Stocks have trended higher in July, though with reluctance due to the trade issues, but has been supported so far by second-quarter earnings season, which has showed both strong growth in earnings and sales. Companies beating earnings remains pronounced due in part to inflated earnings from QE-related stock buybacks.
While this partially offsets fears of a potential global trade war, any greater anti-trade moves by the US could pull markets lower.
Futures are roughly flat at the time of this writing as markets look set to respond to more developments on the trade-tensions front as Juncker, the European Union’s top official, meets Trump at the White House to try to de-escalate the president’s trade fight with the EU.
Focus List Notes:BZUN, FTNT, NFLX, and SQ all posted outside reversals to the downside yesterday on heavy selling volume. The reversals have a bearish tone and investors should be on high alert for any potential breaches of trailing stops and near-term support.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.