I hope everyone had a great Labor Day weekend.
The futures were down last night as China and U. S. tensions continue. Economic Data over the weekend mostly beat expectations.
Happy Tuesday. Good Luck out there this week.
Global Spotlight
Possible deescalation talks between Turkey and Greece in the Eastern Mediterranean. Although Athens denied a Sept. 3 NATO statement that Greece and Turkey had agreed to technical talks to deescalate heightened tension in the Eastern Mediterranean, quiet efforts at negotiations are likely to continue.
An Ethiopian region challenges Addis Ababa’s authority. The Tigray Region of Ethiopia will challenge Addis Ababa by holding regional elections Sept. 9 that the federal government does not back.
A potential India-China defense ministers’ meeting that might help cool border tensions. Chinese and Indian defense ministers may meet Sept. 10 in Moscow on the sidelines of the Shanghai Cooperation Organization meeting.
A new round of EU-U.K. trade talks. EU-U.K. negotiators will meet for a new round of trade talks Sept. 8 as time to reach a deal before Britain’s exit from the single market on Jan. 1, 2021, is running out.
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. The Weekly Sector chart shows the source of the action.
The trends are tricky to spot in this chart. Energy continues to march on its own path. Weather may have some input into that action. Materials and semis are weak, whil Utes and Staples are showing strength. Remember Bloomberg adds “S5” at the start of each name.
Earnings
Source I/B/E/S data from Refinitiv
Aggregate Estimates and Revisions
- 20Q2 earnings are expected to be -29.7% from 19Q2. Excluding the energy sector, the earnings growth estimate is -23.0%. (this metirc is getting better)
- Of the 498 companies in the S&P 500 that have reported earnings to date for 20Q2, 82.5% have reported earnings above analyst expectations. This compares to a long-term average of 65% and prior four quarter average of 71%.
- 20Q2 revenue is expected to be -8.8% from 19Q2. Excluding the energy sector, the growth estimate is -4.0%.
- During the week of September 7, two S&P 500 companies are expected to report quarterly earnings.
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