Subject: Decoding the Earnings Report

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Rover's Weekly Market Brief
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Indices

DJIA: 21,830.20 (+1.16%)

NASDAQ: 6,374.68 (-0.20%)

S&P 500: 2,472.10 (-0.02%)

Commodities

Gold: 1,275.70 (+1.66%)

Copper: 287.75 (+5.69%)

Crude Oil: 49.67 (+8.52%)

Economy

In a unanimous vote, the Federal Open Market Committee (FOMC) decided to maintain interest rates at 1.0 - 1.25% and to maintain its policy of reinvesting its $4.5 trillion investment balance, although they reiterated their intention to begin reducing the balance “relatively soon”. The Committee noted that while job gains have been solid, and both household and business fixed investment spending have increased, yearly inflation has declined and remains below the 2% target.

 

Exports increased in June vs May by +$1.8 billion and imports decreased by -$0.7 billion, reducing the trade deficit to $63.9 billion. Increases in exports were notable for “other” goods (+5.5%), foods (+5.0%), and automotives (+2.8%), with import increases for “other” goods (+5.6%) and automobiles (+3.4%). Year over year, exports increased +6.8%, with significant increases for industrial supplies (+14.8%), automobiles (+9.9%), and food (+9.1%); yearly imports increased +4.5%, with significant increases for “other” goods (+12.6%), food (+8.1%), and industrial supplies (+7.7%). Industrial supplies includes petroleum and petroleum products, and “other” goods fall into the Census Bureau’s categorization for military-type goods.

 

The advance estimate for Q2 GDP was +2.6%, meeting consensus estimates and more than doubling Q1's downward revised +1.2% GDP. Q2 GDP was boosted by increases in exports (+4.1%) vs imports (+2.1%), and a +2.8% increase in personal consumption expenditure (PCE), with lesser contributions from decreasing inventories, a small increase in government spending, and slowing increases in fixed business investment (+2.2% Q2 vs. +8.1% Q1). The increase in consumer spending included contributions from an increase in disposable personal income (+0.8%), a drop in the personal saving rate (by -0.1% to 3.8%), and an increase in the number of employed.

Upcoming Events:

Tuesday August 1 — Personal Income and Outlays

Friday August 4 — Employment Situation

Earnings Calendar

Mon
HSBC
SNY
Tues
AAPL
PFE
Wed
RIO
TWX
Thurs
TM
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Fri
BRK.A
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Decoding the Earnings Report

 

During earnings season, it’s important to be able to read an earnings report with clarity. Sometimes the market reacts in a counterintuitive way to quarterly earnings reports. What's the reason for this? And how can a long-term investor see past hype or hysteria to make independent judgments about an earnings report? In this article, we answer these questions.

Read the Article
 
 

Go for Growth

 

What are the top growth stocks in the market right now? This week, our Ideas screeners take that question on. Each screener puts a slightly different spin on the growth search in order to turn up different picks. The usual suspects like FB, GOOGL, and NTES often make the cut, alongside some fresh ideas as well. See if anything strikes a chord.

You can download any of our featured screeners directly into your account by clicking the “Add to Account” link.

Go to Ideas

3 Ways to Screen for a GARP Stock

 

In this article we outline 3 approaches to screening for a great growth-at-a-reasonable-price (GARP) stock. One approach through our basic screener, and two demonstrating our Premium screeners. Read to learn how to discover great new finds!

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The Stock Rover Team

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