Wall Street is experiencing the best month since January, and look forward to the influx of profitability is expected to continue upward trend next week, but significant gains may be hard to come by, the main stock index hit a record high.
Eight Dow components and Apple (AAPL.O: Quote) between the company will report earnings season one of the busiest weeks. Some S & P 500 index of 157 companies will announce the results.
Higher than forecast second-quarter earnings so far, but analysts estimate that since declined sharply since the beginning of this year. S & P 500 strong corporate earnings growth of 2.9%, according to Thomson Reuters data, down 8.4% growth expected in the beginning of the year. Revenue growth of 1.1%.
Nevertheless, the stronger than expected report prompted IBM (IBM.N), General Electric (GE.N: Quote) and other income. In addition, the Wall Street banks Citigroup Inc. (Citigroup), Goldman Sachs (Goldman Sachs) and Morgan Stanley (Morgan Stanley) reported strong earnings.
This week, the Dow rose 0.5 percent, the S & P rose 0.7 percent, the Nasdaq composite index fell 0.3%. Benchmark S & P this year, an increase of 18.6%.
In other respects, Microsoft (MSFT.O: Quote) is a big disappointment, but on Friday, its shares fell by 12%. Microsoft and Google (GOOG.O) below Wall Street expectations, causing its shares to slump.
Fri reported in S & P 500 Index 104 companies, 65.4% have earnings above analysts' expectations, while 51% of the income estimates breakthrough.
Eyes on Apple
America's second-largest market capitalization company, Apple, to see whether it can reverse the trend of high-tech sector weaker than expected earnings will be watching. The company, which is due to report after the close of market on Tuesday, is expected to fall by more than 21% of the quarterly profit and revenue growth of 0.2%.
U.S. Federal Reserve Board has been for a long time the main driving force of the market. But this should not be changed, at least for some time, reassure investors that the Fed will have the flexibility in the timing of its withdrawal of stimulus measures, will keep interest rates low for a longer period.
Fed stimulus played an important role, so far this year, ahead of the Standard & Poor's. Investors are now presumed to be the next catalyst for earnings drive the market higher.
"So far, the Fed to support the upward movement, but at a certain point there is a switch, and profitability will have to take over," said Allianz Global Investors in New York, head of investment strategy and client Christina Hooper. "Earnings will be the key to the future recovery of the stock market."
Analysts are generally optimistic about the second half of 2013, although they have been slowly reducing the estimated third quarter and fourth quarter, reflecting concerns about economic growth.
In the fourth quarter, the third quarter is expected to be 7.8% and 12.4%, earnings per share growth. This July 1 estimated growth of 8.5% and 13% growth, respectively, compared according to Thomson Reuters data.
The need for revenue growth
Revenue growth was particularly important, "Ameriprise Financial in Boston, chief market strategist David Joy said." "If income does not increase, it will be very difficult to increase the bottom line."
Joy, who helps oversee about $ 70.8 billion of assets, adding that it was pleased to see a slight advance of future income expectations.
"My feeling is that next week, the market can hang in there," he said. "The current trend is up."
General Electric CEO Jeff Immelt (Jeff Immelt) said he was bullish outlook for the rest of this year sentiment echoed by other executives.
Analyst at William Blair & Company, GE shares trading, but Nick Heymann says GE to achieve its goals by 0.7% in 2013 to improve profitability will "need to improve in the second half daunting.
Reported that 21% of the S & P component about two-thirds beat profit expectations, slightly higher than the historical average. About half of the companies have exceeded revenue forecasts, the rate of better than average in the past four quarters.
Earnings next week roster including Dow AT & T (TN), McDonald's (MCD.N) and Boeing (BA.N). Ford Motor (FN), Visa (VN) and United Parcel Service (UPS.N) also due. UPS, agents are considered as commercial activities, recently cut its outlook on the grounds that the weak U.S. economy and overcapacity in the global air cargo market.
Economic indicators next week, including new and existing home sales. Between builders sentiment remains bullish, despite the housing starts and permits future homes in June hit a 10 month low.
"Clearly, there is a big surprise down will cause a lot of caution," said Andrew Yorks, in four wooden Capital Partners in New York's chief investment officer. "Focus on the housing sector has been a core component of the Fed."
June existing home sales, which is due Monday, up 0.6 percent compared with the previous month's 4.2 percent jump. June new home sales also rose, according to Thomson Reuters estimates.
 



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