In Tuesday morning stock trading, investors will digest the quarterly results of financial institutions. Watch Goldman Sachs (GS), Wells Fargo (WFC), and Citigroup (C). Bank shares fell since peaking in August. Persistently rising U.S. treasury bond yields, along with the Fed raising interest rates by 25 bps, are headwinds for banks.
Markets are pricing in high bond yields to hurt credit conditions. Slower borrowing activity might slow the U.S. economy.
State Street (STT), Morgan Stanley (MS), and BofA (BAC) are the financial institutions to watch ahead of tomorrow’s earnings report posted before markets open. Charles Schwab (SCHW) posts results on Thursday. Volatile stock markets and a gradual downtick in sentiment potentially hurt trading volumes in the last quarter.
Truist (TFC) posts results on Friday.
In the restaurant sector, watch Domino’s Pizza (DPZ). The company needs sustained bullish sentiment to reverse the stock’s one year decline. A drop in DPZ stock would hurt restaurant stocks. That would include McDonald’s (MCD), Starbucks (SBUX), and Papa John’s (PZZA)
In the chip sector, Taiwan Semiconductor (TSM) indicated a bearish double top on the chart at $480. TSM stock closed at $453.31. TSM posts results this Thursday. A slump in TSM stock might hurt Broadcom (AVGO), AMD (AMD), and Intel (INTC) stock this week.
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