|Day's Range||2,800.01 - 2,809.70|
|52 Week Range||2,417.35 - 2,872.87|
Manufacturers are booking more orders and delivering higher profits in a strong U.S. economy. This week, 3M Co., Harley-Davidson Inc. and Whirlpool Corp. are scheduled to report. Some of the biggest manufacturers are leading the decline.
U.S. stocks closed marginally lower as strong earnings offset investor concerns raised by U.S. President Donald Trump's comments on trade. Trump also doubled down on his criticism of global monetary policy and the Federal Reserve. An important focus for markets remains the U.S.-China trade war: Trump told CNBC in a recent interview that he was prepared to impose tariffs on all Chinese imports to the U.S. if he had to.
As tech companies continue to dominate Wall Street, with four now standing alone with valuations of more than $800 billion, gigantic growth is priced in and expected. All the drama is in the forecasts.
Investing.com - Market focus in the week ahead will be largely attuned to the next potential steps of the brewing trade war between the United States and its major trading partners, most notably China and the European Union.
With about 35% of the companies in the S&P 500 set to report quarterly results this week, investors will get a fresh look at whether companies ranging from automobile makers to technology giants have remained on strong footing. Investors will be watching to see whether those companies can maintain their surging pace of earnings and revenue growth. The companies, though, have drawn attention from regulators for their growing dominance in their respective industries.
The schism in global trade relations was laid bare at a meeting of G20 finance ministers and central bank governors in Argentina over the weekend, who warned that increasing trade tensions risk undermining the global economy. On Friday, fresh concerns about the prospect of a global trade war unsettled financial markets after Donald Trump threatened to slap tariffs on all Chinese imports to the US — hard on the heels of his criticism on Thursday of the Federal Reserve’s recent interest rate rises.
A busy week of earnings and data awaits investors, while the strength of the US dollar and trade protectionism jitters dominate trading sentiment. The dollar index has risen more than 7 per cent from its February low, and while Donald Trump’s jawboning weighed on the currency late last week, it looks set to extend its rally given the robust pace of US growth versus the rest of the world. While the dollar index remains 8 per cent below its late 2016 peak that followed the election of Mr Trump, the cost of borrowing has risen a great deal.
Based on last week’s close at 2800.75, the direction of the September E-mini S&P 500 Index this week is likely to be determined by trader reaction to the downtrending Gann angle at 2789.00. The main trend is up according to the weekly swing chart. However, momentum may be getting ready to shift to the downside with the formation of the closing price reversal top. A trade through 2789.75 will confirm the chart pattern. This could fuel the start of a 2 to 3 week correction.
River Twice Capital’s Zachary Karabell suggests Wall Street is foolishly undervaluing strong earnings and economic fundamentals.
All four of these names have very strong cash flows that allow them to not only pay better than 3% dividends, but also to buy back stock. Two are consumer staples, a sector that's been the S&P 500's second-best performer over the past month (up 3.83%). The others are in health care, which has been the S&P 500's No. 3 best sector (+3%) during the past month.
A recent survey by Bank of America Merrill Lynch found that more than 80% of professional fund managers say that a trade war is their biggest concern, yet you would not notice it by the performance of the U.S. equity markets.
In fact, all recessions since the 1970s have been preceded by term spread turning negative (an inverted yield curve). As we enter the 108th month of the current expansion, the second longest in U.S. history, and the yield curve flattens to levels not seen since 2007, it's logical for investors to fear a recession may be on the horizon. Using the last five recessions as our guide, we calculated the average time-span between term spreads falling below 50 basis points and inverting, and the average time-span between inversion and the start of a recession.
Trump also said the strong gains in the stock market since his election give him the opportunity to wage a trade war, noting: “We’re playing with the bank’s money.” U.S. Treasury yields rose on Friday as investors ignored criticism of U.S. Federal Reserve monetary policy by President Trump.
Tariffs are starting to bite big manufacturers and Wall Street could get another bout of caution and uncertainty from major industrial companies when a swath of reports comes in over the next week. Investors are worried about the impact on earnings should the United States' trade war with China and other major trading partners escalate. "If today's political rhetoric intensifies and translates into actual protectionist policies, it will be a negative for all businesses in the U.S. and abroad, including ours," Hamid Moghadam, chief executive of supply chain management company Prologis, warned on a conference call on Tuesday.
The S&P 500 has been a bit flat during the week, as we continue to dance around the 2800 level. This is an area that will have a lot of psychological importance attached to it, but I think at this point the overall attitude is one of persistence, so that may win out in the end.
The S&P 500 was very choppy in the week on Friday, reaching just above where we opened in the CFD market. As I record this, it looks as if the 2810 level is going to offer significant resistance. I think that resistance extends higher, so at this point I don’t think the market is quite ready to take off.
Investors seeking income have frequently found it in the S&P 500’s telecom sector, which was recently yielding 5.8%. The revamped telecom sector, which will be renamed communications services, will add companies such as Alphabet (GOOGL) and Facebook (FB). Part of the idea is to offer a sector that more accurately reflects the big changes in telecom companies as they blend with content providers.
President Donald Trump took on the Federal Reserve, telling an interviewer that he’s “not happy” about rising interest rates, the kind of meddling we haven’t seen in a while. “The markets can overreact, treating missteps as serious policy errors,” Lee explains.
U.S. stocks inched lower Friday, ending the week little changed, as White House comments on monetary policy sent the dollar and government bond prices sliding. Major indexes struggled to break higher throughout the week as investors parsed dozens of earnings reports and rebukes from President Donald Trump on Federal Reserve policy. A White House official told CNBC that Mr. Trump was worried the Fed would raise interest rates twice more this year.
Starbucks Corp. has been awarding shares to baristas since the 1990s. The company says it has granted more than $1 billion in equity under its “Bean Stock” program. It currently offers restricted stock vesting over two years to nearly all employees.
In some editions Friday, Secretary of State Mike Pompeo’s first name was omitted in a Page One article about a planned fall summit between President Donald Trump and Russian President Vladimir Putin. The “Mutual-Fund Yardsticks” table in the July 9 Journal Report contained incorrect one-year returns for all of the fund categories.
Earnings are expected from a third of S&P 500 companies in the week ahead, and there will also be an important report card on the economy, with second-quarter GDP expected to be the strongest in four years....
The Dow Jones Industrial Average finished lower on the day, but not enough to really count. •...and explain why State Street (STT) sank to the bottom of the index. The S&P 500 rose 0.52 point this week after dipping 0.1% to 2801.83 today, while the Dow Jones Industrial Average advanced 38.71 points, or 0.2%, this week after declining 6.38 points today to 25,058.12 today.
S&P Investment Advisory Services portfolio manager Erin Gibbs on what’s holding the stock market back from another major rally.