Traders Evaluate Impact of Trump Assassination Attempt and Gear Up for Key Corporate Earnings – NYSE Floor Update

Traders on the floor of the New York Stock Exchange were abuzz with activity on Aug. 4, 2022, as stock futures pointed to a higher opening. Investors were carefully evaluating the impact of the recent assassination attempt on former President Donald Trump, while also gearing up for a significant week of key corporate earnings.

Futures on the Dow Jones Industrial Average rose 204 points, or 0.51%, with S&P 500 futures adding 0.43% and Nasdaq 100 futures gaining 0.5%. Traders were closely monitoring the aftermath of the attempted assassination of Trump, the Republican candidate for president. While the incident had the potential to create more political turmoil in the country, traders were also speculating that it could lead to further gains in the polls for Trump and Republicans ahead of the November election.

“The good news is that former President Trump was not injured more than the ear, that he was not killed and as a result I think the market will continue on its momentum ways,” said Sam Stovall, chief investment strategist at CFRA Research on CNBC’s “Worldwide Exchange.”

With the Republican National Convention set to begin in Milwaukee, Wisconsin, and Trump leading President Joe Biden in national polls, shares of insurers Humana and UnitedHealth Group saw gains in premarket trading. Analysts noted that Trump was already the clear frontrunner, and the recent incident would only solidify his status.

Investor attention was also shifting to second-quarter earnings reports, which could potentially drive the market to new record highs this year. The Dow Jones had just hit a fresh all-time high above 40,000, with the S&P 500 jumping 18% in 2024 to a new record. More than 40 S&P 500 companies were scheduled to report second-quarter earnings during the week.

The previous week had seen solid gains in the major equity benchmarks, with the S&P 500 gaining 0.9% and the Nasdaq Composite rising 0.3%. The Dow was the top performer, gaining 1.6% for its best weekly performance since May 10.

Federal Reserve Chair Jerome Powell was scheduled to speak at the Economic Club of Washington, D.C., adding to the market’s focus on key events. Additionally, Goldman Sachs, Morgan Stanley, Bank of America, Johnson & Johnson, United Airlines, and Netflix were among the companies set to release earnings reports during the week.

Results from some of the big U.S. banks that kicked off the reporting season were mixed, with JPMorgan and Citigroup surpassing expectations while Wells Fargo’s decline in net interest income disappointed investors. Overall, traders and investors were bracing themselves for a week filled with market-moving events and eagerly anticipating the outcome of the corporate earnings reports.