Week in Review: Stocks Mixed as Earnings Season Begins… 07/21/2017


The broader indices ended mixed while small cap stocks tried to breakout last week as earnings season officially began. Just to recap the first full week of earnings, the data is mixed.  So far, nearly all of the big banks reported earnings, and nearly all of them, except for Morgan Stanley, fell on the day they reported.  That weighed on the Dow and S&P 500 as investors digested the data.  Elsewhere, Netflix jumped to a fresh record high after reporting a big jump in subscribers. Meanwhile, Qualcomm, Microsoft, and eBay all fell after reporting earnings.  The good news for the bulls is that the market remains exceptionally strong and the major indices are trading just below their record highs.


A Closer Look at What Happened Last Week…

Mon-Wed Action:

Stocks rallied on Monday helping the Nasdaq post a 7-day win streak as earnings season continues in droves.  So far, analysts are expecting Q2 earnings to grow by +6.2%.  

Stocks were mixed on Tuesday as the Nasdaq rallied while the Dow fell.  Bank of America and Goldman Sachs both fell after reporting earnings while shares of Netflix soared after reporting a big jump in subscribers.

On Wednesday, the major indices hit new highs on the back of the latest round of earnings. Elsewhere, Housing starts vaulted +8.3% last month, hitting their highest level since February 2017. Separately, Mortgage applications, rose +6.3%.

Thur & Fri Action:

On Thursday, stocks were quiet as investors digested the latest meeting from the European Central Bank (ECB) and waited for the latest round of earnings to be released.  Separately, Bloomberg reported that special counsel Robert Mueller is looking into the business dealings of President Donald Trump, Jared Kushner and other associates. This comes a day after Trump warned Muller against it during an interview with the New York Times on Wednesday.

Stocks fell on Friday as investors digested the latest round of earnings data. General Electric (GE), Microsoft (MSFT), eBay (EBAY), and a few other well-known stocks fell hard after reporting earnings.


Market Outlook: All Eyes On Earnings

The bulls showed up and defended important support in June which is very bullish for the market. As we have said several times over the past month, as long as support holds, the bulls remain in control of this market. As always, keep your losses small and never argue with the tape.


Here are more articles you may like

Claim Your Free Guide Today

Give us your email and we will give you the tools to change your life. 


Learn about Early Entry Points & much more...

© ChartYourTrade | Contact us: website@chartyourtrade.com

Disclaimer: All communication from ChartYourTrade is general in nature and for educational and general informational purposes only. Under no circumstance should it be considered personalized investment advice. All our work is general in nature and not specific to any one person. All the information on this site and/or that originates from us, or any of our partners or affiliates, is for educational and informational purposes only and is NOT a recommendation to buy or sell anything. To avoid any conflicts of interest, we do not have a working relationship with any of the companies mentioned in our work. Furthermore, we may have a long, short, or no position in any, or all, of the names that appear in our work and they may change at any time without notice. Investing and trading in capital markets or using margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. Before you decide to invest or trade in capital markets you should carefully consider your investment objectives, level of experience, and risk appetite, among other factors. The possibility exists that you could sustain a loss of some, all, or more of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with capital markets, investing/trading, and seek specific investment advice from an independent financial advisor and other professionals. Remember all the information we provide is for educational and general informational purposes only and is subject to change without notice.

Charts and Data are courtesy of MarketSmith Incorporated. Join MarketSmith here.

Terms of Service