Stocks - Q2 Earnings Note

Q2 Earnings

Traditionally, Alcoa starts on Monday after market, followed by other important names later this week. Estimated EPS 0.09 and -51.1 Y/Y, Revenue 5.271.

Yum! Brands reporting on Wednesday (estimated EPS 0.74 and 7.2 Y/Y, Revenue 2.695).

CSX Corp reporting on Wednesday after market (estimated EPS 0.44 and -20.9 Y/Y, Revenue 3.099).

Delta Airlines reporting on Thursday (estimated EPS 1.48 and 16.5 Y/Y, Revenue 10.499). Suffered from higher oil prices but check the valuation multiples, as their levels may be interesting. Also weekly chart worth of being reviewed.

BlackRock reporting on Thursday before market (estimated EPS 4.8 and -3.3 Y/Y, Revenue 2.791). The results with company guidance can shed some light on how the shift from active fund management of mutual & hedge funds to passive vehicles like ETFs or managed ETF portfolios impacts the entire wealth management sector. As Fintech is biting more and more, many wealth managers are looking at cheaper options for their clients, as some active asset managers struggle to generate enough alpha to justify their fees.

US Bancorp reporting on Friday before market (estimated EPS 0.81 and 0.8 Y/Y, Revenue 5.196)

…but those of high importance are:

JPMorgan Chase Inc reporting on Thursday (estimated EPS 1.44 and -3.7 Y/Y, Revenue 24.416). Not only earnings will be reviewed but also the impact of Brexit vote, as they have substantial operations in UK (most employees from all US banks present in UK), and any need for reshuffling the structure and/or moves some activities to continental Europe after UK exit. Definitely, a market mover for other bank stocks as well.

Wells Fargo & Co reporting on Friday (estimated EPS 1.01 and -1.5 Y/Y, Revenue 22.248). As it is the number 3 by assets in US, company results will be scrutinized from retail perspective. The mortgage and lending business can do well due to low long-term interest rates that support refinancing.

Citigroup Inc reporting on Friday (estimated EPS 1.13 and -22.3 Y/Y, Revenue 17.723). Along with JPMorgan Chase there will be some question marks related to Brexit vote and the market will also review the profitability of their global business model, as the activity in EM was not spectacular. Citigroup has the most business of US banks coming from abroad, thus is more vulnerable to international developments.

Good luck Champs!

Mr Hawk

 DISCLAIMER: This material was created for informational purposes only and represents the Land of Trading       teams view on past and current economic and capital market environment. It is not and shouldn´t been viewed   as an investment advice and the creator of this material shouldn´t been hold liable for any loss resulting from       action where despite this disclaimer someone would consider this  material  as an investment advice.