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.
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