In spite of headlines alerting investors that major indexes such as the Dow Jones Industrial Average have declined four weeks in a row, markets are a mere 3 ½% off their all-time highs. More significant than the eye-catching headlines, markets have been acting rationally, punishing companies who haven’t delivered on their earnings and growth promises, while rewarding those that have. Yes, the upcoming June Fed meeting and fears of a potential “Brexit” (Great Britain exiting the Eurozone) are adding to the volatility, and there continue to be some concerns over the broad economic outlook, but overall markets activity has been sensible and calm. The energy sector continues to be amongst the best performers in reaction to rising oil prices, while large-cap pharma stocks are trading on expected consolidation.
Investors will be paying close attention to key earning reports this week from companies like Autozone (S: AZO), Toll Brothers (S: TOL) and Tiffanies (TIF) to get a better reading on the health of the U.S. consumer.
This Week’s Market Moving Events:
Monday: Autozone (: AZO) and Toll Brothers (S: TOL) report, no major economic data points are being released
Tuesday: EU Inflation data, U.S. PMI Manufacturing, New Home Sales, Richmond Fed Manufacturing Activity Index
Wednesday: Home Prices, International Trade
Thursday: Durable Goods, Jobless Claims, PMI Services, Pending Home Sales
Friday: Q2 GDP revision, Corporate Profits, Janet Yellen speaks