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The Dow Jones today could tick slightly higher after earnings season kicked off with reports from several major U.S. banks. Investors are cautious about what a rate cut means to financial institutions. More below.
Plus: Fiat Chrysler Automobiles NV (NYSE: FCAU) received a downgrade. Scroll for details on this and other DJIA impacts.
Here are the numbers from Monday for the Dow, S&P 500, and Nasdaq:
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Now, here's a closer look at today's Money Morning insight, the most important market events, and stocks to watch.
The Top Stock Market Stories for Tuesday
- Earnings season kicked into full swing this morning with reports from several large banks. However, despite solid numbers, the bulk of banking stocks are in the red as concerns about the U.S. economy and interest growth affect their outlooks. Wells Fargo reported EPS of $1.30, easily beating expectations of $1.17. Its $21.6 billion in revenue also topped Wall Street forecasts.
- The U.S. Commerce Department reported stronger-than-expected retail sales for the month of June. The agency said sales increased by 0.4%, a figure that topped Wall Street consensus expectations of 0.1%. That said, this figure is well below the 3.4% reported during the same period last year. The U.S. economy remains under pressure thanks to slowing economic growth and the ongoing trade war with China. U.S. Federal Reserve Chair Jerome Powell told Congress last week that the central bank will take appropriate actions to reduce America's exposure to these negative factors. The Fed is widely expected to cut its benchmark interest rate during its meeting on monetary policy later this month.
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- Oil prices are largely flat as markets eye today's inventory report from the American Petroleum Institute. WTI crude and Brent crude are both off slightly as production resumes in the Gulf of Mexico after Hurricane Barry. Prices also remain under pressure after China reported its weakest second-quarter growth figure in 27 years.
Stocks to Watch Today: GS, KEY, FCAU
- Shares of Goldman Sachs Group Inc. (NYSE: GS) added 1.1% after the bank reported EPS of $5.81 per share. That figure beat Wall Street consensus expectations of $4.89. The company also announced it would hike its dividend from $0.85 to $1.25 per quarter.
- Shares of KeyCorp (NYSE: KEY) are off 2.1% after the company reported it discovered fraudulent activity by one of its business customers. The firm reported that the fraud could cost it up to $90 million.
- Shares of Fiat Chrysler Automobiles NV (NYSE: FCAU) were off 4% this morning after the auto giant received a downgrade from Goldman Sachs. The bank warned that the company is facing a number of headwinds, including limited growth potential in North America.
- Look for additional earnings reports from Johnson & Johnson (NYSE: JNJ), United Airlines Holdings Inc. (NYSE: UAL), Wells Fargo & Co. (NYSE: WFC), CSX Corp. (NYSE: CSX), and Charles Schwab Corp. (NYSE: SCHW).
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