The latest Bank of America investors survey reveals that contrary to optimism surrounding earnings season, investors are now the most bearish on corporate profitability and economic growth in over two years.
"...every time someone like Merkel or Rosenstein makes a move to win a short-term political battle, they ensure their demise later. It lays bare their real agenda, which is saving themselves and supporting policies the people have rejected..."
While American companies have made much more noise about the destabilizing impact of President Trump's trade war, currency-related factors have been cited much more frequently as having had a negative impact on company performance...
"It’s been a fairly sluggish and unexciting start to the week for markets. Whether things get more interesting or not probably depends on what Fed Chair Jerome Powell has to say."
"The British are finding out in their Brexit voyage that escaping from the 'might' of an EU dominated by Germany is perilous. At this point there are many grounds for despairing about the ability of their political leaders to achieve a meaningful exit..."
"It is absolutely unreal how the world pays so much respect to mediocrity or even incompetence when it comes to running the financial system...When the global debt and asset bubble pops, the world will find out that there was nothing inside. "
" The reality is the majority of individuals are ill-prepared for an impact event to occur. This is particularly the case in late-stage bull market cycles where complacency runs high."
Tech was the biggest contributor to the S&P 500's first half gain, contributing 2.6% or 98% of the S&P 500's 2.6% total return; excluding FAANG, S&P 500 index returns would have been -0.7%.
"Having assiduously read the news and analysis from outlets of record on three different continents, you can imagine my surprise and chagrin in seeing my screens chock-full of asset prices that are either unchanged or 'happier' than when I left."
This week's calendar features a steady stream of potentially interesting events culminating with Fed Chair Powell's semi annual Monetary Policy Report, as well as economic updates from the US, Europe and China, and several key political events.
Solid, but not impressive, operating results coupled with a big cut in expenses and a drop in the tax rate allowed Bank of America to beat on the top and bottom line.
U.S. futures are fractionally higher, following European shares in the green as Asian equities retreated ahead of today's historic Trump-Putin summit and the first big week of earnings for US corporations.
