Week-In-Review: Stocks End Mixed As Earnings Season Begins
Stocks End Mixed As Earnings Season Begins
The broader indices ended mixed while small cap stocks tried to breakout last week as earnings season officially began. Just to recap the first full week of earnings, the data is mixed. So far, nearly all of the big banks reported earnings, and nearly all of them, except for Morgan Stanley, fell on the day they reported. That weighed on the Dow and S&P 500 as investors digested the data. Elsewhere, Netflix jumped to a fresh record high after reporting a big jump in subscribers. Meanwhile, Qualcomm, Microsoft, and eBay all fell after reporting earnings. The good news for the bulls is that the market remains exceptionally strong and the major indices are trading just below their record highs.
Thur & Fri Action:
On Thursday, stocks were quiet as investors digested the latest meeting from the European Central Bank (ECB) and waited for the latest round of earnings to be released. Separately, Bloomberg reported that special counsel Robert Mueller is looking into the business dealings of President Donald Trump, Jared Kushner and other associates. This comes a day after Trump warned Muller against it during an interview with the New York Times on Wednesday. Stocks fell on Friday as investors digested the latest round of earnings data. General Electric (GE), Microsoft (MSFT), eBay (EBAY), and a few other well known stocks fell hard after reporting earnings.
Market Outlook: All Eyes On Earnings
The bulls showed up and defended important support in June which is very bullish for the market. As we have said several times over the past month, as long as support holds, the bulls remain in control of this market. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…