Market News & Analysis

Equity Brief: Bank Earnings Mixed, Tariff Fears Return

Index names may not reflect tradable instruments and not all markets are available in all regions.


  • US indices closed marginally lower in another quiet session, amidst earnings reports from several major banks (see below)
  • Industrials (XLI) were the strongest sector on the day and Energy (XLE) was the weakest as WTI crude dropped 3%.
  • US retail sales printed stronger-than-expected at +0.4% m/m (vs. +0.2% eyed). Core retail sales also beat expectations at +0.4%, though there were negative revisions to last month’s report on both fronts.
  • “Trade war” truce in danger? President Trump said he could impose more tariffs on China if he wanted and that there was a long way to go with China on trade.
  • Stocks on the move:
    • Three major banks reported earnings today, painting a mixed picture for the sector: JPMorgan Chase (JPM +1%), Goldman Sachs (GS +2%), Wells Fargo (WFC, -3%)
    • Dow component Johnson and Johnson (JNJ) dipped nearly 2% after reporting a beat on earnings but falling revenue.
    • Domino’s Pizza (DPZ) fell nearly 9% after reporting disappointing revenue and same store sales growth.
    • Meal kit delivery company Blue Apron (APRN) surged 34% after announcing it would incorporate meals from Beyond Meat (BYND, +4%) into its seasonal recipes.
    • See our preview for IBM’s earnings report tomorrow!

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.