The S&P 500 was fueled by earnings, finishing up 2.6% for the week and closing at 3961 on Friday. Over 20% of S&P 500 companies have reported earnings, and 70% of those have beat expectations. One of those beating expectations was Tesla, one of the Top Five market cap stocks in the S&P 500. Tesla closed at $736 on Tuesday, reported earnings which beat expectations after that close, and then finished the week at $816. This led to the S&P 500 briefly crossing the 4000 level after Fridays open. On the other hand, when a company misses earnings expectations, the consequences can reverberate across the entire market. Case in point. An earnings miss from Snap after the bell on Thursday sent shares tumbling about 39.1% on Friday, with Snap closing at $9.96. To put this in perspective, Snaps 52 week high was $83.34 in last September (ouch!!). Staying on the earnings theme, Apple reports earnings after the close on Thursday. As the S&P 500s largest component (7.1%), Apples report will surely drive Fridays market action. And lets not forget the Fed meets and will announce its interest rate decision on Wednesday. For TSP TIPS, we sent out a mid-week buy alert due to a two-bar reversal. For more info on this strategy, go to You Tube, search on TSP TIPS; Trending Investment Portfolio Strategies, and go to the 8:10 minute point. As such, we are not recommending any allocation changes as we enter the last week of July. However, we still have one July reallocation available. Dependent upon the markets reaction to the Fed announcement and Apples earnings, stand by for a Thursday Mid-week alert for execution on Friday, the last trading day of July.
The S&P 500 was fueled by earnings, finishing up 2.6% for the week and closing at 3961 on Friday. Over 20% of S&P 500 companies have reported earnings, and 70% of those have beat expectations. One of those beating expectations was Tesla, one of the Top Five market cap stocks in the S&P 500. Tesla closed at $736 on Tuesday, reported earnings which beat expectations after that close, and then finished the week at $816. This led to the S&P 500 briefly crossing the 4000 level after Fridays open. On the other hand, when a company misses earnings expectations, the consequences can reverberate across the entire market. Case in point. An earnings miss from Snap after the bell on Thursday sent shares tumbling about 39.1% on Friday, with Snap closing at $9.96. To put this in perspective, Snaps 52 week high was $83.34 in last September (ouch!!). Staying on the earnings theme, Apple reports earnings after the close on Thursday. As the S&P 500s largest component (7.1%), Apples report will surely drive Fridays market action. And lets not forget the Fed meets and will announce its interest rate decision on Wednesday. For TSP TIPS, we sent out a mid-week buy alert due to a two-bar reversal. For more info on this strategy, go to You Tube, search on TSP TIPS; Trending Investment Portfolio Strategies, and go to the 8:10 minute point. As such, we are not recommending any allocation changes as we enter the last week of July. However, we still have one July reallocation available. Dependent upon the markets reaction to the Fed announcement and Apples earnings, stand by for a Thursday Mid-week alert for execution on Friday, the last trading day of July.