Market Perspective for June 24, 2019

Equities were mixed on Monday with the Dow Jones Industrial Average gaining 0.03 percent and the S&P 500 Index down 0.17 percent. Sector performance was mixed as well. SPDR Materials (XLB), SPDR Consumer Staples (XLP) and SPDR Technology (XLK) gained 0.42 percent, 0.24 percent and 0.18 percent, respectively. SPDR Energy (XLE), SPDR Consumer Discretionary (XLY) and SPDR Consumer Discretionary (XLY) declined 0.90 percent, 0.48 percent and 0.53 percent.

Consumer confidence for June is out on Tuesday and Friday, with the first from the Conference Board and then the University of Michigan. Durable goods and capex orders from May will be released, along with new home sales. Analysts predict an annualized pace of 669,000 for the latter.

The final GDP revision for the first quarter will be out on Thursday. Economists forecast it will hold steady at 3.1 percent growth.

FedEx (FDX) earnings will be closely evaluated after the close tomorrow, as will the ensuing conference call on Wednesday morning. FedEx has typically had its finger on the pulse of the global economy and their results could forecast expectations for the second half of 2019.

The G20 summit of world leaders will take place this week in Osaka, Japan.  Meetings will be held on Friday and Saturday. The main event will be a sideline meeting between President Trump and President Xi.

Cal-Main (CALM), Aerovironment (AVAV), Lennar (LEN), KB Home (KBH), Rite Aid (RAD), General Mills (GIS), Walgreen Boots Alliance (WBA), Nike (NKE), Conagra (CAG) and Constellation Brands (STZ) also report earnings this week.

In ETF provider news, Invesco changed the underlying benchmark for some of its funds on Friday.

https://www.invesco.com/static/us/investors/contentdetail?contentId=0cdecfedc0a69610VgnVCM1000006e36b50aRCRD&dnsName=us

The funds began trading on Monday and shareholders were converted to the new shares. For example, Invesco Russell MidCap Pure Growth (PXMG) became Invesco S&P MidCap 400 Momentum (XMMO).

 

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