Big Picture

Earnings continue to be skewed to the positive side as far as stock price reactions go, although the stock market seems to taking a breather.  JP Morgan followed Goldman Sachs’ lead and said some nasty things about tech stocks which hit the Nasdaq particularly hard yesterday and took other sectors down with it.  VXN (think Nasdaq VIX) was up much more than the other broad-based equity volatility indexes.  Needless to say, traders will probably focus on large tech stocks until there is some sort of stabilization. 

Sticking with the technology theme Apple is due to report next week which always gets a lot of attention but it maybe accentuated due to the increased focus on tech as well as any news that may come out about the iPhone 8.

GDP came in at 2.6% vs 2.7% expectations.  Keep in mind this is the first of three reports on the second quarter.  I was expecting a higher GDP number based on corporate earnings, so much for trying to equate one to the other.

Overnight / Pre-Market

VIX is hovering around 11 with S&P 500 futures under pressure.  The FTSE 100 is down about .75% and the Nikkei finished the day down 0.60%.  European volatility expectations are rising today with VSTOXX up 1.34 to 14.11 while the underlying Euro Stoxx 50 index is down 0.40%.

We continue to get earnings announcements in early trading the following stocks are on the move:

Higher:

BIDU +5.4%, EXPE +2.0%, HIG +1.4%, INTC +1.3%, ABBV +1.1%, LYB +2.5%

Lower:

AMZN -3.2%, DECK -2.7%, EA -3.1%, FLEX -6.4%, MAT -6.2%, SBUX -7.2%, WDC -4.5%, XOM -2.1%, YNDX -3.0%

Peter Luks from the Options Institute discussed AMZN yesterday on What’s Trading –

http://www.cboe.com/blogs/options-hub/2017/07/27/amazon-earnings-delivered-tonight

Looking Forward

There are still several stocks reporting earnings.  Here’s the names for Monday next week.

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Next week is a huge week for earnings, the full list can be found here –

http://www.cboe.com/blogs/options-hub/2017/07/27/earnings-week-of-july-31-to-august-4

On the economic number front, next Friday is the first Friday of August and the first Friday of each month usually has an employment report.  The ADP number comes out Wednesday, which is always fun to pick apart and use to guess what’s going to be reported Friday.  The official employment situation report comes out Friday before the open.

CBOE Webcasts

August 2nd at 3:30 Central – Dan Passarelli discusses Tips and Tricks to Setting Up High Probability Option Trades

August 9th at 3:30 Central – Russell Rhoads discusses Option Strategies in a Low Volatility Environment

More information and registration at www.cboe.com/webcasts

Also today is the last day to register for CBOE RMC Europe which will be held just outside London from September 11 to 13 – www.cboermceurope.com

Today in History

On this day in 1978 the Delta house at Faber college was immortalized with the release of Animal House.  This was the first movie created by National Lampoon and also can be considered the beginning of a tradition of Saturday Night Live alums starring in movies.  Without Animal House we may not have Caddyshack, Trading Places, or six degrees of separation from Kevin Bacon. 
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