Daily Analysis US Indices - 14 July 2023

The S&P 500 futures saw a gain of 0.1%, while Nasdaq-100 futures experienced a slight increase of less than 0.1%. JPMorgan Chase saw a rise of over 2% in premarket trading after surpassing expectations with their earnings. The bank capitalized on higher interest rates and increased interest income. Additionally, Wells Fargo also rose over 3% in premarket trading, driven by better-than-expected earnings.

UnitedHealth shares climbed over 2% following the insurance giant's report of better-than-expected earnings and revenue. The company also raised the lower end of its full-year earnings guidance. Similarly, BlackRock experienced a rise of over 1% due to a significantly better-than-expected profit.

According to FactSet, analysts are anticipating a downturn this season, with a projected year-over-year decline of approximately 7% in S&P 500 earnings. If this materializes, it will represent the weakest earnings season since the second quarter of 2020 when S&P 500 profits plummeted by 31.6%.

Traders will also closely monitor the release of June import prices and the preliminary July results from the latest University of Michigan consumer sentiment report.

The breakout of the Nasdaq above the 15,200 level, fueled by improved sentiment, suggests that the next target could be around 15,800. The second-quarter earnings results and the growing confidence in AI as a new revenue source for technology companies and the economy as a whole might further support the Nasdaq's ascent to new highs.