See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week trial to Bespoke Premium.  CLICK HERE to learn more and start your trial.

“I don’t know as I want a lawyer to tell me what I cannot do. I hire him to tell how to do what I want to do.” – JP Morgan

Bespoke’s Paul Hickey will be appearing on Making Money With Charles Payne today at 2 PM on Fox Business. Check it out!

Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.  

As if the flood of earnings reports from the big banks, the June CPI report, and Congressional testimony from Kevin Warsh weren’t enough, IBM just added one more big ingredient to today’s market recipe with an earnings warning. The stock is trading down over 20% in the pre-market and on pace for its most negative opening gap in at least 50 years.

Dow futures are down 0.6% as IBM has a larger weighting in that index than the S&P 500. As a result, S&P 500 futures are down just 0.10%, while the Nasdaq 100 is on pace to open higher by over 0.50%. Whether those gains can hold into the end of the day remains to be seen.

Treasury yields continue to march higher, with the 10-year yield up to 4.62%. WTI crude oil is back above $80, while gold is fractionally higher, hanging on to $4,000, and Bitcoin is up 1%.

Equity investors in Asia licked their wounds from Monday and pushed stocks modestly higher overnight. Both the Nikkei and KOSPI were up 0.7% while onshore China was up 1.4%, and offshore stocks were up 0.5%. The 0.7% rally in South Korea looks like a modest move at the surface, but it was a volatile session with the index trading down over 5% intraday at one point.

The tone is decidedly weaker this morning in Europe as the STOXX 600 trades down 0.6%, led lower by Spain (-0.9%) and France (-0.8%), while the UK (-0.3%) and Italy (-0.4%) hold up relatively better. While equities are generally lower across the board, stocks in the region are off the intraday lows.

As mentioned above, there are a lot of catalysts for investors to navigate through today. Earnings results have been very positive, and CPI just hit the tape. The headline report came in much weaker than expected, with a decline of 0.4% versus forecasts for a decline of just 0.1%. Core CPI was unchanged versus forecasts for an increase of 0.2%. Most importantly, the year/year reading came in at 3.5% versus forecasts for 3.8%. While the May report last month created an inflation scare for the market, today’s report largely erases that. The only other report on the calendar was NFIB Small Business Sentiment, which came in higher than expected.

Below is a look at how the major banks and brokerage firms looked relative to their trading ranges heading into this morning’s earnings reports. The five stocks reporting are far from a monolith based on their YTD returns. While Citi (C) and Goldman Sachs (GS) are both up close to 20%, Bank of America (BAC) and JPMorgan Chase (JPM) have seen just single-digit gains, and Wells Fargo (WFC) is lower. More recently, they’ve mostly seen modest weakness, although WFC has eked out a gain. The recent weakness, it should be noted, comes after the stocks recently reached overbought levels, as they look to digest recent gains.

The chart below of the S&P 500 Financials sector ETF (XLF) puts the recent moves of the largest banks into perspective. After breaking above resistance about two weeks ago to the highest level of 2026, XLK reached extremely overbought levels, trading as much as three standard deviations above its 50-day moving average. It then pulled back and digested those gains after running into resistance at its prior record highs. With XLF stuck between one former and one current resistance level, how the stocks react to today’s earnings reports could say a lot about how the summer plays out for the sector.

So far, the initial reaction of the stocks hasn’t been promising. All five major banks reporting this morning have easily blown out EPS and revenue forecasts, but all but GS is trading lower in the pre-market. Based on their runups into earnings season, the bar for these companies was set high.

Start a two-week trial to Bespoke Premium to continue reading today’s full Morning Lineup.