The Hot Zone
There is a light economic calendar this week, but guess what, it is earning season again.
Global Spotlight
Italy’s political crisis continues. Prime Minister Mario Draghi will address lawmakers in the Italian Parliament on July 20 after his resignation was rejected by President Sergio Mattarella on July 14. During the speech, Draghi he may call for a vote of confidence to see whether he still has a majority.
Sri Lankan lawmakers pick a new president. The Sri Lankan parliament will meet on July 20 to vote on a new president after increasingly violent protests forced former President Gotabaya Rajapaksa to flee the country on July 13 and formally submit his resignation the day after.
Zambia meets with creditors. Zambian Finance Minister Situmbeko Musokotwane announced that the country’s creditor committee will meet on July 18 to discuss debt restructuring under the G-20 common framework.
A Russia-Turkey-Iran summit in Tehran. On July 19, Russian President Vladimir Putin, Turkish President Recep Tayyip Erdogan and Iranian President Ebrahim Raisi will meet in Tehran for talks primarily focused on stabilizing Syria.
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.
- Each week there are zones where trading can get wild. I call these the hot zones.
- Inflation grows in June after posting 9.1% Gain
- Software stocks were hurt by downgrades
- PPI jumps because of the high energy costs
- Weekly Jobless claims increases
- Retail sales and Consumer Sentiment rise more than expected, a positive.
Earnings
Source I/B/E/S data from Refinitiv
Aggregate Estimates and Revisions
- 22Q1 Y/Y earnings are expected to be 11.3%. Excluding the energy sector, the Y/Y earnings estimate is 5.2%.
- Of the 495 companies in the S&P 500 that have reported earnings to date for 22Q1, 77.4% have reported earnings above analyst estimates. This compares to a long-term average of 66% and prior four quarter average of 83.1%.
- During the week of Jun. 6, 3 S&P 500 companies are expected to report quarterly earnings.
Macro Market
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