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Commentary: Paul Ebeling on Wall Street, Q-2 Earnings’ Season in Full Swing

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$DIA $QQQ $RUT $VXX $SPY $SPX$TSLA $AAPL $GOOGL $MSFT $AMZN $USD $USO

Q-2 earning season is in full swing as more than 33% of S&P 500 (SPX) is set to report Quarterly results this wk, headlined by Facebook Inc, Tesla Inc, Apple Inc, Alphabet Inc, Microsoft Corp and amazon.com.

Just over 20% of the S&P 500 have reported, 88% of firms have beaten the consensus of analysts’ expectations. And global money managers have poured more than $900-B into US funds in 1-H of Y 2021.

What happened last week

The big-name tech stocks took their turn at leading as the indices turned in a performance that was skewed toward the large-cap stocks.

We saw lots of news, but the number of jobless claims, existing home sales and earnings were the Key drivers.

Small and mid-cap stocks, as well as some big industrial stocks, struggle a bit respective resistances.

Meanwhile, the benchmark 10-yr T-Note yields have stabilized at just below 1.3%.

What is happening

The week is packed with US data that should underline the economy’s outperformance.

Q-2 GDP is forecast to show annualized growth of 8.6%, while the Fed’s favored measure of core inflation is seen rising an annual 3.7% in June.

The Fed meets on Wednesday and, while no change in its dovish policy is expected, Chairman Powell will be pressed to clarify what “substantial further progress” on employment looks like.

The bond market is not troubled by the prospect of eventual tapering as yields on the benchmark 10-yr T-Note having fallen for 4 wks running to stand at 1.28%.

The fall has done little to undermine the Buck, in part because European yields have fallen even further on expectations of continued massive bond buying from the European Central Bank.

The rise in USD has offset the fall in bond yields, and has gold range-bound around 1,800oz.

Crude Oil prices have fared better amid wagers demand will remain strong as the global economy gradually opens and supply stays tight.

What to expect

All of our technical indicators are Bullish with a Very Bullish bias in here. Stocks are looking a bit over bought, so a pause to refresh may happen at the Top of the ranges.

Have a prosperous week, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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