Week-In-Review: Stocks End Mixed As Earnings Season Begins

Byinfo@50park.com

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.

Mon-Wed Action:

Stocks rallied on Monday helping the Nasdaq post a 7-day win streak as earnings season continues in droves. So far, analysts are expecting Q2 earnings to grow by +6.2%. Stocks were mixed on Tuesday as the Nasdaq rallied while the Dow fell. Bank of America and Goldman Sachs both fell after reporting earnings while shares of Netflix soared after reporting a big jump in subscribers. On Wednesday, the major indices hit new highs on the back of the latest round of earnings. Elsewhere, Housing starts vaulted +8.3% last month, hitting their highest level since February 2017. Separately, Mortgage applications, rose +6.3%.

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…

Similar Posts

  • Stocks Jump As China Eases Debt Woes

    Byinfo@50park.com

    Thursday marked Day 3 of a new rally attempt for the benchmark S&P 500 Index and Day 1 for the other major averages. That said, as long Tuesday’s lows are not breached in the S&P 500, the earliest a proper follow-through day (FTD) could occur would be Friday. However, if at anytime Tuesday’s S&P 500 Index lows are breached, then the day count will be reset. What does all of this mean for investors? Simple, the market remains in a correction which reiterates the importance of adopting a strong defense stance until a new rally is confirmed. Trade accordingly.

  • 50 DMA Line Is Support

    Byinfo@50park.com

    Market Action- Rally Under Pressure; Week 26 Ends
    It was encouraging to see the bulls show up and defend the major averages’ respective 50 DMA lines recently which is a healthy sign. From our point of view, the market remains in rally-mode until those levels are breached. The tech-heavy Nasdaq composite and small-cap Russell 2000 indexes continue to lead evidenced by their shallow correction and strong recovery. However, it is important to note that stocks were a bit extended in recent months and this pullback (back to the 50 DMA lines) is very healthy as it shakes out the weaker hands and restores the the health of this bull market. If you are looking for specific high ranked ideas, please contact us for more information.
    Are You Looking For Someone To Manage Your Money?
    Our Private Wealth Management Services Can Help You!

  • Earnings Season Begins

    Byinfo@50park.com

    Market Outlook- In A Correction:
    The major U.S. averages are still in a “correction” as they continue to bounce towards resistance of their 2-month base. The latest follow-through day (FTD) which began on August 23, 2011 has officially ended which means we will continue “counting” days before a new rally can be confirmed. In addition, it is important to note that the bulls scored a victory since many of the major averages closed above their downward sloping 50 DMA lines for the first time since late July! The next stop is September’s highs and then their 200 DMA lines. Our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. . If you are looking for specific help navigating this market, please contact us for more information.
    Save Over 50%!
    Limited-Time Offer!
    www.FindLeadingStocks.com

Leave a Reply

Your email address will not be published. Required fields are marked *