Benefit From a Deluge of Reports
The main focus in the week ahead will be earnings reports, with more than 800 companies coming out with quarterly results, including 183 S&P 500 members and 13 Dow stocks. FANG names— Facebook, Amazon and Alphabet — are among the S&P companies reporting, as are Exxon Mobil, Caterpillar, United Technologies, McDonald's, and Boeing.
The earnings season was expected to be strong, and up until last Friday, July 21, there were results from 97 S&P 500 members already out, which have provided a positive and reassuring view of corporate earnings; this is expected to continue with further strengthening through the remainder of this earnings season.
There have been plenty of positives so far from the early start of the earnings season, and members of Stock Options Made Easy have been benefiting from this situation; here are some of these positive aspects:-
1. Plenty of positive surprises; particularly on the earnings front.
2. Earnings and revenue growth
pre-season expectations have been exceeded.
3. Most sectors are participating in the growth – not limited to one or two sectors.
4. Negative estimate revisions are similar to other comparable periods.
This improvement in quarterly performance has been influenced by an economic improvement, jobs growth and oil prices starting to rise.
Options Trades to Consider Based on Expected Earnings Reports:................
A Bounce for Halliburton Shares!
Making A Move – Earnings Due Monday, July 24, 2017
U.S. oilfield service companies' second-quarter earnings should easily top last year's depressed results. This improvement in earnings is mainly due to expanding shale production driving revenues; particularly for suppliers of land drilling rigs, tubing and hydraulic fracturing services in North America.
And Halliburton Company (NYSE:HAL), a provider of technical products and services to drillers of oil and gas wells, is one of the beneficiaries of this situation; as it is expected to swing to profit in the quarter from year-earlier losses.
The Stock Market Keeps-On Keeping-On
Nasdaq, VIX Break Records and the COMP’s Longest Winning Streak
Wednesday saw the S&P 500 INDEX (SPX) mark the 4th straight close above 2450, which verifies that the breakout is truly underway. Both the SPX and Nasdaq Composite (COMP) hit new record highs yesterday, as the financial sector rallied around Morgan Stanley's earnings and Apple stock (see article) heads toward its longest winning streak in almost three years.
Dow Jones Industrial Average Gains Despite IBM Drop
The Dow Jones Industrial Average (DJIA) finished at a record closing high, despite a sharp loss from IBM, which reported subpar earnings results (see article).
Although risk is escalating, the CBOE Volatility Index (VIX) -- or the stock market's "fear gauge" -- closed below 10 for the fifth straight session, a new record.
Best of Trading,
Director of Stock Options Made Easy