Market Moment
Glen Eagle®: America’s Women-Owned Trading Desk®  
07/26/2021
  • Earnings Extravaganza? :More than one third of the entire S&P500 will report earnings this week (180 companies). According to FactSet, the June earnings that will be reported are on track to rise 74% year-over-year, which would be the largest growth increase since the last quarter of 2009. Regardless of the optimism, however, the sheer volume of reporting creates an opportunity for surprises and potentially increased volatility.
  • Faster and Faster: Over $900 billion has been added to US mutual funds and ETFs in the first half of 2021. This is a the highest inflow of capital since 1992 and is more than the amount of money put into all other areas of the world combined during this same time period. Expectations are that the US economy will grow faster than many developed and emerging markets this year. Additionally, recent performance has skewed investors towards the American market. From 2009-2019 global stocks only returned 5% annually when US equities were excluded but over 10% annually when included.
  • Under Pressure: The increase in Delta virus cases and multiple natural disasters are adding additional pressure to already-constrained supply chains. For example, many Asian countries have prevented ships from offloading sailors to rotate crews. This is creating issues for shipping routes, which are responsible for 90% of world trade. In addition, recent flooding in Germany and China have further impeded economic activity, leading many to believe it may take longer for inflationary pressures to go away.
  • Solid and Boring? Many investors are beginning to look to bank stocks for safe and reliable income. Not only does the SPDR S&P Bank ETF provide a yield of 2.3% but it also provides exposure to a sector that emerged from the pandemic largely unharmed. In comparison, high yield bonds currently provide 4.6% yield, with significantly higher default risk and potentially lower long-term appreciation.
 
 
WSJ – Apple, Amazon, Tesla Among the Giants Set to Post Results
WSJ – Investors Are Buying American
Reuters – Global Supply Chains Buckle as Virus Variant and Disasters Strike
Barrons – You Can Bank on Bank Stocks For Steady Dividends. Here Are 4 With Yields Above 3%
 



Economic Calendar

Monday: New home sales (Jun)
Tuesday: Durable goods orders (Jun), Home price index (May), CCI (Jul), Housing vacancies (Q2)
Wednesday: Advanced trade in goods (Jun), Fed Open Market Committee announcement, Fed Chair Powell press conference
Thursday: Gross domestic product, first estimate (Q2), Pending home sales index (Jun)
Friday: Employment cost index (Q2), Personal income (Jun), consumer spending (Jun), Core inflation (Jun), Chicago PMI (Jul), UMich Consumer sentiment index (Jul)

US Futures
S&P 4391 -0.27%
DOW 34,809 -0.41%
NASDAQ 15,081.75 -0.11%

World Markets
FTSE 7005.9
-0.13%
NIKKEI 27,833.29 +1.04%
Hang Seng 26,192.32
-4.13%
Treasuries
3 Mo 0.056%
10YR 1.248%
30 YR 1.886%

Currencies
Euro $1.1799
Pound $1.3796
Yen $110.296

Commodities
Gold 1808.30
+0.36%
WTI Crude 71.57 -0.69%
Silver 25.46
+0.90%


Upcoming Earnings Calls

Monday - LMT,TSLA
Tuesday -CNC, UPS, MMM, SIRI, SHW, GE, SWK, PII, WM, BSX, JBLU, FISV, RTX, IVZ, LW, AAPL, SBUX, AMD, GOOGL, TDOC, V, MSFT, MDLZ, JNPR, CAKE
Wednesday - HUM, CME, PFE, MCD, SIX, BA, MCO, GD, TDY, BMY, FB,F, XLNX, PYPL, NOW, LRCX, ALGN
Thursday - MRK, ICE, TROW, CMCSA, SAVE, VLO,
Friday - ABBV, VFC, XOM, CHD, DNMR, PG, CHTR, CVX, CAT, CVX,CL



Client Focused Trading® for large institutions, pensions, hedge funds, wealthy families, and private equity for over 30 years.

Glen Eagle Wealth, LLC is a member FINRA and SIPC
This desk commentary is for informational purposes only


Ansie Monaghan
Carol Ann Fernandez

Glen EagleWealth, LLC
4422C Route 27
PO Box 399
Kingston, NJ 08528
(609) 631-8231

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