The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Feeling better are we?
A weekend’s rest must’ve been all the markets needed because the Nikkei rallied 3.4%, the Hang Seng rallied 2.4%, and Europe rallied 1.3%. As a result, our futures traded up nicely in the premarket and the S&P opened about +40. Headlines were benign and noises out of the White House were encouraging regarding the US/China trade squabble. Private credit concerns eased up and a swelling enthusiasm for earnings season is noticeable. Yields came down some across the curve and risk-on trades won the day.
Today’s session was surprisingly uninteresting. The size of the rally was notable but there were no headline catalysts to discuss and the nature of the price action was smooth and steady. It was as though investors treated last week’s drama as a dream and returned to their normal bullish business without a second thought.
The first major wave of earnings season is almost here. Starting tonight, 88 stocks in the S&P 500 will report this week. If there’s an earning season narrative that will take us a few percentage points higher or lower, it’ll form this week.
Here’s how things have gone so far.
40 S&P 500 stocks reported
36 beat EPS estimates, 4 missed
Beta-adjusted:
Not too inspiring so far but this week will matter more than the first batch of reports.
See you tomorrow.
-Mike
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