As earning season is winding down, this week we have a normal economic calendar. Housing data and retail sales remain strong while jobless claims and industrial production remain important to the recovery. Politics, market moves and the ever-present virus tower over the economic calendar, trade and invest with the facts, not the headlines of the news.
A great post on how we can beat this virus. It is not what you think. It is not one thing, but a layering affect that will help tame it. The Swiss cheese respiratory virus pandemic defense. Makes the best sense so far, and it is not reported in the news at all.
Stay home and trade smart.
Happy Monday. Good Luck out there this week.
Global Spotlight
EU-U.K. talks to resume. Free trade negotiations between the European Union will resume on Sept. 28, just two days before the deadline that Brussels gave London to scrap its controversial Internal Market Bill.
Progress on Nigeria’s long-awaited oil reform bill. Nigerian President Muhammadu Buhari has reportedly signed off on the newest version of the country’s Petroleum Industry Bill, which could be submitted to the Senate as soon as next week.
Hong Kong protesters may defy National Day demonstration ban. With Hong Kong’s controversial extended legislative council term beginning soon and the city’s COVID-19 outbreak easing, the Oct. 1 Chinese National Day holiday will bring an opportunity for protests in the city.
U.S. Secretary of State to visit the Mediterranean. U.S. Secretary of State Mike Pompeo will visit Greece, Italy and Croatia on Sept. 27 to discuss trade, security and religious freedom issues.
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.
This week I looked at the chart from Jill Mislinski from advisor Perspective. It shows a great overview of the S. P. 500. The Index is up alomost 11% YTD.
Bloomberg
Juan Luque provides us with some words of wisdom from the Incline trading desk:
The Utilities sector continues moving strongly towards the Leading sector with a 2.77% return for the week. For a change this week the Energy sector moved upwards amid news of a Covid vaccine, posting a surprising 16.46% return for the week. All sectors in the S&P were up, except the Consumer Discretionary and Information Technology, both moving downwards showing weakening momentum strength. The financials sector moved along the Improving quadrant with an 8.28% for the week and industrials moved closer to the leading quadrant with almost a 6% return. The long term trends remain, while the market responds to positive vaccine tests as infection numbers continue to rise globally.
Earnings
Source I/B/E/S data from Refinitiv
Aggregate Estimates and Revisions
- 20Q3 earnings are expected to be -7.4% from 19Q3. Excluding the energy sector, the earnings growth estimate is -3.2%.
- Of the 462 companies in the S&P 500 that have reported earnings to date for 20Q3, 84.4% have reported earnings above analyst expectations. This compares to a long-term average of 65% and prior four quarter average of 73%.
- 20Q3 revenue is expected to be -1.4% from 19Q3. Excluding the energy sector, the growth estimate is 1.9%.
- During the week of Nov. 16, 12 S&P 500 companies are expected to report quarterly earnings.
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Of Note
I enjoy reading the Visual Capitalist web site. This week, I stumbled across a great pic of some of the not so distant past of tech companies. Theras Wood had a great statement, “Tech’s failing fast philosophy, which is key to business evolution and the pivot, has long been considered a key strategy for business success.” I encourage you to explore the post and the graphic below. As you think about your career or business venture you are working on now, there are no straight lines in success. Digging out of pot holes and climbing mountains will generate new ways of thinking and doing that will help propel your world in new directions.
