Last Week:

S&P gets back over 2,800. The last time the S&P closed over 2,800 was the week of Friday, January 26th.

Q2 earning season got underway last week. While PepsiCo beat their EPS number earlier in the week, last week’s focus was on the big banks that reported on Friday. CitiGroup, JPMorgan and PNC all beat their EPS forecasts. Well Fargo missed slightly.

Inflation measure #1: The Producer Price Index, on a year-over-year basis moved from +3.1% up to +3.4%. If you take out food and energy from the equation the number moved from +2.4% up to +2.8%.

Inflation measure #2: The Consumer Price Index, on a year-over-year basis moved from +2.8% up to +2.9%. If you take out food and energy from the equation the number moved from +2.2% up to +2.3%.

Tariffs and concerns over possible trade wars continue. The U.S. Senate pushed back by overwhelmingly passing a resolution warning President Trump they do not support actions against Canada, Mexico, and Europe.

More tariffs on China: President Trump announced a new 10% tariff on $200 billion worth of Chinese goods. This is on top of a 25% tariff on $50 billion worth of Chinese goods announced earlier. China says they will retaliate, but we only export $130 billion of U.S. goods to China. We don’t know what that retaliation will look like yet.

This Week:

The economic focus of the week: Lots of major corporate names report Q2 earnings this week (see the list below). While June retail sales are reported on Monday, stock earnings will likely be this week’s focus.

Earnings season is fully underway. Companies reporting this week: Abbott Labs, Alcoa, American Express, Bank of America, Blackrock, Cleveland-Cliffs, CSX, Dominos, Fifth Third, eBay, GE, Goldman Sachs, Honeywell, IBM, J&J, Keycorp, Microsoft, Morgan Stanley, Netflix, Noodles & Co, Northern Trust, Philip Morris, Progressive, RPM, Schlumberger, State Street, Union Pacific, UnitedHealth, and Volvo. (NE Ohio companies are bolded).

Indicator focus: June’s retail sales (Mon); 5th Beige Book of the year (Wed); and the Philly Fed Outlook Survey (Thu).

Have a great week.


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