By Bill Hornbarger, Chief Investment Officer
Three Things to Watch
- This will be the busiest week of the quarter for earnings releases with many prominent tech names reporting. Apple, Microsoft, Alphabet, and Facebook will be the tech companies in focus while Amazon, McDonald’s, Exxon Mobil, and Ford are a few other heavyweight names on the docket. Earnings are expected to be up approximately 70% vs. the same quarter last year and so far 87% of companies that have reported have posted better-than-expected results.
- The Fed has a two-day meeting this week, wrapping up on Wednesday with a press conference. Fed Chairman Jerome Powell is expected to address the recent increase in COVID cases, as well as the Fed’s outlook for inflation. To date, Fed officials have been unwavering in the view that inflation pressures will be transitory.
- Key economic releases include new home sales, consumer confidence and second-quarter GDP. All are expected to be strong, but capture some data prior to the more recent increases in COVID cases.
Three Things to Know
- A majority thought the 2021 Olympics should not be held including 78% of Japanese. 57% of 19,510 adults surveyed in 28 countries thought the Olympics should be canceled this year. South Korea had the highest percentage of negative responses followed by Japan and Brazil. (Source: Ipsos, Statisto)
- So far 118 companies in the S&P 500 have released earnings for the second quarter. Of that number, 103 (87.3%) have posted positive earnings surprises and 96 (81.4%) have posted positive revenue surprises. (Source: Bloomberg)
- Since 1960, the U.S. Congress has raised the debt ceiling 78 times. It has never been reduced. (Source: Office of Management and Budget, Treasury Department, Daniel Lacalle)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.