Corporate Earnings Beat Expectations
Explore Napa Valley California with W._S._J.. Magazine and into Garay Join W._S._J.. Magazine on intimate winery visits with globally acclaimed winemakers and celebrated shafts enjoy stunning views Michelin starred restaurants private sellers and much more book this exclusive trip at indoor dot com slash W._S._J.. Magazine or call six four six seven eight zero eight three eight three a fatal shooting. Eh Food Festival in California leaves three people dead floss wear in the thick of earning season out of the entire five hundred nearly a third of the companies that have reported so far have beaten expectations and the U._S.. In China up prepare for another round of Trade Talks U._S. wants China to commit to real fundamental changes in the structure of its economy this what's news from the Wall Street Journal. I'm Marie for totally before we get to earnings and the Fed here are some top stories we're following a fatal shooting at the Gilroy garlic festival in California left three people dead and more than a dozen injured according running to the police one suspect was also killed by police Gilroy police chief Scott Smith He. We have one suspect. We know that is down. We have some witnesses reporting that there may have been a second suspect but we don't know oh if that suspect was engaged in any shooting or whether they may have been some sort of a support role with the person that we have accounted for the shooting broke out around five forty P._M.. Local time as the three day festival was winding winding down for the latest on this developing story police check our website W._S._J.. Dot Com National Intelligence Director Dan Coats is stepping down from his post next month. President trump made the announcement on twitter saying he will nominate Texas Representative John Ratcliffe for the job coats who has served as intelligence director since March of two thousand seventeen as longtime critic of Russia right cliff drew the support of trump allies and conservative media outlets for his questioning of former special counsel Robert Mueller clashes between police and protesters took place in Hong Kong over the weekend in what's been a summer of protests against Beijing's encroachment police used tear-gas gases. They fought to contain thousands of protesters Hong Kong. Police said they made at least forty nine arrests on Sunday. Protests began in June and the last few weeks have marched an increase in the intensity of confrontations. They began over controversial extradition Asian law that since been put on hold demonstrators wanted withdrawn for good Chinese officials have reminded protesters that the Chinese military could legally be called upon by Hong Kong's leadership analysts say that's unlikely but it has added to uneasiness in the city Colombian Egon Bernal won the Tour de France on Sunday the first person from his country to do so and at twenty two the youngest torture France winner in one hundred ten years the Wall Street Journal Joshua Robinson says it was one of the most exciting tours in the three decades. What made this race so exciting is that we really didn't know who is GonNa win until the last three or four stages and that's not common in the modern modern sort of France? The past few years team ineos mostly known as team sky in those days. would be like a Boa constrictor this race taking control early and slowly suffocating. What we had here was a French guy named Julian Allah Felipe who wasn't supposed to be in the Yellow Jersey attacking all the time holding the Yellow Jersey for fourteen days his and giving this race <hes> some flavor and a little bit of French hope which we haven't which we haven't seen in several years now but ultimately it was bernal who pulled ahead in Brunell is twenty two years old from Columbia and he is a cycling prodigy this guy as his teammate Gareth Thomas said was born to go uphill fast he lives at altitude and trains at altitude in Columbia so that even some of the highest climbs at the twitter France where actually lower than where he lives and he is just so cool and so poised that you get the sense that not only was ready to win the twitter France but the first of many that's The Wall Street Journal Joshua Robinson? We're in the midst of earning season and there's more to come this week including reports from apple proctor and gamble and Kellogg joining me now with more on what we're seeing so far and what we're watching this week is Wall Street Journal reporter Mike Worst Horn so mike we heard from a bunch of companies last week including several tech giant's. What can you tell us about what we're seeing from that sector in particular so there's been a lot of surprises which is something that's been helping to rejuvenate rejuvenate the market a little bit the S&P five hundred rose another two percent so far in July and it'd be part of that is because you have seen some of these big tech name some of these big tech companies post better than expected earnings alphabet being one of the more recent ones that did that you know during their trading on Friday they were up double digits at certain points of the day just because investors really enthusiastic about a company like that still being able to show that it can continue to generate profits in revenue in a more challenging economic climate twitter was another one that also had very well received results but the situation has been somewhat mixed amongst some of the technology names facebook being one of them they had great earnings but they have <hes> various regulatory issues that they're coping with so the stock price was a little more muted in terms of the reaction to that you know that said out of the entire S&P five hundred nearly a third of the companies that have reported so far have beaten expectations so far? This has been a pretty well received earnings reporting season so let's talk about some of those companies reporting this week cool you be keeping a close eye on will apple's going to be one of the biggest ones and that's GonNa be extremely important just because you know one. It's Tech Company in two. It's a manufacturer and I think the one things that's really stood out this earning season you know part from the ones that are doing really well is that manufacturers industrial manufacturer specifically or having a pretty tough time caterpillar warrant about their earnings over the last week and that's because there are trade tensions in you're seeing slowing economic growth in other parts of the world like Asia in Europe so for apple well you know they warned earlier this year that some of those concerns that are affecting caterpillar were also affecting them so investors will want to see whether or not that's still the case or if apple sort of joining some of the other tech companies and and are able to sort of you know muscle through this challenging period so we often talk about uncertainty over trade. What are some other potential roadblocks on the horizon? We'll I guess the other next big ones going to be the the Federal Reserve meeting and that's going to be coming up this week as well and investors will want. Let's see whether or not the FEDS GONNA actually cut interest rates right now. The expectation of