Tesla and Goldman Sachs Results Set to Shake Up Stock Market: Buckle Up for Excitement and Earnings Surprises!

Good morning,

U.S. stock index futures crept higher on Wednesday with all eyes on second-quarter results from Tesla and Goldman Sachs, a day after upbeat bank earnings helped the Dow post its longest winning streak in two years. 

“Banks in general had very low expectations but the ones reporting (on Tuesday) largely beat these expectations,” said Kim Forrest, chief investment officer at Bokeh Capital Partners. M&T Bank, Citizens Financial, US Bancorp, Zions Bancorp and Discover Financial also report on Wednesday.

Tesla slipped 0.3% ahead of results expected after the bell. Its strategy to boost sales through price cuts is likely to have powered its strongest revenue growth in five quarters while dragging down margins to a three-year low in the April-June period. 

Shares of Microsoft edged 0.6% higher, a day after the Windows-maker hit an all-time high on announcing it would charge more to access new artificial intelligence features in its Office software.

Applications to start new U.S. businesses surged to the highest level in two years in June, despite high interest rates and uncertain economic outlook, according to a Commerce Department report released on Monday. 

WTI crude futures steadied around $76 a barrel. Gold held above $1,970 an ounce while the US 30-year Treasury note steadied at 3.75%.  

Wheat futures in the US extended their rally to the $6.9 per bushel level in July, its highest in three weeks, amid deepening concerns about low supply. Soybean futures rose past $15 per bushel, the highest in three months due to concerns about crop yields in the United States and increased demand from China. Corn futures rose to above $5.05 per bushel, rebounding sharply from the two-and-a-half-year low of $4.76 touched on July 12th amid threats to supply and higher demand for biofuels.

Have a great day!