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By Alex Eule
| Monday, July 12 Records
Galore. Across the board, stocks
have never been stronger. Yes, that's just another way of saying that the
major indexes all closed at records. It's a moment worth noting because it
won't always be that way. But, for now, investors are an optimistic bunch.
The worries about inflation have been dispatched. Last week's fears about
Covid variants seemed slightly less acute today, as well. The deck is clear
for what's sure to be a strong earnings season starting this week. The
festivities get started tomorrow morning with JPMorgan
Chase, Goldman
Sachs, and PepsiCo set to
report results. On the eve of those first big
second-quarter reports, investors are expecting overall earnings growth
of 64% for companies in the S&P 500. Yes,
that's impressive. It would mark the strongest growth rate since 2009,
according to FactSet. Of course,
the big numbers also mean that companies and stocks have their work cut
out for them in the coming weeks. Since earnings usually beat estimates,
investors will be expecting growth in aggregate of 70% -- or more. Even that
figure could have trouble moving stocks in the weeks ahead. We'll get a
sense of just how much more investors want to see tomorrow morning as the big
banks to start to report. Don't be surprised to see headlines like: "X
Stock Sags Despite Huge Earnings Beat." For
today, though, investors were still buying in anticipation of positive
news. The S&P 500 rose 0.3% to its 39th record close of 2021.
The Nasdaq Composite was up 0.2% -- its 24th record of the year.
The Dow Jones Industrial Average added 126
points, or 0.4%, on its way to a 27th record this
year. |
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DJIA:
+0.36% to 34,996.18 The Hot
Stock: Albemarle +6.8% Best Sector:
Financials +1.0%
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