By Bill Hornbarger, Chief Investment Officer
Three Things to Watch
Three Things to Watch- With the lack of data releases the focus will be on earnings (again) this week. Hundreds of companies are scheduled to report, with some of the higher-profile names including Qualcomm, Palantir, Uber, Pfizer and McDonald’s. To date, 318 of the S&P 500 members have reported, with 83% reporting positive earnings surprises.
- Global trade and the government shutdown remain on the front burner, and headlines could have an outsized impact due to the lack of information on the economy.
- Twelve separate Federal Reserve (Fed) speakers will be on the tape this week after the Fed cut rates 25 basis points at its most recent meeting. Fed Chairman Powell was relatively noncommittal on a December rate cut in his press conference, and futures are pricing the odds of another cut at slightly less than 70%.
Three Things to Know
- College basketball starts on Nov. 3 this year. The national champion will be crowned on April 6 in Indianapolis. The last time that Loyola University Chicago played a basketball season without Sister Jean Dolores Schmidt among us was 1917. The men’s basketball team’s chaplain and beloved icon died last month at the age of 106. (Source: NCAA.com)
- Microsoft revenues have increased from $41 billion in 2005 to $88 billion in 2015 to an estimated $304 billion in 2025. (Source: Charlie Bilello)
- Magnificent Seven stocks have posted seven consecutive monthly gains, up 49%, the second-longest streak over the last 10 years. This matches their 2023 run of seven months and trails only the 11-month rally from 2016–2017. As a result, the Magnificent Seven’s market cap is now above $20 trillion for the first time in history. These stocks now reflect a record 35% of the S&P 500’s total market cap. Big Tech stocks are more powerful than ever. (Source: The Kobeissi Letter)
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.