Happy Monday. Good Luck out there this week.
Global Spotlight
The Israeli cabinet can begin to discuss West Bank annexation on July 1. While the government of Prime Minister Benjamin Netanyahu has avoided announcing its exact plans, it is likely that between now and the U.S. presidential election in November that Israel will formally annex some West Bank settlements.
On July 1, Hong Kong will mark the anniversary of the 1997 British handover to Chinese control, an occasion that has been typified by protests, most notably in 2019 when hundreds of thousands turned out.
The United States–Mexico–Canada Agreement (USMCA) will go into effect on July 1. The new trade agreement seeks to modernize the old trade agreement between the three countries.
On July 1, Russia will hold the main and final day of voting in its constitutional referendum. The constitutional amendments will reset President Vladimir Putin’s terms (meaning he will still be able to serve two more). But the changes will also implement limited separations between the authorities of the president and the Russian State Duma over particular appointments of cabinet members.
In France, the second round of municipal elections on June 28 could seal President Emmanuel Macron’s fate. If Macron’s La Republique en Marche (LREM) party performs poorly as expected, the president could dismiss the prime minister and appoint a new government in an attempt to restart his presidency.
Stratfor.com
Economic Calendar
Briefing.com has a good U.S. economic calendar for the week. Here are the main U.S. releases.
Briefing.com
Last Weeks Numbers
Review Last weeks numbers here.
Earnings
Source I/B/E/S data from Refinitiv
Aggregate Estimates and Revisions
- 20Q1 earnings are expected to decrease 12.7% from 19Q1. Excluding the energy sector, the earnings growth estimate is -12.0%.
- Of the 499 companies in the S&P 500 that have reported earnings to date for 20Q1, 65.1% have reported earnings above analyst expectations. This compares to a long-term average of 65% and prior four quarter average of 74%.
- 20Q1 revenue is expected to decrease 1.4% from 19Q1. Excluding the energy sector, the growth estimate is -0.4%.
- During the week of June 22, six S&P 500 companies are expected to report quarterly earnings.
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