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In this market almost everything is up. How long can it be?



In June, the Federal Reserve chairman Jerome Powell explained that the central bank would do what was necessary to ensure continued expansion of the US economy. It has trumped concern over a trade war and slows economic growth.
US stock markets have made record increases in hopes that the Fed will cut interest rates later this month. A reduction would give companies access to cheaper borrowing. The S & P 500 is already up by almost 20% this year, the best start since 1998.

The outlook for central bank stimulus has also pushed up bond prices, which is in contrast to the return. The United States paid less than 2% of its 10-year government bonds at a time.

The hopes for lower interest rates also weighed on US dollars, as the currencies tend to deteriorate as local interest rates decline. This in turn contributed to gold prices which have climbed about 1
1% this year. The dollar still holds gains for 2019.
The oil price has risen from last year's steep decline and climbed over 21% this year, according to Refinitiv. The movement was partly caused by increased geopolitical tensions, which threatened oil supplies.

Nevertheless, there are many potential issues that can track the market momentum.

First, the US debt ceiling is again in focus after the Ministry of Finance said the government could run out of cash in September.

On the Fed front, investors are concerned about the pace of reductions this year and whether or not you will really give the desired increase in economic growth.

Economists in the capital economy predict that US economic growth will fall sharply in the second half of 2019, which led the Fed to cut interest rates by a total of three quarters of one percentage point. However, can take months for monetary policy measures to bring to the economy.

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Another concern is that the US economy is becoming less resilient to the trade war, as the manufacturing sector carries the financial damage, according to James Knightley, head of international finance at ING.

Although the United States and China agreed on a tariff last month, President Donald Trump has warned that he could be raised on imports from China. Uncertainty about trading weighs on corporate investments, and it will not change unless saliva is solved.

Meanwhile, China's economic growth has fallen to its lowest level in almost three decades. State stimulus will help support the huge economy, but investors can be eliminated by further weakness.

2. Pound watch: The United Kingdom receives a new prime minister this week, and the stakes could not be higher.

The Conservative Party's selection of Theresa Mays successor could set the stage for Brexit and pound a new wave of volatility. The currency dropped to a two-year low below $ 1.24 last week.

Frontrunner Boris Johnson has said he would be willing to force Brexit on October 31, no later than the last deadline for the UK to leave the European Union if he cannot negotiate a new resale deal with EU officials.

Leaving the European Union unanimously would subdue the UK in recession, according to a report by the UK government's budget guard. Britain's stock markets would fall 5%, while the pound would fall 10%. GDP would shrink by 2% by the end of 2020.

Johnson or his opponent Jeremy Hunt will be appointed leader of the party on Tuesday.

3. Boeing Revenue: Boeing ( BA ) strengthens a catastrophic performance report.
The aircraft manufacturer has been hit hard by the foundation of its 737 Max rays. Southwest ( LUV ) American Airlines ( AAL ) and United Airlines UAL ) has all recently extended cancellations of 737 Max flights for several months.

There will probably be results for Boeing, who will report the result for the second quarter before the opening hour on Wednesday. Analysts forecast a sales rate of more than 16% from a year ago and nearly 50% in earnings per share.

The company said last week that it will record nearly $ 5 billion after tax in the second quarter, citing potential concessions to customers for disturbances and delivery delays.

The question is how much worse it will be. The company ceased its performance management in April after reporting a decrease of 21% in profit during the first quarter. Boeing also plans to buy back more of his own stock in standby mode until 737 Max is back in the air.

Boeing's best rival, Europe's Airbus, has delivered 150 more jets to the airlines than the US plan maker during the first half. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ] Amazon ( AMZN ) a week after they were grilled on Capitol Hill.

Facebook reports results for the second quarter on Wednesday. Analysts expect quarterly sales growth to reach 23%. But important focus will be on what Facebook has to say about growing reviews from regulatory authorities.

The company has been under the microscope since it announced the launch of Libra, a cryptocurrency. The Federal Trade Commission has also reported approving a $ 5 billion settlement with the company in an investigation of its data privacy practices.

Google Parent Alphabet comes with earnings on Thursday. Analysts are projecting quarterly sales of $ 38.2 billion. This would be an increase of 17% compared with the previous year, a growth rate at the same level as in the first quarter but still lower than the growth in 2018, when revenues increased by over 20% in the quarter.

Google shares are missing out on a rally enjoyed by the other FAANG shares. The company's shares increase almost 10% this year.

Meanwhile, Facebook stock has jumped over 50%. The shares in Microsoft and Amazon have increased more than 30%.

Amazon also reports results Thursday. Investors will be interested in whether the company's push-free delivery for one day has raised sales. They will also pay attention to the results of their highest profit sharing: Amazon Web Services.

5. Next week:

Monday Whirlpool ( WHR ) result
Tuesday – Europe Consumer Confidence; US Existing Home Sales; Coca-Cola ( KO ) Harley-Davidson ( HOG ) Kimberly-Clark ( KMB ) Lockheed Martin ( LMT ) Chipotle ( CMG Snap ( SNAP ] UBS ( UBS ) Visa ( V ) results
Wednesday – German manufacturing data; new home sales; US raw materials Deutsche Bank DB ) AT & T ( T ) Boeing ] Caterpillar ( CAT ) UPS ( FB ) Ford ( F ) PayPal PYPL ) Tesla [19659023] ( TSLA ) result
Thursday – European Central Bank's fee decision; US durable goods; 3M ( MMM ) American Airlines ( AAL ) Anheuser-Busch InBev BUD ) Comcast ( CCZ ) Hershey ( HSY ) Nokia ( NOK ) [19659026] Amazon ( AMZN ) Alphabet ] ] ) Intel ( INTC ) Mattel ( MAT Starbucks ( SBUX ) Friday – United States BN2 BNP; ] McDonalds
( MCD ) and Twitter ( TWTR ) result

– Julia Horowitz, Paul R La Monica and Clare Duffy contributed to this report.


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