Friends
Despite a slight earnings miss by Amazon, there were many other good earnings releases, not the least of which was Alphabet’s, which helped push market averages to new all-time highs. Today’s GDP number, which showed 2.1% growth in the 2nd quarter, was actually a little better than expected, but not so hot as to deter the Fed from cutting rates next week. That expectation of a rate cut along with a reasonably good earnings season is fueling the market advance.
For the day, the Dow Jones Industrial Average was up 51 points to close at 27,192. The S&P 500 was up 22 points to finish the day at 3,025. Gold was up $2 to trade at $1,417 per ounce, while oil was up $.18 to trade at $56.20 per barrel WTI.
It was a very busy week for corporate earnings, and with nearly half of the S&P having reported, EPS growth is actually showing a positive number, which is definitely better than expected. The earnings deluge will continue next week, and of course, we will have the FOMC meeting on Tuesday and Wednesday. With today’s market action, it appears that market participants are getting more comfortable with the corporate earnings picture, and most certainly are expecting an interest rate cut next week. It should be another fun week ahead. We’ll keep an eye on it all for you.
Have a great weekend everyone.
