Welcome to Fed week. This week the FOMC will annouce the rate decision on August 1st, at 2:00 pm EST.
During the week of Jul. 30, 141 S&P 500 companies are expected to report quarterly earnings. 265 companies in the S&P 500 have reported earnings to date for Q2 2018. Of Of those, 82.3% have reported earnings above analyst expectations, above the long-term average of 64%. The energy sector and the materials sector have the higest growth rates.
Global Spotlight
Be Wary of the Trade Cease-fire. Many were relieved July 25 to see U.S. President Donald Trump and European Commission President Jean-Claude Juncker announce a “deal” to de-escalate trade frictions, but we remain skeptical that this will yield an actual trade agreement.
The Building of an Iran Crisis. While the White House was busy threatening war and promoting regime change in Iran, Iranian President Hassan Rouhani scored points with his own hard-liner opponents when he threatened to close “more than one strait” to global shipping, earning him the title “Lord of the Strait” by one conservative media outlet.
Going Beyond Goodwill Gestures With North Korea. The White House will have more room to turn up the dial on Iran — and risk a military confrontation in the process — if it can manage to keep North Korea on a constructive diplomatic path. Pyongyang’s move to dismantle a key missile-testing site and to return U.S. POW/MIA remains were notable goodwill gestures.
A Geopolitical Conundrum for U.S. Airlines. China singled out four U.S. airlines for “incomplete” compliance with an initial July 25 deadline, as Beijing wages a campaign to force international carriers to conform to its demands on how they label Taiwan.
Elections in Zimbabwe. Zimbabwe’s July 30 general elections will likely be contentious as questions remain over whether the ruling Zimbabwe African National Union-Patriotic Front party can ensure free, fair and credible elections. Securing a strong mandate will be crucial for the current president, Emmerson Mnangagwa, as he seeks to turn the page on the Robert Mugabe era and reform the country’s broken political and economic systems.
Stratfor.com
Economic Calendar
Here isa a list of the U.S. economic events happening this week.
Briefing.com
Review Last weeks numbers here.
Sector Strength – Change in the last 3 months.
Earnings
Thomson Reuters I/B/E/S
