The View from 5th Avenue

The View at Two – 14 July 2020

About That Earnings Clarity… Earnings season is officially underway and stocks can’t seem to make up their mind on what do, though that’s somewhat understandable given that yesterday’s confidence shaking afternoon fade remains a fresh memory and Banks have elicited a roller coaster response from their Q2 results this far. JPM (-0.1%) and Citi (-3.4%) initially looked to lead the space higher after Investment Banking revs came in clutch to save the banks’ profitability (WFC -5.8% not so lucky…) but both have since turned red and the sector is now the worst performer (more on that below). Otherwise though today’s action has a “rotation” theme to it with Autos and Materials outperforming along with Energy getting a bid ahead of an OPEC meeting tomorrow. Throw in China retaliating against Lockheed Martin (LMT -0.4%) over a Taiwan deal and the ever-flowing stream of virus news and you understand why uncertainty / fear have US indices treading water for the time being

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