The Vanguard S&P 500 ETF (NYSEMKT: VOO) came within inches of its all-time high yesterday, closing at 573.61. As trading prepares to open Thursday, however, investors are looking to pull back a bit, and the ETF is falling modestly, down 0.1%.
Tariff worries continue to weigh on markets, with the President announcing a new 50% tariff on imported copper yesterday, and a separate 50% tariff on goods imported from Brazil. Brazilian President Luiz Inacio Lula da Silva promised to respond in kind, raising tariffs on U.S. exports to Brazil if the U.S. tariff is implemented. In addition to Brazil, the President has sent letters warning of imminent tariff hikes to nearly two dozen other countries over the last couple days.
Fears that higher tariffs will raise inflation rates in the U.S. continue to keep the Federal Reserve off balance, and uncertain about whether it will be able to cut interest rates this year.
Earnings
Not all the news is bad, however. S&P 500 component company Delta Air Lines (NYSE: DAL) announced strong Q2 adjusted earnings this morning, with $2.10 per share earned, about a nickel more than expected, and revenue also a bit higher than expected. Delta also reinstated earnings guidance, saying it expects to earn between $1.25 and $1.75 in its fiscal third quarter, and between $5.25 and $6.25 a share for the year.
Shares of the airline stock are up more than 12%.
Analyst Calls
Defense contractor and S&P 500 component company Huntington Ingalls (NYSE: HII) won an upgrade to buy from TD Cowen this morning, which set the military shipbuilder’s target price at $300 a share. “Eventual margin upside Is sizable,” predicted the banker, noting that the 5.2% operating margin Huntington Ingalls currently earns is just half of management’s target.
Cowen agrees it’s “plausible” the company could double its profits from here.
Separately, KeyBanc analyst Justin Patterson upgraded Roku (Nasdaq: ROKU) stock to overweight with a $115 price target. “Roku is benefiting from a combination of secular drivers, monetization initiatives, and an expense ‘self-help’ story [that will] drive faster EBITDA growth,” said the analyst.
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The post Stock Market Live July 10: Strong Delta Earnings Fail to Help S&P 500 (VOO) Lift Off appeared first on 24/7 Wall St..
