This rally may well be on borrowed time despite its decent run over the past five days, thanks to next week’s earnings barrage and an impending Fed decision.
Equities mixed but clock up good performance for the week
“Investors will be pleased to see that the rally in stocks remains intact, having lasted longer than some of the other rebounds we have seen so far this year. But they will be wary of pushing their luck too hard into next week, given the avalanche of earnings heading their way, plus a Fed decision and the first reading on US second quarter GDP that might easily provide fresh recession worries.”
Can earnings season keep up the good news?
“It hasn’t been a bad start to the latest reporting season, but next week is absolutely chock-full of updates, although Amazon, Apple and others are bound to top the billing. Stocks have gone from pricing in full-blown doom to being much more optimistic, but sentiment remains fragile at best, and it wouldn’t take much to spark yet another leg down that rapidly unwinds the gains seen so far in July.”