WHC Morning Market Note

Providing Market Insights and Returns

Morning Market Update – Monday, July 18

Markets are trying to continue Friday’s rally, DOW FUT +0.82%, S&P FUT +0.72%, NAS FUT +0.93%. A few notable economic events this week but the biggest thing that investors will be watching is the big week of earnings coming this week. Major banks are set to kick off the earnings seasons today followed by NFLX, JNJ, TSLA, AXP, and many more. It will be important to see if companies take this opportunity to lower guidance heading into the slowing economic environment or hold strong, the latter will likely boost stock in the near term but hurt in the long term. Our opinion is that we ultimately need revisions down for SPX earnings until we can get any real “bottom” in this market. At the end of the day, no one likes lower guidance, we will see what happens… Europe and Asian indices are higher across the board, WTI is hovering right below $100/bbl, and gold and silver are up slightly on the USD easing slightly. US 10yr rose slightly but the 2/10 curve still remains inverted. The 10yr chart is one we have been watching, with more confusion than conviction, regardless it’s an important one to keep an eye on. Breaking out of 40+ year downtrend. More to come Future notes should go into more detail with more ideas.  

What we are watching
A gas pipeline between Russia & Europe is currently under maintenance and set to turn back online later this week. Record low water levels in the Rhine river. Sri Lanka still is in a crisis.