As US markets shrug off trade fears and now focus on corporate earnings we may see volatility decrease with SPX trading within the newly formed channel. MACD looking healthy on both Weekly and Daily charts.
JPM and C posted strong earnings citing increased deal-making and investments due to increased recent tax cuts increasing cash on hand. A flattening yield curve still remains a concern with three-month yielding 1.98, one-year at 2.34, five-year 2.75 and ten-year at 2.87. This is what is currently causing concern over bank earnings and possible impending recession.
EM still getting destroyed as US dollars strength increases.
XLY, XLE, and XLK are currently carrying the SPX to new highs. Meanwhile, XLP, XLB, and XLI are currently dragging, most likely due to uncertainty around tariffs, these may be good sectors to pick up discounted shares in the future.
Earnings I'm watching for this upcoming week:
NFLX, BAC, GS, MS, ABT, DPZ, MSFT, ISRG, GE
JPM and C posted strong earnings citing increased deal-making and investments due to increased recent tax cuts increasing cash on hand. A flattening yield curve still remains a concern with three-month yielding 1.98, one-year at 2.34, five-year 2.75 and ten-year at 2.87. This is what is currently causing concern over bank earnings and possible impending recession.
EM still getting destroyed as US dollars strength increases.
XLY, XLE, and XLK are currently carrying the SPX to new highs. Meanwhile, XLP, XLB, and XLI are currently dragging, most likely due to uncertainty around tariffs, these may be good sectors to pick up discounted shares in the future.
Earnings I'm watching for this upcoming week:
NFLX, BAC, GS, MS, ABT, DPZ, MSFT, ISRG, GE
Comment:
BAC posted strong earnings this morning beating expectations of .57 a share with .66 a share. BAC posted up a 33% increase in Q2 profits. Deposits up 4%, Loan growth of 2%, and trading revenue up 7% Banking fees down 7%. Tax cuts dropped tax paid to 1.7b 43% less from the same period last year. Blackrock also posted impressive earnings with revenue growth of 11%, and earnings up 26% from last years Q2. Active trading rose 90% from Q2 2017 most likely due to volatility. BLK is reporting $6.3 trillion under management.
Comment:
GS Reported $2.6b in profit and $9.4b in revenue. EPS was $5.98 beating the $4.66 estimate by 28%. Goldman is still the worst performing big bank in 2018 with shares down around 10%. Soloman will take CEO position. NFLX missed subscriber growth by ‘only’ posting 5.15m new subs, missing the 6.2m est. Streaming rev at 43% operating margin at 11.8%