interest rate cut is heavily baked into stock prices. The S. and P. five-hundred is up twenty percent a big chunk of that is because of those rate cut expectations not so much earnings and not so much some of these other factors that were helping the stocks last year like say the tax cut so you know that said if the Fed doesn't move forward and cutting rates or signals that you know they'll be less ray cuts on the table than expected analyst and investors are preparing for a bit of volatility. They expect stocks that have to come down because you just can't pray stocks at the level the rat now the interest rates aren't gonNA come down so that's probably just as important as trade tensions which you know continue to linger in the background right now. That's Wall Street Journal reporter Mike Worst Horn. Thanks so much Mike Venture capital one knows life doesn't alert you about your credit card. That's why they've created E-e-e-e-no the capital one assistant that catches things that might look wrong with your credit card N._o.. Catches over tipping duplicate charges or potential fraud and then sends an alert sheer phone and helps you fix it. It's another way capital. One is watching after your money when we're not capital one. What's in your Wallet See Capital One dot Com for details else the U._S.? In China resume high level talks in Shanghai this Tuesday after negotiations broke down in May the Wall Street Journal Charlie Turner spoke with reporter Josh Zoom Bruin for more details on what are likely to be the most contentious issues what topics are expected to be discussed. I think among them near the top would be the terrified. That's currently going on also intellectual property technology that sort of thing so those were the big the big issues when the talks broke down in May <hes> and those are still the biggest issues the U._S. wants China to commit to real fundamental changes in the structure of its economy China wants the U._S. to drop all these tariffs once and for all China really wants the U._S. to back off the technology telecommunications company while away. Nobody really thinks they're going to make huge progress on these really big issues this week. I mean this is the first time getting back to talks in over two months after the big break down so the people are thinking that maybe they're going to be focusing on a more limited set of issues one area where they could make some progress is agriculture. The president has really president trump has really wanted China to commit to making more U._S. The U._S. agricultural purchases. This trade war has been incredibly hard on the U._S.. Farm economy president trump has thrown a new wrinkle into the U._S.. China trade dispute on Friday. He pressed the World Trade Organization to change how it defines developing in countries and that means really he wants China to no longer be defined as the developing nation because he thinks that gives China an unfair advantage. Could you explain that yeah. This is an interesting little issue at the World Trade Organization where countries can go to dispute each other's trade practices practices but China benefits from the status that they're they're considered a developing country and so they do get some special benefits in these negotiations the reason the W._T._o.. was set up this way was to basically recognize that developing countries need a little bit of help to to get on their feet and be competitive in the international arena and so the argument that the U._S. makes is that for a country like China. This is the world's second largest economy. No longer makes sense for them to get this sort of preferential treatment and so you know it's an interesting little development. Element that as they're heading to Shanghai for new round in negotiations the U._S. has also kind of applying this pressure on the W._T._o.. In a way that would hurt China now. It's hard to say if this is going to be a big top level issue for China and the U._S.. US In the negotiations separate forums where W._T._o.. Issues can be discussed the W._T._o.. Is Everyone in the world not just the U._S.. In China so there's a lot more input that you would need to see other than just how the U._S. and China feel about that issue so it's an an interesting development but I suspect it's not going to be central to the trade talks. The bottom line is that it's a pre tough road for these two sides to even get back to where they were at the beginning of May and to get a big comprehensive deal is going to be really hard because the politics I think gotten harder in both countries China has its own hardliners who don't want to see their president. Give into president trump obviously U._S.. Hardliners don't want the U._S.. To go easy on companies like wow way which are which are so so integral to the telecommunication system in the world that people fear it could be a way for the Chinese to really meddle in things and pose a real national security issue and U._S.. Hardliners don't want the U._S. to give anything up there so in some ways these talks have gotten a lot harder over the past two months and that's why people aren't expecting huge breakthrough this week in Shanghai and finally here are some of the big stories to look out for this week we are of course keeping a close eye on the Federal Reserve which is expected to cut interest rates for the first time in over a decade that plan got a vote of support from former fed chair Janet Yellen The Wall Street Journal Nick Tim Rose Says Moore on Yellen's comments at at an economic event in Aspen Colorado over the weekend Janet Yellen. The former chair of the Fed was asked on Sunday what she would do if she were still leading the central bank and she said she would vote for a quarter percentage point cut in the feds benchmark rate this week not because she thinks economies during badly she actually said she thinks the economy's doing pretty well the job market strong but she said inflation looks too low. It's been running below the feds two percent target this year and global growth growth looks weak and it could beginning weaker because of the trade conflict <hes> between the U._S. and China. She said that businesses have been slowing their investment decisions because of uncertainty about trade and that what happens the rest of the world the slowdown in Europe and Asia will affect the United States eventually she also said a reason to cut interest rates this week would be because markets expect it. The Fed shouldn't do what the market wants or what the market expects she said but when the market sees the same things the Fed does anticipates the feds actions and the Fed agrees with the markets logic she thinks it makes sense for the Fed to go ahead and cut rates the Fed meets on Tuesday and Wednesday this week beyond meet the first alternative meet startup to go public reports earnings on Monday. The company is share price more than doubled in its debut Tuesday brings reports from drugmaker Pfizer and proctor in gamble and apple also reports on Tuesday after the market close and the democratic debates head to Detroit Michigan State Donald Trump one in two thousand sixteen will have more from voters and what's watch as we gear up for the second round of democratic debates.