Market Overview: Key Highlights for Tuesday
Here’s a look at what caught the attention of CNBC producers on Monday and what they’ll be tracking for Tuesday. Bank of America has seen a notable increase of 11.5% in the last three months, and its stock is currently up 2% from its peak in July. Citigroup’s stock is up 11% in the same timeframe and 5% from its June 18 high. Goldman Sachs has performed well too, rising by 17% over the past three months, with a 7% increase from mid-June. Meanwhile, JPMorgan Chase & Co. has risen 6.7% since its last earnings report and stands 2.6% above its June high. Wells Fargo has seen a modest increase of 1% since its last report three months ago, but is up 10% from its high in January.
In options trading, CNBC’s Ollie Rennick noted that on Monday, calls were purchased 4.5 times more than puts in the State Street Financial Select Sector SPDR ETF (XLF). Conversely, in the State Street SPDR S&P Regional Banking ETF (KRE), puts were favored four times more than calls. Several banking executives will feature on CNBC on Tuesday, including Bank of America’s CEO Brian Moynihan, Wells Fargo’s CFO Mike Santomassimo, and Goldman Sachs’ CEO David Solomon, who will appear on the “Halftime Report” at noon.
Oil Prices Spike
On the energy front, both Brent and West Texas Intermediate crude oil saw increases of over 9% on Monday. This surge was largely due to ongoing tensions in the Strait of Hormuz, where Iran has continued its aggressive actions against ships and has scrapped a deal with the United States. In reaction, U.S. forces have taken action within Iranian territory. Currently, Brent crude is above $80 per barrel. Chevron’s stock rose by 3.3% on the day, seeing an 8% increase over the week and a total of 10% in July, although it remains down 15% from its high in late March. ExxonMobil also gained, up 4% on Monday, highlighting a 6% increase over the week and an 18% rise since late March.
Gasoline futures are up 5% for the week, with the average price for regular gasoline across the U.S. now at $3.876. Energy Secretary Chris Wright is set to appear on “Closing Bell Overtime” with CNBC’s Morgan Brennan on Tuesday.
Retail Concerns
In retail, the State Street SPDR S&P Retail ETF (XRT) experienced a slight decline last week. As gas prices rise, the risk of a drop in retail spending grows more pressing. Currently, XRT is still up 4.6% from its January high. I’ll be keeping an eye on CNBC throughout the day tomorrow.
Inflation Data Update
On the economic side, the Consumer Price Index is set to be released on “Squawk Box” at 8:30 a.m. ET. The forecast for the Dow Jones is predicting a 0.2% decline from the prior month, although excluding food and energy, an uptick of 0.2% is anticipated for the same period. Year-on-year, expectations indicate a rise of 3.8% for the headline rate, with a 2.8% increase anticipated when food and energy are excluded. Prediction market Kalsi reports that 73% believe the year-on-year CPI data will exceed 3.7%, while 30% suggested it might surpass 3.8%.
Boeing Orders Announced
Boeing’s orders and deliveries for June will be announced at 11 a.m. Eastern Time. CNBC’s Phil LeBeau will provide more details. The stock has dropped 1.6% since the last delivery report, but is still up 15% from its high back in January. There’s also ongoing observation regarding SK Hynix, whose stock price had plummeted 14% after climbing to $177 earlier. The iShares MSCI Korea ETF (EWY) has shown a 24% increase from June 18’s high, but fell 8.5% recently.
Apple at New Heights
In tech, Apple’s stock is making headlines as it hits new highs, partly due to Citi raising its price target to $365 per share on Monday. The stock hit a closing price of $317.31 and has risen by 9.7% in July, up 22% over the last three months.
Upcoming Events
On Tuesday, two significant events are set to take place on CNBC. Financier Chamath Palihapitiya will join “Squawk Box” at 7 a.m., while Federal Reserve Chairman Kevin Warsh will be testifying live before the House Financial Services Committee at 10 a.m.
