CBOE's Weekly Market Recap: July 11 To 15

Caught in the ebb and flow of a bear market, the world’s stock markets seemed to be taking another breather last week. 

Following months of downward movement, the markets reached a stalemate around many of the world’s top stock-tracking indices last week. Specifically, the SPDR S&P500 ETF SPY has decreased less than 1% throughout the week, forming what stock chart technicians will call a “Doji candle” at the lows. 

Cboe Global Markets Inc. CBOE reports that other global indices — like those reflected in iShares FTSE 100 ISF and iShares Core DAX UCITS ETF EXS — mirrored this constricted price movement, with weekly movements falling below 1% for each. 

Entering earnings season, Cboe also reports several eye-catching earnings releases — most notably from BlackRock Inc. BLK and Citigroup Inc. C — that have spurred the creation of many press headlines and quick-fire investments from traders.

BlackRock’s surprising response to a historic earnings release won it “chart of the week” in this weekly recap. 

Finally, Cboe notes important upcoming earnings that may lift investors’ eyebrows in the following weeks.

Quick Bites

Exchange-Traded Funds 

• The SPDR S&P 500 ETF decreased by 0.91% last week, forming a long downward “tail” that some technical analysts would regard as evidence of buying pressure.
• The Invesco QQQ Trust Series 1 QQQ decreased by 1.18% last week, forming a similar tail to that of the S&P500 ETF.
• The iShares Russell 2000 ETF IWM decreased by 1.42% last week, following in the footsteps of macrocap indices.
• The Cboe Volatility Index™ VIX decreased by 1.74% last week, representing the fifth consecutive week of decline.

World Markets

• The iShares Core MSCI Europe ETF IEUR decreased by 1.37% week-on-week.
• The iShares FTSE 100 ISF increased by 0.93% week-on-week.
• The iShares Core DAX UCITS ETF EXS increased by 0.28% week-on-week. 
• The Lyxor CAC 40 ETF CAC increased by 0.12% week-on-week. 

Chart Of The Week: BLK

This photo was taken from the TradingView platform

Shares of world-renowned investment management corporation BlackRock climbed 2% the day following its first earnings miss since last July. 

The company surprised Wall Street analysts by reporting earnings per share (EPS) 6.49% below the $7.87 estimate. Additionally, BlackRock missed its revenue projections, reporting $4.526 billion in revenue as opposed to the expected $4.553. 

Given reports that the asset management company lost $1.7 billion worth of clients’ assets in the first six months of 2022, it’s perhaps a surprise to many that the company’s stock is up roughly 7.8% since its pre-earnings day close.

Major Cryptos

• • Bitcoin BTC/USD decreased 0.28%, experiencing its fourth consecutive week of price consolidation between the $18,000 and $22,500 levels.
  • Ethereum ETH/USD increased 14.6% after the release of a concrete date for The Merge. 

 

• Solana SOL/USD increased 5.26% and closed at a price of $41.07 per coin. 

 

Recent And Upcoming Earnings Releases

Recent Earnings

Many of America’s biggest financial institutions have followed the earnings trend — and subsequent stock price movement — of the chart of the week winner: BlackRock. 

Specifically, Wells Fargo & Co. WFC, Morgan Stanley MS and JP Morgan Chase & Co. JPM have all missed their earnings estimates, citing an EPS miss of 8.05%, 7.92% and 4.54%, respectively.

Despite the presence of earnings misses across the financial sector, there were a few exceptions. Citigroup Inc. C and Charles Shwab Corp. SCHW represent two of these. The two reported an EPS positive surprise of 30.59% and 6.67%, respectively. 

Citigroup’s price rally — perhaps because of this huge surprise — was the strongest of the bunch.

Upcoming Earnings

United Parcel Service Inc. UPS, Coca-Cola Co. KO, General Electric Co. GE, McDonald's Corp. MCD, Shopify Inc. SHOP, Boeing Co. BA, Spotify Technology SA SPOT, Pfizer Inc. PFE, Tilray Inc. TLRY, Mastercard Inc. MA, Exxon Mobil Corp. XOM, Chevron Corp. CVX and Procter & Gamble Co. PG all report earnings in between July 25 and July 29.

Keep a close eye on next week’s updates for details on these, and click here for more weekly insights by Cboe.

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Photo by Paul Fiedler on Unsplash