It’s amazing how the market’s sentiment can change on a dime. This is certainly the case with this quarter’s earnings season. Last week, traders became worried as many of the reported earnings announcements weren’t up to snuff. Poor guidance figures, less-than-expected results and an overall dour mood dampened much of the enthusiasm for the bull market. This is in contrast with the current week. While guidance still remains cautious, many of the firm’s reporting this week have showed that the trade war between the U.S. and China hasn’t dampened profits as much as initially feared. This has helped to keep markets moving higher through much of the week.
Also, a variety of metrics continued to paint a bullish, yet not too bullish, picture. This gave reason to believe that the Fed will cut rates at its next meeting at the end of the month. And the drum beat of an even bigger cut has gotten louder.
Also helping was some thawing on the trade war. News broke that talks are scheduled to resume next week between the two Super Powers. While investors were cautious about not getting their hopes up, it still helped move stocks in a positive direction.
All in all, the positive earnings news and data managed to send shares higher over the week.
Be sure to check out our previous Wrap here, when the market sank on poor earnings.
