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After more accommodating communications from the US Federal Reserve that propelled US equities to record levels last week, second-quarter earnings will be the next test for equity investors.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The traders of the week will have something to do with it. drive between, between the season of the results of the beginning and the second quarter, hearings on the controversial new Facebook project on cryptocurrency and & nbsp;The party on the first day of Amazon. "data-reactid =" 16 "> Traders will have a lot to do this week, between the early second quarter earnings season and hearings on Facebook's controversial new draft on new cryptocurrency and extravagance Prime Day of Amazon.
The season of results begins
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Big banks, including JP Morgan Chase (JPM), Goldman Sachs (GS), Morgan Stanley (MRS) and Bank of America (LAC), as well as several big names in technology, Netflix (NFLX) and Microsoft (MSFT) publishes its quarterly results this week, setting the tone for the rest of the second quarter earnings season. Major banks, including JP Morgan Chase (JPM), Goldman Sachs (GS), Morgan Stanley (MS) and Bank of America (BAC), as well as several big names in technology, Netflix ( NFLX) and Microsoft (MSFT), publish their quarterly results this week, setting the tone for the rest of the second quarter earnings season.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Wall Street prepares companies S & amp; 500 publish the & nbsp;worst result in three years& nbsp; current macroeconomic concerns. Consensus analysts expect a decline of about 1% year-on-year in overall earnings per share for the second quarter, due to deteriorating economic indicators, notably ISM and PMI, and rising input costs resulting from a strong labor market. "Data-reactid =" 19 "> Wall Street prepares for the S & P 500 companies to post the worst results in three years in the face of macroeconomic concerns Consensus analysts expect a decline 39, about 1% of overall earnings per share for the second quarter, in a context of deteriorating economic indicators, notably ISM and PMI, and higher input costs due to the strength of the labor market.
"Economic growth is the main driver of sales and earnings growth for the S & P 500," said David Kostin, chief US equity strategist at Goldman Sachs, in a note.
However, Wall Street analysts were just as discouraged before the first quarter earnings season, but companies eventually outperformed.
"Analysts were expecting a 2% year-on-year decline in Q1 of the S & P 500 EPS, similar to the one they recorded for the second quarter," Bank of America analysts Merrill Lynch wrote. "Real BPA 1Q closed with + 3% growth over one year."
For the second quarter, consensus forecasts forecast positive sales growth for the eight sectors of the S & P 500 Index, but a contraction in margins. The communications and financial services sectors are expected to experience the fastest growth in EPS, at 4% and 3%, respectively, notes Kostin.
Sales, sales, sales
<p class = "canvas-atom text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Amazon (AMZN) launches Monday its fourth annual Prime Day blockbuster sale Monday, promising "more than a million transactions worldwide" for Alexa compatible device products with products from many of the company's third vendors. "data-reactid =" 25 "> Amazon (AMZN) launches Monday its fourth annual Prime Day blockbuster sale, promising" more than a million transactions worldwide "for products from Alexa devices and many third-party sellers.
<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "While Amazon has not historically divided sales directly attributable analysts are already predicting unprecedented results: in June, the company & nbsp;rent a party& nbsp; cope with the planned volumes. "data-reactid =" 26 "> While Amazon has not historically divided sales directly attributable to extravagance, analysts are already expecting record results.In June, the company has recruited to cope with projected volumes.
A worker assembles a box for delivery at the Amazon Distribution Center in Baltimore, Maryland, United States, April 30, 2019. REUTERS / Clodagh Kilcoyne
According to a Bank of America Merrill Lynch analysis released on Friday, the gross volume of goods generated during the 48-hour Prime Day opening day is expected to be between $ 5 billion and $ 6 billion. According to estimates from the Internet Retailer research firm, Amazon has generated $ 4.2 billion in Prime Day 2018, $ 2.4 billion in 2017 and $ 1.5 billion in 2016.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Prime Day begins this year at midnight on July 15 Two more Online and physical retailers, such as Target, Walmart, eBay and Kohl's, are also realizing sales coinciding with Amazon's discounted prices, thus creating a halo effect& nbsp; this could boost sales in the retail sector. "data-reactid =" 48 "> Prime Day begins this year at midnight on July 15 and lasts two full days.Other online and hard-line retailers, including Target, Walmart, eBay and Kohl's also showcase their sales on Amazon's discounted prices, creating a halo effect that could boost sales in the retail sector.
Facebook goes to Capitol Hill
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Facebook (FB) is ready to defend his & nbsp;cryptocurrency ambitions& nbsp; to legislators on Tuesday and Wednesday during their testimony before & nbsp;Senate Banking Services& nbsp; and & nbsp;Financial services of the house& nbsp; Committees. "Data-reactid =" 50 "> Facebook (FB) is ready to defend its crypto-currency ambitions to lawmakers Tuesday and Wednesday during a testimony before the Senate Banking and Financial Services Committees.
Facebook's "Calibra", unveiled in June, was developed to create a highly accessible financial system for users around the world, especially those who do not have access to traditional banks, according to the company. However, the grandiose mission has been scrutinized by many US decision-makers.
In a letter to the company's executives just two weeks after the plans were unveiled, House Financial Services Committee Chair Maxine Waters called on Facebook and its partners to "immediately accept a moratorium on any progress on Libra – its proposed cryptocurrency and Calibra – its proposed digital wallet. "
The small toy figures are visible on the representations of the virtual currency in front of the logo of the Libra on this illustration image, June 21, 2019. REUTERS / Dado Ruvic / Illustration
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "David Marcus, head of Facebook's cryptocurrency project , wrote in an answer, the company "took the time to do it right", promising to answer the "important questions" of lawmakers, according to a & nbsp;hill report"Data-reactid =" 78 "> David Marcus, head of Facebook's cryptocurrency project, said the company" was taking the time to do it ", promising to respond to" important questions "from lawmakers, according to a statement report of the hill.
