Homepage / Investment / The big stock-market drivers this week: Earnings and central banks
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Investment

The big stock-market drivers this week: Earnings and central banks

What looked like a robust picture for corporate profits got a little less buoyant last week when big banks turned in reports that left the market disappointed.

But even as financial stocks took a tip at week’s end, it really didn’t matter: The Dow still gained more than 1 percent for the week as it looks like there’s just nothing out there that can stop this market. Perhaps, then, some caution is in order.

Here are the events in the week ahead that investors will be watching:

This week was supposed to be all about health care as Republican lawmakers were expected to present yet another legislative package that would repeal and replace Obamacare. However, Republican Sen. John McCain had unexpected surgery to remove a blood clot from above his eye on Friday. With the vote already tight, Senate Majority Leader Mitch McConnell said a vote would not occur until McCain returns. At this point, it is unclear how long it will take McCain to recover. Some reports suggest it could be a few weeks.

Earnings season picks up this week, so that will give investors something to chew on.

Profit reports from JPMorgan Chase, Citigroup and Wells Fargo left traders with a bit of a meh feeling Friday, but it’s otherwise been a fast start to earnings season.

With just a fraction of S&P 500 companies reporting, 80 percent have beaten analyst estimates on the bottom line and a blistering 83 percent have exceeded projections for sales. If you’re wondering whether there’s hope for this slow-moving economy of ours, that second number should get your attention.

The market sure seems happy so far, with profits overall expected to grow 6.6 percent, according to FactSet.

On tap this week is a slew of companies. Some highlights:

  • Monday: BlackRock, Netflix.
  • Tuesday: Bank of America, Goldman Sachs, Johnson & Johnson, IBM.
  • Wednesday: Morgan Stanley, American Express, Alcoa.
  • Thursday: Travelers, Microsoft, Visa.
  • Friday: GE, Honeywell.

In the U.S. there’s not a lot on tap regarding economic news. Of course we all know what that means: More time to watch the salacious headlines coming out of Washington on the Russia investigation and, well, we can only guess what else.

Across the pond, investors will be watching what the European Central Bank — the continent’s equivalent of the Federal Reserve — will have to say Thursday about interest rates. Japan’s version is the Bank of Japan, and it will release its latest proclamation on Tuesday.

Yes, this stuff is esoteric and not always accessible to the average investor, but what central banks do does matter. Whether they decide to keep policy loose or start tightening will be one of the pivotal factors in determining where markets go.

QMA is a business of Prudential Financial and its managing director Ed Keon, a frequent guest on CNBC, has been a long-time optimist about the stock market. Lately, however, the firm has turned cautious.

Strategists there offer some words of wisdom this week on why:

“So have equities come too far too fast and are we overdue for a pullback? We think in general the answer is yes. We have not seen a meaningful pullback in stocks in roughly 18 months (during the last China growth scare), when historically the average time between equity pullbacks of 5 percent or more is two to three months. Further, stocks and other risky assets look stretched and somewhat pricey against a very low volatility backdrop. So, we think investors are bordering on complacent and the usual fears of a summer swoon are probably more justified than not this year.

“Currently, we are positioned cautiously and not straying too far from our policy benchmarks in our multi-assets portfolios. We are neutral on U.S. stocks and modestly overweight EAFE (developed markets outside the U.S. and Canada), where we believe valuations are better and earnings still cyclically depressed and thus have more room to run. The euro area in particular is several years behind the U.S. in terms of business and monetary policy cycles and its economic prospects are the best they have been in a decade. The promise of structural reform in France, following the election of centrist reformer Emmanuel Macron in June, is also constructive. But the upcoming election in Italy bears watching.

“While we are wary near term, we do not believe a recession or bear market is imminent, so we are inclined to view any meaningful pullback as an opportunity to add exposure. The bull market is at a mature stage, but we do not believe it is ready to roll over just yet.”

So it’s basically just a word to the wise rather than a note of alarm. But it’s worth noting a cautious tone from a long-term market bull.

Source: Investment Cnbc
The big stock-market drivers this week: Earnings and central banks

Comments are closed.