This week, the markets will likely be in a tug-of-war battle between tariff news and second quarter earnings announcements. Market analysts are predicting more strong corporate earnings announcements with companies like Wells Fargo, JPMorgan Chase & Co, Citigroup, and Delta Airlines set to publish their earnings.
How the markets react to the mix of tariff news and earnings will set the tone for the next trading sessions to come.
“Despite trade headlines, S&P 500 companies should deliver robust earnings on above-trend revenue growth and sharply higher margins,” said Dubravko Lakos-Bujas, head of U.S. equity strategy at J.P. Morgan. “While weaker overseas growth, stronger USD, and trade risks warrant some caution, consensus is likely too conservative considering rising disposable income (i.e., tax savings and expanding labor market) and lower household expenses (e.g., declining cost of goods/services including utilities).”
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