Here we are in the final days of June, which also marks the end of the second quarter, and half the year. That also means that the second quarterly earnings season will be starting in a couple weeks, and they will be extremely interesting. Amazingly, only 49 of the S&P 500 companies have provided guidance as to what their earnings will be. That’s astonishing! I suppose you can’t miss your target when you don’t have one, right? And if their earnings are low, how will that be interpreted if they were expected to be low? I honestly don’t know how this earnings season will be interpreted, but we all have to believe that earnings will be extraordinarily low. The real earnings season in question will be next quarter, which will be reported in October.
Anyway, the Dow (-3.3%), NASDAQ (-1.9%), and S&P 500 (-2.9%) were all down last week, with most of the carnage occurring on Friday. On Friday, the Fed announced restrictions to large banks from raising dividends and share buybacks, both of which would normally favor their stock prices. Plus, reported cases of COVID 19 surged in many states, and some of the largest states in the US (namely, Texas and Florida) have reinstated public restrictions, which would have impacts on their economies as well.