Monday – July 22, 2019

By July 22, 2019 Dark and Early

Market opens higher to begin the new week, and what a week it will be. Earnings Season hits full stride with roughly 1/3 of the S&P companies reporting numbers for Q2. It is a star-studded list with the likes of Amazon, Alphabet, Facebook, AT&T, Starbucks, Visa and Coke. Expectations have grown. Stock prices have soared. We shall see if the numbers are strong enough to keep a bid under this Market. China extended an offer to buy more American agriculture, which seems to be reigniting hopes of a deal back on the table. Team Mnuchin and Lighthizer may be headed to Beijing after all. Silicon Valley leaders head to Washington to discuss Huawei and the implications for blockage and allowing access. Tensions with Iran continue to stay elevated. The Iranians seized a British oil tanker on Friday in the Straits of Hormuz. It’s also being reported that Iran captured what they are calling CIA spies. The United Kingdom will have a new Prime Minister this week. It is expected to be Boris Johnson and the possibility of a hard Brexit seems to be increasing. A deal to raise the debt ceiling could be near. The Fed is in a quiet period ahead of the July 30-31 meeting, which is still a big focus for the Market. The American President is not being quiet on the subject of interest rates. He is adamant is wanting them lower. They’re lower this morning, with the 10-Year Treasury yield at 2.03%. Gold is higher, as is the Dollar. Oil is too, on the back of the Iranian tensions, but not by that much. This is going to be an important week in 2019.

Have a great morning,

Mike Frazier