Earnings season moves into full swing this week. Some have stated that guidance will be more important than usual to support current and future gains.
At casual glance, the above statement about guidance has been echoed in almost every other earnings season. However, can companies post forward looking statements given the uncertainty in so many dimensions?
Both TSLA and GOOG post results Wednesday after the close.
As noted yesterday, the S & P 500 has not had a 1% move in either direction in eighteen days, the longest stretch since December. Will volatility return, which is typically the case following a period of complacency?
Commenting about the Treasury market, following a drubbing prior in the month, Treasuries rallied across the curve as the demand for this safe haven was fanned over concerns of the August 1 tariff deadline.
What will happen today?
Last night the foreign markets were down. London was down 0.09%, Paris down 0.88% and Frankfurt down 1.08%. China was up 0.62%,, Japan down 0.14% and Hang Seng up 0.54%.
Futures are little changed as uncertainty over tariff is again rising. The 10-year is off 3/32 to yield 4.39%.
Kent Engelke
Chief Economic Strategist Managing Director
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