The Bottom Line
The proverbial “Summer Rally” for the North American equity indices between June 27th and July 17th is “off to a good start”. North American equity indices have a history of moving higher prior to release of encouraging second quarter corporate results. Europe and Chinese equity markets also “caught the trend”.
Earnings and Revenue Consensus for S&P 500 Companies
Source: www.factset.com
Analysts issued minor positive changes to their 2026 earnings and revenue estimates last week
- Consensus for second quarter 2026 earnings gains increased to 23.3% from 23.1% last week. Consensus for revenue gains slipped to 12.2% from 12.3%.
- Consensus for third quarter 2026 earnings gains increased to 26.8% from 26.7%.last week. Consensus for revenue gains increased to 10.8% from 10.7%.
- Consensus for fourth quarter 2026 earnings gains increased to 24.4% from 24.2% last week. Consensus for revenue gains increased to 10.4% from 10.2%.
- For all of 2026, consensus for earnings gains increased to 24.1% from 24.0% last week. Consensus for revenue gains slipped to 10.8% from 11.2%
Economic News This Week
Source: www.marketwatch.com
June ISM Services are released at 10:00 AM EDT on Monday
Minutes to the June FOMC meeting are released at 2:00 PM EDT on Wednesday
June U.S. Existing Home Sales released at 10:00 AM EDT on Thursday are expected to be 4.2 million units versus 4.2 million units in May.
Selected Earnings News This Week
Source: www.Investing.com
Quiet week ahead!
Monday: Northwest Company
Tuesday: Levi Strauss
Thursday: PepsiCo, Progressive
Friday: Delta Airlines
Technical Notes
US Global Jets ETF (JETS) moved above $33.60 to an all-time high extending an intermediate uptrend. Benefitting from lower jet fuel prices!
Europe iShares (IEV) moved above $73.16 to an all-time high extending an intermediate uptrend.
S&P 100 and NASDAQ 100 stocks moving above resistance extending an intermediate uptrend included Vertex (VRTX) on a move above $507.92,$519.68 and$519.88, General Dynamics (GD) on a move above $366.38, Union Pacific (UNP) on a move above $278.25 and Okta (OKTA) on a move above $142.35, Door Dash (DASH) on a move above $191.17, Regeneron (REGN) on a move above $640.82, Visa (V) on a move above $357.14, Coca Cola (KO) on a move above $83.50 and Medtronic on a move above $82.09
Canadian REIT iShares (XRE.TO) moved above Cdn$17.28 to an all-time high extending an intermediate uptrend.
U.S. Telecommunications iShares (IYZ) moved below $41.08 and $40.43 completing a short term Head & Shoulders pattern.
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for July 2nd 2026
Green: Increase from previous day
Red: Decrease from previous day
Source for all positive seasonality ratings: www.EquityClock.com
Commodities
Daily Seasonal/Technical Commodities Trends for July 2nd 2026
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for July 2nd 2026
Green: Increase from previous day
Red: Decrease from previous day
Changes Last Week
Links offered by valued providers
Mike Campbell’s Money Talks for July 4th
Michael Campbell’s MoneyTalks – Complete Show (mikesmoneytalks.ca)
Agribusiness ETF: Outside Reversal; Surges Off Bullish Setup Zone; Next Key Level: Arthur Hill
Agribusiness ETF: Outside Reversal; Surges Off Bullish Setup Zone; Next Key Level (stockcharts.com)
The Market Is Rewarding Different Stocks: Mary Ellen McGonagle
The Market Is Rewarding Different Stocks – YouTube
Major Trendlines Break, Semiconductor Trade Implodes, Institutions Got You! Here’s The Target: Gareth Soloway
Oil Is Bottoming and the Third Super Cycle Has Started | Josef Schachter, Schachter Energy Report
Update On The ‘G-Shaped’ Versus ‘K-Shaped’ Economy Debate: Dave Yardeni
Update On The ‘G-Shaped’ Versus ‘K-Shaped’ Economy Debate – YouTube
Collapsing Yen More Important Than Many Think: Mark Leibovit
Collapsing Yen More Important Than Many Think – HoweStreet
Trading Desk Notes for July 4, 2026: Victor Adair
Trading Desk Notes for July 4, 2026 – HoweStreet
This Week in Money: Ross Clark, Eric Hadik, Rick Ackerman
This Week in Money – HoweStreet
S&P 500 Momentum Barometers
The intermediate term Barometer added 3.00 on Friday and gained 2.40 last week to 67.00, a 4 month high. It remained Overbought. Daily uptrend was extended on Friday.
The short term (20 days) Barometer added 4.20 on Friday and gained 5.60 last week to 68.20. It remained Overbought.
The long term Barometer added 3.80 on Friday and gained 4.80 last week to 67.60. It remained Overbought. Daily uptrend was extended on Friday.
TSX Momentum Barometers
The intermediate term Barometer added 5.45 on Friday and gained 11.82 last week to 60.00. It remained Neutral.
The short term Barometer added 7.27 on Thursday and gained 18.18 last week to 66.82. It changed from Neutral to Overbought on a move above 60.00.
The long term Barometer added 2.27 on Friday and gained 18.18 last week to 64.55. It changed from Neutral to Overbought on a move above 60.00.
Disclaimer: Seasonality ratings and technical ratings offered in this report and at
www.equityclock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.
|
|
Equity Clock Publications