By: Tom Gentile
on July 28th, 2021
We are in the middle of the week for big tech earnings announcements.
Thus far I have seen that a quarter of the S&P 500 has now reported second-quarter earnings. EPS is expected to grow 76% year over year for the period; this, according to Refinitiv. This would be the best growth since 2009.
What does this say for the future of the markets? It says the reopening trade for the economy may stay intact/ do well.
I wouldn’t be too gung ho about going full on bullish and pile in or pile in more than you have as I wouldn’t be surprised to see a pullback to a degree based on a simple ‘Sell the news’ type situation post earnings.
The Fed’s decision on interest rates was to leave rates unchanged – no surprise there, really.
They are stating that they will continue to assess things going forward to help them with future decisions – I should sure hope so!
Where there was talk about how divided the Fed is, this decision today was reported as unanimous.
It seems no news is ok news as the markets didn’t really move that much off the lows they were trading at prior to the announcement. Maybe intraday but not at the close.
C1P Chief 1-Percenter
Four Corners of the Market