Daily summary: US banks initiate good start to Q2 earnings season

Wall Street erases most of the early rally fuelled by better-than-expected results from major US banks. The Russell 2000 index loses 0.93%, the Nasdaq adds 0.1% and the S&P 500 gains 0.15%. The Dow Jones benchmark was the best performer, gaining 0.4% at the time of publication.

Banks presented better interest performance thanks to high interest rates.

Next week, financial companies will continue to publish their results. In addition, we will hear reports from Tesla, Netflix and IBM, among others.

The UoM data are surprising in two respects: an improvement in consumer sentiment, but also a rebound in inflation expectations, which is not a very good sign from the perspective of the Fed decision. On the other hand, the Fed itself expects that inflation could be fairly flat next year. 

AT&T (ATT.US) shares are sliding to their lowest levels in 20 years after a downgraded recommendation from JP Morgan, which sees growing competition around the company.

Ericcson (ERICB.SE) and Nokia (NOKIA.FI) were subject to depressed sentiment today after an earnings warning and the release of weak results from Ericcson.

WTI and Brent crude oil are down more than 2% today, breaking a 3-day upward streak. The rises stopped exactly at the limit set by the 200-day exponential moving average (EMA 200). 

Gold also capped the gains, despite EURUSD holding above 1.12

The US Federal Court's decision that XRP tokens do not constitute securities led to a frenzied rally on XRP. It is now up around 70% compared to before the decision. Analysts estimate whether a similar kind fate may await Coinbase (COIN.US) and Binance (BINANCECOIN), which are also under US regulatory pressure.