S&P 500

Coca-Cola Earnings Lead Bullish U.S. Stocks

Posted Tuesday, July 23, 2019 by
Shain Vernier • 2 min read

Strong corporate earnings are the early story on Wall Street, driving equities index valuations toward all-time highs. For the first half-hour of trade, bullish U.S. stocks are producing gains in the DJIA DOW (+78), S&P 500 SPX (+7), and NASDAQ (+12). The big mover thus far has been DOW 30 leader Coca Cola, which has posted a 5% gain following a robust earnings report.

Aside from earnings season, there isn’t a whole lot scheduled for today’s U.S. economic calendar. During the pre-market hours, modest gains in the Redbook Index (July 19) largely offset a drop in the Housing Price Index (May). At this point, earnings are the key fundamental influencing stock prices and will continue to do so until Friday’s Q2 U.S. GDP report.

U.S. Stocks Press Higher

Large daily ranges have defined the S&P 500 over the past week. Values are now back on the doorstep of 3000.00, well within intermediate-term bullish territory.

September E-mini S&P 500 (ES), Daily Chart U.S. Stocks
September E-mini S&P 500 (ES), Daily Chart

Here are the key levels to watch in the September E-mini S&P 500:

  • Resistance(1): All-Time High, 3023.50
  • Support(1): Bollinger MP, 2971.00
  • Support(2): Daily SMA, 2969.00

Overview: This week has brought relatively muted conditions to U.S. stocks, at least in comparison the action last Friday. For the S&P 500, prices have become compressed in the vicinity of 3000.00. Until we see a break from this area, whipsaw trading conditions and moderate price action is likely.

Earnings season for U.S. stocks is scheduled to hit a fevered pitch in the next 48 hours. With 204 companies due to release financials Wednesday and 238 more on Thursday, the U.S. indices are capable of going in any direction. Thursday is the key day for U.S. stocks during this trading week. Amazon, Alphabet, and Starbucks are scheduled to release their earnings figures ahead of Friday’s Q2 U.S. GDP report. It is an obvious point, but some late-week Wall Street fireworks are highly likely.

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