By Bill Hornbarger, Chief Investment Officer
Three Things to Watch
- Second-quarter earnings season kicks off in earnest this week with many of the large financial institutions reporting on Tuesday and other high-profile names sprinkled throughout the week. Wells Fargo, JPMorgan, Blackrock, BNY Mellon and State Street all report on Tuesday, with Netflix, American Express, Johnson & Johnson and others hitting the tapes in the week ahead. After a strong first quarter, earnings are expected to show mid-single digit increases in the current quarter.
- On the data front, retail sales and the Consumer Price Index (CPI) will be the main focus. CPI is expected to re-accelerate for the first time since January, with core CPI up 2.9% on a year-over-year basis. Retail sales are expected to show a slight increase after two consecutive monthly declines.
- And finally, trade remains in the news with President Trump targeting Mexico and the European Union with increased tariffs over the weekend.
Three Things to Know
- Luftwaffe pilot Erich Hartmann was the most prolific flying ace ever, shooting down 352 Allied planes during World War II. He had to crash land 16 times due to equipment failure or shrapnel from his own kills, but never once because of enemy fire. (Source: Fascinating)
- The median U.S. condo sale price declined -2.2% year over year in May to $354,100, marking the second-largest decrease since at least 2012. The only time condo prices dropped by a larger amount was in April 2023, by -2.9%. Meanwhile, condo sales plunged -11.9% year over year, the most since June 2024, and more than three times the decline in sales of single-family homes, which fell by -3.7%. Overall, combined sales of condos and single-family homes fell to their lowest level for any May since 2020. This comes as there are ~80% more condo sellers than buyers in the market, according to Redfin. (Source: The Kobeissi Letter)
- History shows that the S&P 500 has always been higher in the year following a three-month rally of 25%, notching additional gains of 22%, on average. (Source: The Motley Fool)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.