The Monthly Market Minute
- Caterpillar launched the Dow in the second quarter after posting its earnings
- The Dow seeks the fourth daily profit in five sessions
- Meanwhile, both the S & P 500 and Nasdaq are trying to maintain the fourth monthly profit.
Caterpillar Inc. (CAT) stronger than expected results helped put the Dow Jones Industrial Average higher after the group had achieved projected profits and raised its full-year guidance despite higher production costs and higher earnings the risk of export duties in some of its key markets having exceeded its own high watermark for future profits.
The Dow Jones Industrial Average
Facebook Inc. (FB) slipped $ 119 billion last week, along with below-average quarterly results from FAANG member Netflix Inc. (NFLX) and chipmaker Intel Corp. (INTC) put investors on the defensive headline later this week on Wall Street, as Amazon Inc. (AMZN) forecast figures calmed nerves and suggested a moderate decoupling of stocks in a sector that was the lion's share this year made up for the gains in the US stock market.
Corporate earnings, at 22.7%, are expected to be the second-fastest in the last eight years, surpassing only 23% in the first three months of the year as the economy records its best ever GDP growth since mid-2014
"I do not think this is a one- or two-year phenomenon, and I think we are definitely in a four or five year period with at least 3 percent growth," US Treasury Secretary Steven Mnuchin told Fox News Sunday.
US GDP rose 4.1% in Q2 and 2.8% in Q2. That's the fastest growth rate in 3 years. I never really understood why so many were so bearish in the US economy for so long. Hopefully economists are also "market-to-market". pic.twitter.com/Bwsjl5DCcX
– Teis Knuthsen (@TeisKnuthsen) July 30, 2018
Investors will not have to wait long to find out if the technology will continue in the near future However, Apple Inc. (AAPL) will release its third-quarter results after the close on Tuesday. FactSet estimates that the group based in Cupertino, California, will report an EPS of $ 2.16 per share for the third quarter, a 29% increase over the same period last year, with revenues of $ 52.3 billion  Corporate reporting with expected revenues of 140 S & P 500 listed companies including Lowe & # 39; s (L). Pfizer Inc. (PFE), Procter & amp; Gamble Co. (PG), Telsa Inc. (TSLA), CBS Corp. (CBS) and Warren Buffets Berkshire Hathaway Inc. (BRK.A)
Global stocks drifted Monday, tech stocks weighed on benchmarks in Europe and Asia, following some disappointing results from key positions in the so-called FAANG complex last week market growth prospects in the second half of the year.
Tech stocks remain in Asia During most of the session, markets remained in check, causing the MSCI Asia ex-Japan index to slide 0.39% lower into the closing price, while the Japanese Nikkei 225 0 , Lost 74% and finished the day at 22,544.84 points. Tencent Holdings (TCEHY) fell 2.68% on China's CSI 300, while Alibaba Group Holdings (BABA) saw a fall of 2.45%. Baidu Inc. (BIDU) was also significantly lower, dropping 2% in China to lower its profit from the start of the year to just over 7%.
Sector overhang also drifted into European trade, although the influence of technology In terms of key benchmarks in the region is far less than in Asia or the United States. The Stoxx 600 index fell by 0.3% to 391.43 points by midday in Frankfurt, with technology stocks down 0.71% and all sectors down
. Consumer markets will also have much to chew on this week's payday Friday data, trapped between a two-day Fed meeting that begins tomorrow in Washington amid recent criticism of President Donald Trump's interest rate policy. The CME Group's FedWatch tool has little chance for interest rate hikes this week, but praises a 88.7% chance of a September rate hike and a 63.7% chance that the prime rate will remain flat until the end of the year Will reach 2.25%.
Changes to the #Fed release this week will be modest, with a slight risk of a Hawkish twist. A stronger flattening of the USD curve is the most likely outcome. https://t.co/gEHVPtwQMc pic.twitter.com/JYDsXgXAnv
– Jan von Gerich (@JanVonGerich) July 30, 2018
Also, the Bank of Japan will wrap up two-day Tomorrow's policy session, which could include changes to its $ 800 trillion annual quantitative easing program, could erode the appetite for the so-called "carry trade," which allows investors to borrow loans in yen and the US government buy bonds that offer much higher returns. The expectation of these changes has led 10Y US Treasury yields to rise closer to 3% last week, with overnight movements in early European trading at 2,984%. However, global oil markets were firmer as prices rose higher with concerns that Saudi Arabia's suspension of crude oil shipments through the Bab al-Mandeb Strait in the Red Seas through supplies to other parts of the world and a strike in the North Sea Stifling oil miners on a platform and delaying them by the French Total SA (TOT) could create further bottlenecks.
The Brent crude oil contracts for September delivery, the global benchmark, were rated 85 cents higher on Friday's closing price in New York and moved to 75.14 per barrel in early European trading. WTI contracts for the same month, which are more closely linked to US gasoline prices, were seen to be 1.59 cents higher at $ 70.28 a barrel.