Weekly Earnings; Inflation Statistics; Additional Tariffs
## Market Updates: Q2 2022 Highlights
In the second quarter of 2022, the S&P 500 experienced a slowdown in earnings growth, with estimates projecting year-over-year growth in the mid-to-high single digits. This deceleration was due to mounting inflation, rising interest rates, and economic uncertainty.
### Major Company Earnings Releases
Major U.S. banks, including JPMorgan Chase, Citigroup, Wells Fargo, and Bank of America, traditionally report earnings in mid-July. For Q2 2022, these banks reported their earnings between July 14 and July 18. Netflix, which typically releases earnings in the second half of July, reported its Q2 2022 earnings on July 19.
### Bond Yields and Commodity Prices
The benchmark 10-year note is at 4.43%, while the 30-year yield stands at 4.98% in the bond market. Meanwhile, silver is trading at levels not seen since 2011. The surge in silver prices followed last week's announcement of copper tariffs, causing all metals to move significantly higher.
### Trade and Inflation Reports
The European Commission President, Ursula von der Leyen, announced that the EU will hold off on implementing retaliatory tariffs for now. Instead, they will use the time between now and the beginning of August to try and strike a deal with the Trump Administration on trade.
Inflation-related reports, such as the Consumer Price Index (CPI) and the Producer Price Index (PPI), are scheduled for release on Tuesday and Wednesday, respectively. If these reports show an uptick in inflation, it could cause concerns that inflation will continue moving higher.
### Upcoming Earnings Releases
More banks and regional banks will report earnings throughout the week. Notable banks, such as Citigroup, JPMorgan Chase, and Wells Fargo, will report earnings on Tuesday. Netflix will announce its earnings on Thursday.
### Cautionary Reminders
It's important to note that past performance does not guarantee future results in the context of investing. Additionally, this content is for educational purposes only and is not intended as trading or investment advice.
On average, it takes the S&P 500 105 days to see a pullback of at least 5% when the index is at an all-time high. This information underscores the volatility inherent in the market and the importance of a well-diversified investment strategy.
President Trump announced tariffs on South Korea, Japan, the European Union, and Mexico, with rates ranging from 25% to 30%. These tariffs could potentially impact the performance of companies in those regions.
In conclusion, the second quarter of 2022 saw a slowdown in earnings growth for the S&P 500, with inflation, rising interest rates, and economic uncertainty being key factors. Major company earnings releases, bond yields, commodity prices, trade negotiations, and inflation reports are all factors that investors should keep an eye on in the coming days.
Financing strategies in the business sector might find interests in the upcoming earnings releases from banks like JPMorgan Chase, Citigroup, and Wells Fargo, among others, which are expected to be announced throughout the week. Investors should also closely monitor the inflation-related reports, such as the Consumer Price Index (CPI) and the Producer Price Index (PPI), scheduled for release, as they could indicate further inflation movement. The upcoming Netflix earnings release and silver commodity prices could also provide valuable insights for investing decisions, especially considering the recent surge in silver prices along with the announced copper tariffs.
