Last Week:

  • U.S. equities finished negative for the week: The Dow Jones Industrial Average (DJIA) closed 234 points lower, or fell 1.06%, to 21,858. The Standard & Poor’s 500 (S&P 500) index lost 36 points, or fell 1.43%, to 2,441. The Nasdaq closed last week 1.50% lower at 6,257. The relatively large one-week declines recorded by all three indexes were attributed to the heightened geopolitical tensions surrounding North Korea.
  • S&P 500 Earnings Update: According to FactSet, 91% of the companies in the S&P 500 index have reported actual results for the second quarter of 2017 with 73% reporting earnings above analyst expectations. The blended earnings growth rate for companies that have reported so far is 10.2%, compared to the same period last year, showing a strong resurgence of corporate earnings growth. According to the FactSet analysis, S&P 500 companies with more global exposure (<50% of sales in U.S.) reported higher earnings growth in the second quarter compared to companies with less global exposure (>50% of sales in U.S.).

S&P 500 Earnings & Revenue Growth: 2Q 2017

Haverford Trust Bar Graph - Displayal of Earnings Growth and Revenue Growth between the S&P 500 Companies > 50% of Sales in U.S. , All S&P 500 Companies, and S&P 500 Companies < 50% of Sales in U.S.
Source: FactSet Research Systems

Look Ahead:

  • Second quarter earnings season is coming to an end with results expected from Sysco, TJX Companies, Cisco Systems, Target, Estee Lauder, Foot Locker and Deere among others.
  • Key reports/items for the upcoming week include Euro-zone Industrial production (Jun), U.S. retail sales and Import Prices for July, The Federal Open Market Committee meeting minutes (Jul), and The University of Michigan Consumer Sentiment data (Aug-pre), among others.