The Bottom Line
The summer doldrums period for world equity markets from the third week in August to the first week in October was extended.
Earnings and Revenue Consensus for S&P 500 Companies
Source: www.factset.com
Analysts increased their 2026 and 2027 earnings and revenue estimate again from their previous August 14th estimates. Ninety seven percent of S&P 500 companies have reported calendar second quarter results to date.
· Consensus for second quarter 2026 earnings gains increased to 52.0% from a previous 50.4% gain. Consensus for revenue gains increased to 15.5% from a 15.0% gain
· Consensus for third quarter 2026 earnings gains increased to 28.2% from a previous 15.0% gain Consensus for revenue gains increased to 11.7% from a previous 11.3% gain.
· Consensus for fourth quarter 2026 earnings gains increase to 25.8% from a previous 25.2% gain. Consensus for revenue gains increased to 11.9% from a previous 11.5% gain
· For all of 2026, consensus for earnings gains increased to 31.2% from a previous 30.0% gain. Consensus for revenue gains increased to 11.9% from a previous 11.5% gain.
· For all of 2027, consensus for earnings gains increased to 14.4% from a previous 13.6% gain. Consensus for revenue gains increase to 8.9% from a previous 8.4% gain.
Economic News This Week
Source: www.MarketWatch.com
August U.S. Manufacturing PMI released at 10:00 AM EDT on Tuesday is expected to slip to 55.1 from 55.6 in July
July U.S. Construction Spending released at 10:00 AM EDT on Tuesday is expected to drop 0.1% versus a 0.1% drop in June.
July U.S. Factory Orders released at 10:00 AM EDT on Wednesday are expected to increase 0.5% versus a 0.3% drop in June.
Beige Book is released at 2:00 PM EDT on Wednesday
U.S. Trade Deficit in July released at 8:30 AM EDT on Thursday is expected to increase to $89.7 billion from $73.3 billion in June
August U.S. ISM Services released at 10:00 AM EDT on Thursday is expected to increase to 54.4 from 54.1 in July
August Non-farm Payrolls released at 8:30 AM EDT on Friday are expected to increase 50,000 versus a 23,000 drop in July. August Unemployment Rate is estimated at 4.1%, unchanged from July. August Hourly Earnings are expected to increase 0.2% versus a 0.1% increase in July. On a year-over-year basis, August Hourly Earnings are expected to increase 3.0% versus a 3.1% increase in July.
Selected Earnings News This Week
Source: www.MarketWatch.com
Quiet week!
Tuesday: Medtronic, Palo Alto, Couche Tard, Dell
Wednesday: Brown Forman, Five Below, Snowflake, NetApp, Hewlett Packard Enterprises, Broadcom
Thursday: Victoria’s Secret, Campbell Soup, Lulu lemon, DocuSign, Ciena
Trader’s Corner
Equity Indices and Related ETFs
Commodities
Sectors
Changes Last Week
Technical Notes
Palladium ETN (PALL) moved above $24.92 and $25.23 completing a reverse Head & Shoulders pattern.
Microsoft (MSFT) a Dow Jones Industrial Average stock moved above $512.76 extending an intermediate uptrend.
Links offered by valued providers
Michael Campbell’s Money Talks for August 29th
https://mikesmoneytalks.ca/category/mikes-content/complete-show/
Dan Niles: I have a simple rule, and that is don’t fight the Fed
Dan Niles: I have a simple rule, and that is don’t fight the Fed – YouTube
Canadian banks beat with 35% capital-markets gain: BNN
Canadian banks beat with 35% capital-markets gain – YouTube
Gold Dumps, Bitcoin Cracks As Rate Hike Odds Flip – Trades And Analysis
Gold Dumps, Bitcoin Cracks As Rate Hike Odds Flip – Trades And Analysis – YouTube
The VIX Is Near the Lows of the Year. Cem Karsan Says Don’t Sleep on It.
The VIX Is Near the Lows of the Year. Cem Karsan Says Don’t Sleep on It. – YouTube
Weakening Market Breadth Could Signal Trouble Ahead: David Keller
Weakening Market Breadth Could Signal Trouble Ahead (stockcharts.com)
The Rally is Still Working, But It’s Getting Selective: Mary Ellen McGonagle
The Rally is Still Working, But It’s Getting Selective (stockcharts.com)
Using Seasonality to Enhance Your Trading Results: Tom Bowley
Using Seasonality to Enhance Your Trading Results (stockcharts.com)
Mark Leibovit: Bond Market Going Down Due to US Debt – Aug. 27, 2026
A Very Optimistic Forecast For Gold and Bitcoin
Mark Leibovit: Bond Market Going Down Due to US Debt – Aug. 27, 2026 (substack.com)
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 0.40 on Friday and fell 4.40 last week to 53.60. It remained Neutral. Daily downtrend was extended.
The short term (20 days) Barometer dropped 1.40 on Friday and fell 6.80 last week to 44.00. It remained Neutral. Daily downtrend was extended.
The long term Barometer added 0.60 on Friday but dropped 1.40 last week to 71.00. It remained Overbought
TSX Momentum Barometers
The intermediate term Barometer added 0.25 to 55.05 on Friday, but dropped 3,85 last week to55.05. It remained Neutral.
The short term (20 days) Barometer dropped 3.44 on Friday and fell 8.91 last week to 47.25. It remained Neutral.
The long term Barometer dropped 2.42 on Friday and fell 1.51 last week to 69.27. It remained Overbought.
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