Happy Monday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟩 | US Stocks Rose on Monday. The Dow rose over 200 points and closed at a new record high. The other two major indexes also rose.

• 📈 | One Notable Gainer: Following the attempted assassination of Donald Trump, Smith & Wesson saw its shares surge 11%, as did other firearm stocks, which tends to happen following events that could increase domestic turbulence

• 📉 | One Notable Decliner: Medical products company Baxter International’s stock fell 4% after Morgan Stanley downgraded it to Underweight from Equal-weight, citing limited upside despite trading near its lowest level in nearly a decade.

• 🤑 | Tomorrow's Trade: Earnings Season Expectations. Scroll down for more.

Plus, discover trading platforms for Cboe index options.

FRIDAY’S POLL RESULTS

Are you bullish or bearish on ResMed (RMD) over the next 12 months?

🟩🟩🟩🟩🟩🟩 Bullish

🟨🟨🟨⬜️⬜️⬜️ Bearish

MARKET MOVERS

Amazon, AutoNation, & Tesla

AMZN (-1%) Shares of Amazon fell despite reports that shoppers are likely to spend approximately $14 billion during Amazon’s Prime Day (YF)

BURBY (-16%) Burberry’s stock plummeted upon announcing the departure of CEO Jonathan Akeroyd and issuing a profit warning (CNBC)

AN (+2%) AutoNation’s stock rose despite warning that the CDK hack will put a “big dent” in its quarterly earnings, which will be released July 19th (Bloomberg)

GS (+3%) Goldman Sachs’ second-quarter profit jumped to $3.04 billion, a 150% from a year earlier (CNBC)

TSLA (+2%) Shares of Tesla rose after a Susquehanna analyst noted that Tesla is growing equipment availability of its Powerwall 3 home battery (MW)

TOGETHER WITH CBOE

OVERHEARD ON THE STREET

Axios: The world’s second-largest cruise ship, Royal Caribbean’s Utopia, will focus on a trend in short cruise vacations and set sail next week.

Reuters: French IT company Atos announced it secured $1.82 billion in funding to restructure its debt.

Forbes: US oil production has extended its massive lead over Russia and Saudi Arabia, which have seen 1% and 8.6% declines in production, respectively.

YF: Citi claims that the Fed could slash rates by 200 points over 8 straight meetings as the economy heads for a sharper downtrend.

Bloomberg: A hacker who claims to have stolen sensitive call and text logs from AT&T said they were paid about $400,000 to erase the data trove.

TOMORROW’S TRADE IDEA, TODAY

Earnings Season Expectations

The Criteria

Earnings season is upon us and investors will be watching to see how reports compare to Wall Street expectations. 

Bespoke Investment Group has been on the lookout for stocks that beat the Street’s expectations at least 75% of the time and historically saw share prices jump at least 1% after reporting.

Ally Financial

Ally Financial (ALLY) made the list. It beats earnings expectations 78% of the time, with an average of 1.2% stock gains after reporting. 

According to analyst John Pancari of Evercore ISI, Q2’s results should boost investor confidence in the company’s fundamentals. The report could also convince investors that there’s an upside to the financial service company’s current low valuation. 

Ally is up 21% YTD and 52% over the past 12 months. Analysts think it will rise another 4% over the next 12 months. The company is scheduled to report on Wednesday.

D.R. Horton

Homebuilder D.R. Horton (DHI) also made the cut for beating earnings estimates 76% of the time. Typically, the stock rises 1.5% following earnings reporting. JPMorgan (JPM) analyst Michael Rehaut is bullish on the stock and expects it to outperform competitors. 

The stock is up only 2% YTD, underperforming the broader market, but analysts give it an average upside of 18%. The homebuilder will report on Thursday.

Investors who get in before earning reports could benefit from the swing of momentum that sometimes follows.

TOGETHER WITH CBOE

ON OUR RADAR

AP: Texas Governor Greg Abbott demands answers as 270,000 homes in the Houston area remain without power following Hurricane Beryl.

Bloomberg: China withdrew cash from its banking system for a fifth consecutive month amid Yuan pressure.

Forbes: Argentina has a 276% inflation rate, which is why the nation has the highest crypto adoption rate in the Western Hemisphere.

Bloomberg: In related news… Venezuelan families are turning to Tether and Dogecoin as lifelines as the nation recovers from an economic crisis.

NA: Japan will need 970,000 more foreign workers than it is projected to have in 2040 to meet the nation’s economic growth target.