The S&P 500 rebounded from a midweek dip last week as investors prepare for the start of the earnings season for the second quarter.
In the US, listed Chinese tech stocks took a hit last week after Chinese regulators removed DiDi ridesharing from popular WeChat and Alipay apps as part of a cybersecurity review of the company. The DiDi ban comes less than a week after the US IPO closes and is part of a broader Chinese crackdown on tech stocks listed abroad.
WTI crude oil prices fell from their six-year highs at the end of the week after hitting $ 77 a barrel and beyond on Tuesday for the first time since November 2014.
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US 10-year Treasury yields rebounded on Friday after falling to 1.25% on Thursday, their lowest level since February. Analysts attribute the decline in returns in part to concerns that the delta variant of COVID-19 could potentially stall global economic recovery.
Large tech stocks, including Amazon, Alphabet, and Microsoft, lagged on Friday when President Joe Biden signed a new executive order aimed at reducing uncompetitive practices in the tech sector. The order includes 72 measures and recommendations, including calling on the Federal Trade Commission to retrospectively challenge bad mergers, prohibit or restrict non-compete agreements, and restore the “net neutrality” rules that were eliminated during the Trump administration.
Profit of the big banks ahead
Chip maker Smart Global reported that its adjusted earnings per share nearly doubled year over year for the third quarter of fiscal year, and its stocks rose more than 6% last week.
Next week, the second quarter reporting season kicks off with reports from major bank stocks JPMorgan Chase on Tuesday, Bank of America, Wells Fargo and Citigroup on Wednesday, and Morgan Stanley on Thursday.
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Analysts have high expectations for banks and, according to FactSet, forecast earnings growth of 116.3% from the S&P 500 financial sector for the second quarter.
Economic figures
Investors will receive more key economic intelligence on Wednesday when Federal Reserve Chairman Jerome Powell testifies before the House of Representatives Financial Services Committee, and on Friday when the Census Bureau releases its US retail sales report for the month of June.
Benzinga is a financial news and data company headquartered in Detroit.
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