A Mixed Start To Second Quarter Earnings

There was a mixed start to second quarter earnings. Some have attempted to draw broad based conclusions, however, I think such is fruitless if not impossible. Perhaps the only concrete comment to make is earnings must exceed expectations so as to not be punished. Such may be the case for the market leaders because according to RBC, on almost every valuation variable, they are priced at record multiples, a record by a wide margin.

Changing topics, trade tensions are simmering just below the surface. China’s monthly trade surplus with the US rose to a record in June and exports to the nation also soared, underlining the cause of the escalating trade war. What trade headlines will be made this week?

The economic calendar is comprised of several manufacturing statistics for housing data in the Beige Book. Little reaction is expected.

Commenting about Friday’s market action, equities were mixed. Technology was flat to down, but energy/industrials were up.

Last night the foreign markets were mixed. London was down 1.13%, Paris was down 0.38% and Frankfurt was down 0.13%. China was down 0.61%, Japan was closed for a holiday and Hang Sang was up 0.05%.