US Stock Markets Ended July 27, 2018

Bob Carey
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US Stock Markets Ended July 27, 2018

Posted Under: Weekly Market Commentary

Equities whipsawed last week as trade risks and earnings permeated headlines. All told the S&P 500 index returned 0.61% last week, while mid and small-caps were negative. On Wednesday, the S&P 500 closed above 2,840 for the 3rd time in 2018, only to drop on poor earnings announcements to close the week. Facebook Inc. tumbled as much as 20% and lost over $120b worth of market cap. The social media giant announced that revenue growth rates are likely to decelerate in 2H and be below 10%, well below analyst expectations. Nielsen Holdings PLC, was the poorest performing member of the S&P 500, falling over 25% last week after announcing disappointing quarterly revenue and earnings results, and cutting their year-end guidance. Twitter Inc. also fell over 20%, despite their revenue and earrings surprising on the upside, the stock price couldn't recover after announcing a decline in monthly users. Not all earnings announcements were negative, Corning Inc. soared 15% last week after announcing revenue and earnings beat analyst expectations and raising their full year revenue guidance. Zimmer Biomet Holdings Inc. was up over 13% last week after they announced strong 2Q performance as the medical device company is improving their supply chain and manufacturing capacity. Turning to trade news, toward the end of Wednesday President Donald Trump and European Commission President Jean-Claude Juncker announced an agreement on a framework for future trade that included provisions for the European Union to purchase additional liquified natural gas, soybeans and working towards lowering overall tariffs between two of the world's largest trading partners. This was especially important considering that China has, in response to U.S. tariffs, imposed their own tariffs on many U.S. agricultural products. Looking ahead to next week, earnings season continues as 145 companies in the S&P 500 are expected to report, including: Apple Inc., Berkshire Hathaway Inc., Pfizer Inc., Caterpillar Inc., The Kraft Heinz Co. and The Allstate Corp

Posted on Tuesday, July 31, 2018 @ 7:12 AM • Post Link	Share:
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These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.

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