

• United Parcel Service (UPS 0.00%↑) missed earnings across the board and that stock is dropping in the pre-market, down 6% at the time of this writing;

• Spotify (SPOT 0.00%↑) earnings were more positive and that stock is rallying, up 13% in the pre-market;

• GE Aerospace (GE 0.00%↑) earnings were mixed but that stock, too, although just a bit (1%);

• General Motors (GM 0.00%↑) beat earnings and raised guidance as that stock is up 6% in the pre-market;

• Kimberly Clark (KMB 0.00%↑) beat estimates and raised guidance;

• Coca Cola (KO 0.00%↑), Lockheed Martin (LMT 0.00%↑), Freeport McMoran (FCX 0.00%↑), and Philip Morris (PM 0.00%↑) are also due before the open.

After the close come the main events, in the form of Tesla (TSLA 0.00%↑), Google (GOOG 0.00%↑), Visa (V 0.00%↑), and Texas Instruments (TXN 0.00%↑), among others.