This week is the heart of 2nd quarter earnings season. Roughly 16% of the companies in the Standard & Poor’s 500 (SPX) will report their results this week. Here is a taste of what’s on the menu for the week:
Monday – Alphabet (GOOGL)
Tuesday – AT&T (T), Verizon (VZ), 3M (MMM)
Wednesday – Boeing (BA), Facebook (FB), Coca Cola (KO), Visa (V)
Thursday – Amazon (AMZN), Starbucks (SBUX), McDonald’s (MCD), Intel (INTC)
Friday – Exxon Mobil (XOM), Twitter (TWTR)
Plus, there are a few other hidden gems of companies reporting which we also own (but that information is kept confidential for paying clientelle).
I did not forget Apple (AAPL) – that comes next Tuesday
As I have written, “we have reached escape velocity.” In my opinion, earnings are accelerating as the economy continues to grow. There are several key concurrent economic indicators which are on the rise: GDP, jobs, consumer sentiment; while, inflation and interest rates remain low. I would add that the S&P 500 price to earnings (PE) ratio, according to my colleague Brian Gilmartin is 16.6. On an historical basis, that is low and far away from the level of 21 which would be a warning sign of a pending market top..
While actual earnings results are paramount; I think that guidance could make it or break it for some stocks, and perhaps the markets as well.
Despite some of the artificial headwinds – trade wars, Mueller investigation, Elon Musk’s musing, etc. – the SPX has retaken the 2,800 level, after digesting recent bull market gains. It stands only 2.5% away from eclipsing its former all-time high level of 2,872. A strong earnings season, not only from the tech world, but also laggard sectors, will help propel the markets to greater heights.
P.S. A very happy and healthy birthday to my father-in-law Arthur !!!
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long AAPL, BA, FB, GOOGL, MCD, V, VZ, SPY, SSO & SPXL — although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, a registered investment advisor specializing in high net worth private wealth management. For more information on investing with LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right hand corner of the website. LakeView Management, LLC is a Nevada LLC, with its principal office located in Henderson, NV and branch office located in Millburn, NJ
Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant, beverage, and agricultural stocks. An individual subscription to the newsletter can be ordered at www.restaurantstox.com Furthermore; Scott is a professor at the Seton Hall Stillman School of Business in South Orange, NJ.
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