US OPEN: Banking sector leads Wall Street, capital outflows to smaller companies!

• Banking sector leads the gains on Wall Street

• Wall Street shows signs of capital outflow to smaller-cap companies

• Results from BAC, MS, SCHW and BNY Mellon

• Lockheed Martin raises full-year forecasts 

The start of Tuesday's session on Wall Street has seen gains for most listed companies. However, what is interesting during today's session is the quite visible outflow of capital from the largest companies to the smaller ones. Banks' Q2 results lift the banking sector's quotations. Tomorrow, Tesla and Netflix, among others, will present their results. 

This week's results calendar. Source: xStation5 

Additionally, investors should pay attention to the results of Taiwan Semiconductor Manufacturing TSM.US tomorrow. The company is expected to post a 27% year-on-year decline in net profit (however, the results themselves are expected to improve in the current quarter). 

US companies categorised by sector and industry. Size indicates market capitalisation. Source: xStation5

The US100 index is losing nearly 0.36% at the start of today's session. Source: xStation 5

Company news:

Schwab up as deposits fall less than expected 

PNC Financial - Shares of PNC (PNC.US) fell 0.35% (erasing early declines) early in the session after releasing lower-than-expected quarterly revenue ( $5.29 billion versus $5.45 billion expected).

On a per-share basis, earnings were US$3.36 compared to US$3.39 in the same period last year. Analysts surveyed by FactSet had expected earnings of US$3.29 per share.

Average deposits fell to $425.7 billion from $446.5 billion a year ago and $436.2 billion in the previous quarter.

Source: xStation5 

Morgan Stanley - MS.US shares gain nearly 4% early in the session. The bank posted stronger-than-expected revenue (USD 13.46 billion/ expected USD 13.08 billion) and earnings per share (USD 1.24/ expected USD 1.15).

On the other hand, a much stronger downward surprise was the results from the Debt Trading division. Profits from the Wealth Management division the highest ever. 

Source: ZeroHedge

Source: xStation5 

More information on Morgan Stanley and Bank of America can be found here. 

The big surprise in terms of results today was Charles Schwab (SCHW.US).  

The bank reported revenues of $4.7 billion, down 9 per cent year-on-year, but above the $4.6 billion expected by analysts surveyed by Refinitiv. Adjusted net profit was US$1.5 billion, ahead of the US$1.3 billion expected by analysts. Deposits fell less than expected. The company is gaining as concerns arising from the impact of the recent banking turmoil did not prove to be that severe in its impact on Schwab. The shares are currently gaining more than 12%.

Source: xStation 5

BNY Mellon - BK.US net interest income for the quarter rose 33% to $1.1 billion, up from $824 million a year earlier. On an adjusted basis, it reported earnings of $1.38 per share, well above the average analyst estimate of $1.22 per share. Bank shares are currently gaining more than 2%.

Source: xStation5 

Lockheed Martin (LMT.US) earnings beat street forecasts and reported record high order intake. What's more, the company raised its earnings guidance for the year. EPS came in at $6.63 against expectations of $6.45.  Lockheed Martin's revenue rose 8% to US$16.7bn, again ahead of analysts' estimates of US$15.5bn.