Can Rebound Follow Early Weakness? Pattern Lately Has Seen Markets Recover From Poor Starts
- Date: 16-Jul-2020
- Source: Forbes
- Sector:Financial Markets
- Country:GCC
Can Rebound Follow Early Weakness? Pattern Lately Has Seen Markets Recover From Poor Starts
Getty Images
Getty Images
Key Takeaways:
Mixed bag on bank earnings as Bank of America
BAC
shares fall on heavy credit loss provisions
Morgan Stanley
MS
gets initial bounce as strong trading revenue drives earnings beat
China stocks shed 4% despite GDP growth in Q2; Netflix
NFLX
earnings awaited after close
If you crave a full menu of data and earnings, today's the banquet you've been waiting for.
Morgan Stanley (MS) and Bank of America (BAC) rounded out the big bank results this morning, followed by retail sales and weekly jobless claims. Major indices have a weaker tone in the early going, hurt by a sharp 4% drop in Shanghai stocks. What could be interesting is to see if the market bounces back from this early weakness. That's been the pattern lately on days where stocks have started lower.
Shanghai struggled today despite China reporting a 3.2% rise in Q2 gross domestic product (GDP). Even though GDP looked good, the retail sector there isn't doing well. That's one reason why the U.S. market is selling off this morning.
You could argue that strength in