{"id":191,"date":"2019-07-15T00:00:00","date_gmt":"2019-07-15T00:00:00","guid":{"rendered":"https:\/\/www.retirementrefined.com\/index.php\/2019\/07\/15\/3069-2\/"},"modified":"2019-07-15T00:00:00","modified_gmt":"2019-07-15T00:00:00","slug":"3069-2","status":"publish","type":"post","link":"https:\/\/www.retirementrefined.com\/3069-2","title":{"rendered":"Earnings Take Center Stage!"},"content":{"rendered":"

Earnings Take Center Stage!<\/strong><\/h3>\n

Fed Still in Spotlight<\/strong><\/h3>\n

Markets Hitting New Highs!!<\/strong><\/h3>\n

 <\/p>\n

This week we begin the avalanche of Corporate Earnings reports beginning with the Banking Industry.\u00a0 After the minutes from last week\u2019s Fed\u2019s meeting and Chairman Powell\u2019s testimony, it is widely believed a rate cut, or 2 or 3, is in the bag!\u00a0 The minutes sited growth risks, muted inflation and uncertainly about trade continue to weigh on the economic outlook, which is the rationale for rate reductions. \"\"<\/p>\n

 <\/p>\n

Jump over the pond and our friends at the European Central Bank (ECB) suggested last week a broad agreement to be \u201cready and prepared\u201d to ease monetary policy as needed.<\/p>\n

 <\/p>\n

Again as the saying goes, don\u2019t fight the Fed!\u00a0 But how long will this work???<\/p>\n

 <\/p>\n

In 2018, earnings rose approximately 20%, making the comparisons for 2019 a bit more challenging.\u00a0 We also don\u2019t have a new tax cut as wind behind the sails.\u00a0 Throw in the fact the China trade issue appears to now be weighing on overall corporate profitability, it makes sense for earnings to be relatively flattish.\u00a0 What is said about guidance for the remainder of 2019 will be extremely important in the short run as most are expecting 2nd<\/sup> Quarter results to be muted.<\/p>\n

 <\/p>\n

Many firms are expecting Earnings to increase by 4% in 2019 over 2018.\u00a0 For this to happen, we\u2019ll need to see a pick-up in corporate profits in the 2nd<\/sup> half of 2019.<\/p>\n

 <\/p>\n

Imagine, if we actually get a trade resolution that makes sense!\u00a0 My guess is we would get a pick-up in growth and profits, and the Federal Reserve would then need to stop talking about further rate reductions.<\/p>\n

 <\/p>\n

 <\/p>\n

Market’s Last Week<\/h2>\n

Most of the major market indexes, except the small cap Russell 2000, are at all-time highs!\u00a0 Who would have thought, with the 4th<\/sup> quarter 2018 correction about rates, the trade issue and slowing corporate profits!!\u00a0 Goes to show us, don\u2019t try to be too cute and outguess the markets!<\/p>\n

 <\/p>\n

Last week had the Dow Jones rising 1.54%, the S&P500 up .82%.\u00a0 The Nasdaq Composite rose .6% and the small cap Russell 2000 down (.34%).<\/p>\n

 <\/p>\n

Internationally we saw both the developed and emerging market stock indexes down by (.54%) and (.75%) respectively.<\/p>\n

 <\/p>\n

Bonds lost a little ground with the 10 year US Treasury yield moving up from 2.04% to 2.11%.\u00a0 Do you think that all three rate decreases being discussed are fully priced into bond pricing? Wish I knew the exact answer\u2026 However, unless things deteriorate more, the answer may be a “yes!”<\/p>\n

 <\/p>\n

Question of the Week…<\/em><\/strong><\/h2>\n

 <\/p>\n

What was the most profitable Company in the World in 2018?<\/p>\n

    \n
  1. \n
      \n
    1. Apple<\/li>\n
    2. Royal Dutch Shell<\/li>\n
    3. Google<\/li>\n
    4. Saudi Aramco<\/li>\n
    5. Exxon Mobile<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

      <\/h2>\n

      Answer to last week\u2019s question\u2026!<\/em><\/strong><\/h2>\n

      1964 All-Star Game was the most recent All-Star Game to end in what way?<\/p>\n

        \n
      1. Rainout<\/li>\n
      2. Walk-Off Home Run<\/li>\n
      3. Player caught stealing<\/li>\n
      4. Triple Play<\/li>\n<\/ol>\n

        The answer is # 2! The 1964 All-Star Game was played on July 7, 1964 at Shea Stadium in New York City.\u00a0 The game ending 7-4 with a victory a National League Victory with Johnny Callison hitting a walk-off home run!<\/strong><\/p>\n

         <\/p>\n","protected":false},"excerpt":{"rendered":"

        Earnings Take Center Stage! Fed Still in Spotlight Markets Hitting New Highs!!   This week we begin the avalanche of Corporate Earnings reports beginning with the Banking Industry.\u00a0 After the minutes from last week\u2019s Fed\u2019s meeting and Chairman Powell\u2019s testimony, it is widely believed a rate cut, or 2 or 3, is in the bag!\u00a0 […]<\/p>\n","protected":false},"author":3,"featured_media":192,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[12,19,10,9,18],"tags":[],"_links":{"self":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/191"}],"collection":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/comments?post=191"}],"version-history":[{"count":0,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media\/192"}],"wp:attachment":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media?parent=191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/categories?post=191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/tags?post=191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}