Looking Ahead to August
So far, 86% of companies are reporting earnings better than expectations. Unfortunately, while some companies beat expectations, those companies that miss are being punished with lower stock prices. And, that does prevent the market from really going forward.
While the trade disputes continue to make the news, we do anticipate that they will be settled fairly quickly. Other challenges to companies this year include increased costs due to higher wages, higher energy prices and potentially higher costs due to possible tariffs.