Weekly Economic Summary - 7/23/2018Submitted by Miller Financial Group, LLC on July 23rd, 2018
Investors have a lot to keep their eyes on as the week kicks off with ongoing geopolitical worries and a flurry of earnings reports scheduled. U.S. stocks are relatively flat in early trading this morning. Both the Dow and S&P500 will be trying to improve upon two negative sessions in a row while the Nasdaq looks to avoid a fourth straight decline.
President Trump added another storyline to the geopolitical front this weekend with a twitter banter between him and Iranian President Hassan Rouhani on Sunday. Trump responded to comments from Rouhani where he cautioned the U.S. against pursuing a hostile policy against Iran. Trump warned Iran on Twitter to “never, ever threaten the United States again or you will suffer consequences the likes of which few throughout history have ever suffered before.” This exchange caused an increase in oil prices over the weekend which have since subsided.
Earnings season heats up this week with 170 of the S&P500 companies reporting second quarter earnings. Highlighting the busy week will be several tech giants including Alphabet (Google) and Facebook which report after Monday’s close and Amazon which is scheduled to report later in the week. It has been an impressive earnings season so far. Earnings are up 21% for the companies that have reported so far which is providing strong underlying support for stocks.
In economic news, there is a trade-related meeting on Wednesday between European Commission President Juncker and President Trump, an ECB meeting on Thursday and a report on Q2 GDP growth due out on Friday. Investors will have a lot to chew on as the week progresses.
Markets around the world are mixed. European indices are trading mostly lower while most Asian stocks are higher. Gold is down and the dollar is edging higher.
Enjoy the beautiful weather we are having in the Northwest!