Weekly Economic Summary - 7/31/2017Submitted by Miller Financial Group, LLC on July 31st, 2017
U.S. stocks continue to show resiliency following a week of less than stellar earnings reports and concerning geopolitical factors around the world. Early in the session this morning, the Dow is continuing to trade in record territory, up over .25%, while the S&P500 and Nasdaq are edging lower. On Friday, the S&P500 and Nasdaq both finished with losses for the week but the Dow shook off early declines and finished the day at a record high, booking a 1.2% gain on the week.
The Nasdaq was weighed down last week following a disappointing earnings report from Amazon on Thursday. Amazon dropped nearly 4.3% and came close to breaching its 50-day moving average after reporting a 77% plunge in second quarter earnings. Despite the poor report, the broad market overall didn’t buckle to the selling pressure with the three major benchmarks closing out Friday with mixed results. With the exception of Amazon, earnings reports have been mostly positive with few surprises. As of Friday, 57% of companies in the S&P500 have reported with 73% of those companies beating both earnings and sales estimates.
The geopolitical front didn’t offer much good news over the weekend with continued turnover in the White House, another North Korea missile launch and Russia ordering the U.S. to cut 755 diplomatic positions. Additionally, the failure of a Republican led attempt to repeal or replace Obamacare continues to be a road block for Trump’s ability to deliver on pro-growth promises which have tested investors patience.
On the docket for this week is July’s jobs report, which is often a market-moving event. Additionally, Apple’s quarterly earnings announcement on Tuesday will be closely watched by market participants.