Message from Jon
This is the second week of earnings for S&P 500 companies. According to Eric Kuby of North Star, 14% have already reported and 81% of those have beaten estimates, making for a good start. 120 more companies are expected to report, combined with a Brexit vote and the remaining economic calendar reports, it should be a dynamic week on Wall Street.1
So far, Prime Minister Boris Johnson has been met with resistance on his Brexit timeline but seems to be making headway on his overall plan for exiting the EU.2 Time will tell how this plays out, but in my opinion, should he get the nod to leave, it could cast a shadow on the Trade War talks for a bit in the headlines and possibly give the markets some sense of optimism.
I have been reporting on political and headline news for what seems like too long now. I have been compelled to do so not out of any interest in politics or great desire to share my opinion, but because the fundamental and technical manner in which we would normally go about determining the health and direction of the markets has seemingly taken a backseat to the tweeting and press coverages that have stood front and center, hijacking investors' emotions and philosophy toward their investment approach. I wish this were coming to an end soon and that we could return to normal market mechanics and data reporting, but in my opinion, I am afraid this will be the norm for at least the next 6-12 months with the election coming into focus here soon.
We are becoming more proactive in our profit taking than normal and still cautious in what and when we buy going forward.
Till we speak again, enjoy your week and keep warm!
Nasdaq Composite, S&P 500 Rise
WEEKLY UPDATE - OCTOBER 21, 2019
The Week on Wall Street
Earnings helped give the Nasdaq Composite and S&P 500 a slight lift last week, offsetting investor disappointment over the small scope of the preliminary U.S.-China trade deal reached on October 11. Blue chips took a small weekly loss.
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