Here are five things you must know for Tuesday, July 13:
1. -- Stock Futures Mixed Ahead of Inflation Data and After JPMorgan Reports
Contracts linked to the Dow Jones Industrial Average fell 49 points, S&P 500 futures fell 2 points and Nasdaq futures were up 52 points.
JPMorgan Chase reported second-quarter adjusted earnings of $3.78 a share, beating Wall Street forecasts of $3.18. The stock fell 1.% in premarket trading.
Goldman Sachs Group GS earned $15.02 a share in the second quarter, trouncing estimates of $10.25.
Expectations that second-quarter earnings will be strong gave a boost to stocks on Monday, when the three major benchmarks again closed at record highs. The Dow finished just below 35,000.
Analysts surveyed by FactSet expect profits for S&P 500 companies to have risen 64% in the second quarter from the same quarter in 2020, a period when business activity was slowed considerably by the coronavirus pandemic. That would be the highest growth in more than a decade.
"We ran out of superlatives to describe corporate America’s stunning performance during first-quarter earnings season. Despite lofty expectations, results exceeded expectations by one of the biggest margins ever," said Jeff Buchbinder, equity strategist, and Ryan Detrick, chief market strategist, for LPL Financial.
"So what will companies do for an encore? We expect more good news this quarter as more of the economy has opened up, while also acknowledging the second quarter will almost certainly end up being the peak in earnings growth for this cycle," they added.
The yield on the benchmark 10-year Treasury edged higher Tuesday to 1.364%.
2. -- Tuesday's Calendar: Consumer Price Index, JPMorgan and Goldman Sachs Earnings
The economic calendar in the U.S. on Tuesday includes the NFIB Small Business Optimism Index for June at 6 a.m. ET and the Consumer Price Index for June at 8:30 a.m.
Economists surveyed by FactSet expect consumer inflation last month to have risen 0.5%, a bit lower than May's 0.6%. Year over year, CPI is expected to have gained 4.9% and 4% excluding food and energy costs.
3. -- FDA Adds Warning to J&J COVID Vaccine
The shot has been linked to a serious but rare side effect - Guillain-Barré syndrome, in which the immune system attacks the nerves.
About 100 preliminary instances of Guillain-Barré have emerged from 12.8 million doses of Johnson & Johnson vaccine that were administered, the Centers for Disease Control and Prevention told The Washington Post, which first reported the news. The CDC said cases of the disorder were reported mostly in men 50 years and older.
J&J said while the chance of developing the rare neurological disorder was very low, it did exceed the rate of normally reported cases among the general population by a small degree.
J&J shares fell 0.88% to $167.99 in premarket trading Tuesday.
4. -- Boeing Finds New Problem on 787 Dreamliner
The issue pertains to wrinkling in the forward pressure bulkhead in the jets’ noses, Bloomberg reported, citing a person familiar with the matter.
The defect isn’t considered a threat to flight safety, the person said.
Boeing halted deliveries of the 787 Dreamliner in late May after federal regulators declined to approve the plane maker's methods for detecting production defects.
Boeing has an inventory of about 100 Dreamliners.
The Federal Aviation Administration said in a statement that “although the issue poses no immediate threat to flight safety, Boeing has committed to fix these airplanes before resuming deliveries. Based on data, the FAA will determine whether similar modifications should be made on 787s already in commercial service.”
5. -- Meme-Stocks Exela and Sgoco Soar
Exela Technologies (XELA) - Get Exela Technologies, Inc. Report extended gains in premarket trading Tuesday, rising 8%, after the retail-trader favorite jumped more than 19% during the previous session.
TheStreet's Jim Cramer Jim Cramer urged investors to approach Sgoco with caution.
"The ones [meme stocks] away from AMC (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report and GameStop (GME) - Get GameStop Corp. Class A Report appear to be crooked. They seem to me to be pump and dumps," Cramer told Action Alerts PLUS senior analyst Jeff Marks.
AMC Entertainment declined more than 4% in premarket trading to $40.60.