We still have a mixed bag of fantastic earnings and uncomfortable economic news. Today we first picked up a bearish sentiment and later in the day the news got digested and turned into a more positive outlook.
What is going on?
Our summary: American Corporations got more efficient and will never rehire the amount of people they worked with prior. Basically the Government now employs all those qualified and willing to work people on the unemployment role. Europe has that problem since 30 years, now America got hit. The economy is growing. This week we have seen consumer companies and all others reporting growth in revenue and fantastic earnings. What was shown in earnings is just fabulous. When stocks are measured on P/E (price/earnings) we have a season of growth in front of us. But on the other side America has to get used to 10% unemployment and needs to restructure taxation, healthcare and lending policies, which will affect three big and influential Dow and S&P sectors: Financials, Banking, Healthcare. With an overall need for restructuring value added tax and the entire taxation system, all sectors will take a beating. But you know what: there is no place like America in respect of dealing with changes –whatever comes along will be turned into being ahead of the world and more profitable.
For all financial market investors times of as season of uprising stock prices based on growth and profitability is ahead of us, followed by beaten down bear rallies on every change in lending, taxation and healthcare that will need to come our way. For those who like to make money through financial market investments (401(k), IRA, Personal, Custodian, Margin Accounts) in the next 5-10 years, you better learn to make money in up, down and sideways markets bye hedging and leveraging your investments: NeverLossTrading.com is here to teach you.
Today July 30, 2017, Thomson Reuters and the University of Michigan released their final report on consumer sentiment in the month of July, showing that the consumer sentiment index was upwardly revised by more than expected but continued to show a notable deterioration in sentiment compared to June. The report showed that the consumer sentiment index for July was upwardly revised to a reading of 67.8 from the preliminary estimate of 66.5. While the revised reading came in above economist estimates of 67.5, it remained well below the June reading of 76.0. Whatever face lifting we do, consumers are not confident in the economy yet. The high unemployment with no clear solution brings a Bearish Sentiment.
Richard Curtin, Surveys of Consumers chief economist, said, "Scarce jobs and stagnating incomes have been the top concerns of consumers for some time."
The Institute for Supply Management - Chicago said its business barometer rose to 62.3 in July from 59.1 in June, with a reading above 50 indicating growth in Chicago-area business activity. The increase surprised economists, who had expected the index to fall to a reading of 56.3. This is sure not a surprise: raising profits and cash on hand give a better outlook: Bullish Sentiment.
The Commerce Department said that gross domestic product: GDP increased at an annual rate of 2.4 percent in the second quarter compared to the revised 3.7 percent jump seen in the first quarter. Economists had expected GDP to increase by 2.5 percent compared to the 2.7 percent growth that had been reported for the first quarter. The economy is growing, price competition still keeps the growth in a smaller scale but overall a Bullish Sentiment.
Earnings News:
Chevron Corp. (CVX) reported second-quarter net income of $2.70 per share, up from $0.87 per share in the same quarter last year. Wall Street analysts expected the company to report earnings of $2.44 per share for the quarter. The firm posted revenues of $51.05 billion, which was short of the $52.52 billion projected by analysts.
Merck & Co. Inc. (MRK) reported adjusted second-quarter net income of $0.86 per share, topping expectations for $0.83 per share. Unadjusted net profit fell by roughly 50 percent to $0.24 per share. Sales for the quarter came in at $11.35 billion, short of the consensus estimate for $11.45 billion.
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