8-18-26-SPX

The trend is up and any pullback should be considered buyable, in our opinion. The S&P 500 is trading around 7,700 and still looks like it could be headed to our target of 8,000 by year-end.

Earnings have been solid. Of the 454 companies that have reported so far (91% of the S&P 500):

  • Overall, 87% are beating estimates, and those that “beat” are beating by a median of 7%.
  • Of the 13% missing, those are missing by a median of -2%.
  • On the top line, overall results are beating estimates by a median of 4% and missing by a median of -3%, and 76% of those reporting are beating estimates.
8-18-26-LPG

Dorian LPG Ltd. (LPG) broke out of a cup-and-handle pattern and looks like it could be moving higher. Also take a look at FedEx (FDX). We think a move above $344.00 would confirm a new breakout has begun.

8-18-26-FDX

West Texas Intermediate Crude futures were up nearly 3% in recent trading, rising to around $84.80 per barrel. Oil rose after Trump told Fox News that the U.S. would “bomb the s***” out of Oman if the country “gets in the way” of U.S.-Iran negotiations with their 60-day ceasefire expiring Monday.

Brent crude, the international energy benchmark, posted a similar gain to WTI and was up to $91.10 per barrel. Murban Crude jumped nearly 7% to trade at $95.45 per barrel. The latter is produced in Abu Dhabi and is a benchmark for Middle Eastern exports heading to Asian markets.

The 30-year Treasury yield climbed 4 basis points to 5.21% and the 10-year Treasury yield rose 3 basis point to 4.72%. Bitcoin was up nearly 2% to around $64,300 per token.

The minutes from the Federal Reserve’s policy meeting are set for release Wednesday. At that meeting, the Fed held its benchmark interest rate steady, but multiple dissents in favor of a rate hike support market expectations for a tightening of monetary policy in September.

Three members of the Fed policy-setting panel, the Federal Open Market Committee, or FOMC, dissented, preferring a rate hike. That made the vote 9-3 in favor of steady policy. That level of dissent is uncommon.