FXStreet notes that full compliance by OPEC+ members will limit the increase in output from August. The next Joint Ministerial Monitoring Committee meeting is scheduled on 18 August. Rising COVID-19 case numbers could see another reduction in traffic while refinery margins have yet to recover, suggesting refiners’ demand will stay subdued, per ANZ Bank.

“OPEC+ agreed to reduce its production cuts by 2mb/d to 7.7mb/d from August. Full compliance from other members and its commitment to compensate for higher production in May and June could limit this increase to 1mb/d.”

“Demand recovery will absorb some excess, helping bring the market into balance by Q4 2020.”  

“A resurgence in COVID-19 cases remains a key risk, as renewed lockdowns could undermine the demand recovery.” 

U.S. stock-index futures were mixed on Monday, as worries about rising coronavirus infections kept risk appetite in check.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Starbucks (SBUX) initiated with an Overweight at Wells Fargo; target $92

Facebook (FB) target raised to $305 from $258 at Credit Suisse 

Amazon (AMZN) target raised to $3800 from $3000 at Goldman

Freeport-McMoRan (FCX) downgraded to Equal Weight from Overweight at Barclays; target $14

Travelers (TRV) upgraded to Outperform from Mkt Perform at William Blair

Johnson & Johnson (JNJ) upgraded to Buy from Hold at Independent Research

S&P 500: Key resistance still at 3233/39, upside bias while above 3173 - Credit Suisse

FXStreet reports that according to Credit Suisse, S&P 500 remains capped at its June high at 3233 and further consolidation is seen likely, with supports seen at 3198 initially, then 3173 ideally holding to maintain an immediate upside bias.

“A quiet end to the week for the S&P 500 leaves the immediate outlook finely balanced as the market extends its consolidation beneath the 3233 June high.” 

“Near-term support for the S&P 500 remains seen at the price gap from last Wednesday morning at 3201/3198, below which can see weakness extend back to the 13-day average at 3173. This needs to hold to suggest the overall risk can stay higher in the range. A closing break though can reinforce the broader sideways range with support seen at 3154 next, then 3128, but with removal of 3116/13 needed to mark a top to warn of a more concerted correction lower within this range.” 

“Above 3233/39 remains needed to resolve the range higher to clear the way for a challenge on the bottom of the February ‘pandemic’ gap at 3260. Above here and we see resistance next at 3288.”

July 20

After the Close:

IBM (IBM). Consensus EPS $2.09, Consensus Revenues $17721.13 mln

July 21

Before the Open:

Coca-Cola (KO). Consensus EPS $0.41, Consensus Revenues $7255.90 mln

After the Close:

Snap (SNAP). Consensus EPS -$0.10, Consensus Revenues $442.19 mln

United Airlines (UAL). Consensus EPS -$9.25, Consensus Revenues $1396.16 mln

July 22

After the Close:

Microsoft (MSFT). Consensus EPS $1.38, Consensus Revenues $36543.48 mln

Tesla (TSLA). Consensus EPS -$0.28, Consensus Revenues $5309.94 mln

July 23

Before the Open:

American Airlines (AAL). Consensus EPS -$7.76, Consensus Revenues $1489.45 mln

AT&T (T). Consensus EPS $0.80, Consensus Revenues $40867.50 mln

Dow (DOW). Consensus EPS -$0.23, Consensus Revenues $7959.50 mln

Freeport-McMoRan (FCX). Consensus EPS -$0.02, Consensus Revenues $3057.40 mln

Travelers (TRV). Consensus EPS -$0.20, Consensus Revenues $7137.34 mln

Twitter (TWTR). Consensus EPS -$0.01, Consensus Revenues $703.61 mln

After the Close:

Intel (INTC). Consensus EPS $1.11, Consensus Revenues $18550.85 mln

July 24

Before the Open:

American Express (AXP). Consensus EPS $0.07, Consensus Revenues $8262.48 mln

Honeywell (HON). Consensus EPS $1.24, Consensus Revenues $7279.33 mln

Verizon (VZ). Consensus EPS $1.15, Consensus Revenues $29867.61 mln