FOURTH QUARTER EARNINGS SEASON COMMENCES TODAY

Fourth quarter earnings season commences today with the release of Citicorp’s earnings.  At time of this writing, 4Q profits are expected to increase around 9%.  For the year, earnings are forecasted to rise around 20%.

All will pay considerable attention to forward looking statements which could revise the 2019 outlook of a 7.7% gain in results.  Generally speaking for the second consecutive quarter value earnings are expected to increase at a rate double of that of growth, a major reason why I believe the market has been met with great volatility.

There is little I can write about Friday’s market action.  Concern is rising about the possible ramifications of the government shut down.  Oil slumped following a 23% surge since its December 24 floor.  Equities were essentially unchanged and Treasuries ended higher by 12/32.

This week the averages may be impacted considerably by profit results.  Some economic releases will be delayed because of the shutdown thus suggesting the averages my trade in a void.

Last night the foreign markets were down.   London was down 0.94%, Paris down 0.80% and Frankfurt down 0.66%.  China was down 0.71%,  Japan closed for a holiday and Hang Sang down 1.38%.
The Dow should open considerably lower over Chinese growth concerns and the growing concerns over the government shutdown.  The 10-year is up 7/32 to yield 2.68%.

 

The views expressed herein are those of Kent Engelke and do not necessarily reflect those of Capitol Securities Management. The information contained herein has been compiled from sources believed to be reliable; however, there is no guarantee of its accuracy or completeness. Any opinions expressed are statements of judgment on this date and are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated or projected. Any future dividends, interest, yields and event dates listed may be subject to change. An investor cannot invest in an index, and its returns are not indicative of the performance of any specific investment. Past performance is not indicative of future results. The material provided in Daily Market Commentaries or on this website should be used for informational purposes only and in no way should be relied upon for financial advice. Please be sure to consult your own financial advisor when making decisions regarding your financial management. Members of FINRA and SIPC, Capitol Securities Management is a privately owned full-service retail brokerage and investment advisory firm headquartered in Richmond, Virginia. For nearly 30 years, we have been serving the needs of our investors. Today, more than 200 Capitol Securities Management investment professionals and support staff serve approximately 18,000 customer accounts from Southern Florida to the New England coast.