Other US officials have also expressed concerns about their trepidation about the project. Federal Reserve Chairman Jerome Powell said "Libya raises serious concerns about privacy, money laundering, consumer protection, financial stability" at a hearing in Congress on Wednesday.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Meanwhile, President Donald Trump & nbsp;wrote in a Twitter post on Thursday& nbsp; that he "was not a fan of bitcoin and other crypto-currencies", noting that Libra "would have little value or reliability". "data-reactid =" 80 "> Meanwhile, President Donald Trump wrote in a Twitter post Thursday that he was" not a fan of bitcoin and other crypto-currencies, " noting that Libra would have "little value in terms of reliability or reliability".
Economic calendar
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "On Monday: Empire State Manufacturing Survey (2.0 predicted, -8.6 before) "data-reactid =" 82 ">On Monday: Empire State Manufacturing Survey (2.0 expected, -8.6 before)
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Tuesday: Monthly import price index, June (-0.7% expected, -0.3% previously); Retail sales increased month on month, June (0.1% forecast, 0.5% previously); Industrial production in the month of June (0.1% forecast, 0.4% previously); Capacity utilization in MoM, June (78.1% forecast, 78.1% previously); NAHB index of the housing market, July (64 expected, 64 before); Business inventories (0.4% forecast, 0.5% previously); Long-term net ICT flows, May (0.4% forecast, 0.5% previously) "data-reactid =" 83 ">Tuesday: Monthly import price index, June (-0.7% expected, -0.3% previously); Retail sales increased month on month, June (0.1% forecast, 0.5% previously); Industrial production in the month of June (0.1% forecast, 0.4% previously); Capacity utilization in MoM, June (78.1% forecast, 78.1% previously); NAHB index of the housing market, July (64 expected, 64 before); Business inventories (0.4% forecast, 0.5% previously); Long-term net ICT flows, May (0.4% forecast, 0.5% previously)
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Wednesday: MBA mortgage applications, week ended July 12 (-2.4% before); Housing starts, June (forecast 1.26 million, 1,269 million before); Building permits, June ($ 1.3 million forecast, $ 1.299 million previously); The Federal Reserve publishes the Beige Book "data-reactid =" 84 ">Wednesday: MBA mortgage applications, week ended July 12 (-2.4% before); Housing starts, June (forecast 1.26 million, 1,269 million before); Building permits, June ($ 1.3 million forecast, $ 1.299 million previously); Federal Reserve publishes Beige Book
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Thursday: Philadelphia Fed Outlook, July (5.0 expected, 0.3 ahead); Initial applications for employment, week ended July 13 (216,000 planned, 209,000 previously); Continuation of unemployment claims, week ended July 6 (1.7 million expected, 1,723 million before); Advanced index, June (0.1% expected, 0.0% previously) "data-reactid =" 85 ">Thursday: Philadelphia Fed Outlook, July (5.0 expected, 0.3 ahead); Initial applications for employment, week ended July 13 (216,000 planned, 209,000 previously); Continuation of unemployment claims, week ended July 6 (1.7 million expected, 1,723 million before); Advanced index, June (0.1% expected, 0.0% previously)
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Friday: Michigan University Consumer Confidence Index, Preliminary July (98.6 expected, 98.2 before) "data-reactid =" 86 ">Friday: University of Michigan Consumer Climate Index, Preliminary July (98.6 expected, 98.2 before)
Earnings calendar
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "On Monday: Citigroup (C) before the opening of the market; Charles Schwab (SCHW) after the close of the "data-reactid =" 88 ">On Monday: Citigroup (C) before market opening; Charles Schwab (SCHW) after the market closes
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Tuesday: JPMorgan Chase & amp; Co. (JPM) Goldman Sachs (GS), Wells Fargo (WFC), Johnson & amp; Johnson (JNJ) before the opening of the market; United Airlines (UAL) after the close of the "data-reactid =" 89 ">Tuesday: JPMorgan Chase & Co. (JPM), Goldman Sachs (GS), Wells Fargo (WFC), Johnson & Johnson (JNJ) before market opening; United Airlines (UAL) after the market closes
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Wednesday: Bank of America Corporation (LAC), PNC Financial Services Group (PNC) before the opening of the market; Netflix (NFLX), Crown Castle International (CCI) after the close of the market. "data-reactid =" 90 ">Wednesday: Bank of America Corporation (BAC), PNC Financial Services Group (PNC) before market opening; Netflix (NFLX) and Crown Castle International (CCI) after the close of the market.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Thursday: Morgan Stanley (MRS), Ally Financial (ALLY) before the opening of the market; Capital One Financial Corporation (COF), SunTrust Banks (IST), Microsoft (MSFT) after the close of the "data-reactid =" 91 ">Thursday: Morgan Stanley (MS), Ally Financial (ALLY) before market opening; Capital One Financial Corporation (COF), SunTrust Banks (STI), Microsoft (MSFT) after markets close
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Friday: Cleveland-Cliffs (CLF), Synchrony Financial (SYF), American Express (AXP) before the opening of the "data-reactid =" 92 "> marketFriday: Cleveland-Cliffs (CLF), Synchrony Financial (SYF), American Express (AXP) before market opening
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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck"data-reactid =" 94 ">Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck
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