Market selloff ahead no matter what the Fed does?
Altium Wealth Portfolio Manager Michael Lee on the state of the markets and the outlook for Federal Reserve policy.
The top three U.S. stock exchanges are expected to open with marginal increases on Monday ahead of a jam-packed week of second-quarter earnings and amid continued investor optimism that the Federal Reserve is poised to lower interest rates, though potentially less than previously thought.
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This week, ten companies listed on the Dow Jones Industrial Average, including Boeing, Coca-Cola and Caterpillar, report financial results through June. Also on the earnings docket is Facebook, Google-parent company Alphabet and Tesla.
So far this reporting cycle, 79 percent of S&P 500 companies exceed earnings expectations, according to FactSet.
Meanwhile, hopes are still high that the Federal Reserve will cut interest rates at its upcoming July meeting.
Several officials at the central bank have suggested as much over the past few weeks, including Chairman Jerome Powell, but more cautious wording is suggesting to investors and other experts that the Fed may lower rates by a quarter of a percentage point, less than the half-basis point some were predicting.
The CME Group’s FedWatch tool, a closely watched indicator of the central bank’s sentiment, lists the possibility for a 25-point cut at 75.5 percent.
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On Monday, China launched a Nasdaq-inspired technology stock exchange. Known as the STAR Market, prices of the 25 companies listed on the exchange doubled in price after the ceremonial opening attended by government and financial officials.
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