Pre-opening Comments for Monday July 20th
U.S. equity index futures were higher this morning. S&P 500 futures were up 31 points at 8:35 AM EDT after Iran signaled openness to talks with the U.S.
The Canadian Dollar was unchanged at US71.18 cents following release of Canada’s June Consumer Price Index at 8:30 AM EDT. June CPI on a year-over-year basis slipped to 2.8% from 2.9% in May.
LXP Industrial Trust (LXP) added $2.46 to $60.97 after Brookfield and CPP Investments offered to purchase the company at $61.20 per share cash. Value of the offer is $5.2 billion.
Domino’s Pizza (DPZ) added $23.90 to $346.08 after reporting higher than consensus second quarter results.
AMC (AMC) advanced $0.32 to $2.27 after reporting higher than consensus second quarter results.
EquityClock’s Market Outlook for July 20th
Manufacturers are the most optimistic heading into the second half of the year than they have been in the past four decades. See:
https://equityclock.com/2026/07/18/stock-market-outlook-for-july-20-2026/
Technical Scoop for July 20th from David Chapman and www.EnrichedInvesting.com
Hostility outbreaks, energy jump, stock falter, precious accumulation. See:
https://enrichedinvesting.com/library/
The Bottom Line
The “Summer Rally” for the S&P 500 Index and the TSX Composite Index normally between June 27th and July 17th came to an abrupt end on Thursday July 16th this year. The S&P 500 Index only gained 1.40% and the TSX Composite Index only added 1.3% during the “Summer Rally” season this year, well below their traditional gains.
Responses to second quarter results released to date by S&P 500 companies other than the technology companies have been surprisingly positive, particularly by major U.S. Bank stocks. Offsetting was significant weakness by technology stocks despite their favourable quarterly results released to date.
Earnings and Revenue Consensus for S&P 500 Companies
Source: www.factset.com
Once again, analysts issued slight increases to their 2026 earnings and revenue estimates last week:
- Consensus for second quarter 2026 earnings gains increased to 24.7% from 23.6% last week. Consensus for revenue gains increased to 12.8% from 12.3%.
- Consensus for third quarter 2026 earnings gains increased to 27.0% from 26.6%.last week. Consensus for revenue gains increased to 10.8% from 10.6%.
- Consensus for fourth quarter 2026 earnings increased to 24.6% from 24.2% last week. Consensus for revenue gains slipped to 10.4% from 10.7%.
- For all of 2026, consensus for earnings gains increased to 24.5% from 24.2% last week. Consensus for revenue gains increased to 10.9% from 10.7%.
- For all of 2027, consensus for earnings gains increased to 17.5% from 17.4% last week and consensus for revenue gains remained at 8.2%.
Economic News This Week
Source: www.marketwatch.com
June Canadian Consumer Price Index is released at 8:30 AM EDT on Monday
June U.S. Leading Economic Indicators released at 10:00 AM EDT on Monday are expected to be unchanged versus a 0.1% increase in May.
May Canadian Retail Sales are released at 8:30 AM EDT on Thursday
June U.S. New Home Sales released at 10:00 AM EDT on Friday are expected to increase to 600,000 units from 580,000 units in May
Selected Earnings News This Week
Source: www.Investing.com
10% of S&P 500 companies have released quarterly results to date. Number of S&P 500 companies reporting this week: 86 (including four Dow Jones Industrial Average companies). Number of TSX 60 companies reporting this week: 3 (bolded)
Trader’s Corner
Equity Indices and Related ETFs
Daily Seasonal/Technical Equity Trends for July 17th 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 17th 2026
Green: Increase from previous day
Red: Decrease from previous day
Sectors
Daily Seasonal/Technical Sector Trends for July17th 2026
Green: Increase from previous day
Red: Decrease from previous day
Technical Notes for Friday
Significant ETFs moving below support setting intermediate downtrends included Technology SPDRs (XLK) on a move below $172.67, Emerging Markets iShares (EEM) on a move below $63.74 and $63.15, Taiwan iShares (EWT) on a move below $101.01 and $97.24 and Global X Uranium ETF (URA) on a move below $38.13
Global Timber and Forestry iShares (WOOD) moved above $69.28 completing a double bottom pattern.
S&P/TSE Capped REIT Index iShares (XRE.TO) moved above Cdn$17.28 to an all-time high extending an intermediate uptrend.
S&P 100 and NASDAQ 100 stocks moving above resistance extending an intermediate uptrend included Target (TGT) on a move above $142.82, Cintas (CTAS) on a move above $208.51, Philip Morris (PM) on a move above $191.46 to an all-time high and Bristol-Myers (BMY) on a move above $61.55
S&P 100 and NASDAQ 100 stocks breaking support setting intermediate downtrends included Netflix (NFLX) on a move below $70.86 and Synopsys (SNPS) on a move below $379.50 and $376.18
Changes Last Week
Links offered by valued providers
Michael Campbell’s Money Talks for July 18th
Michael Campbell’s MoneyTalks – Complete Show (mikesmoneytalks.ca)
Jim Chanos: The Math Ain’t Mathing for the AI Data Center Build
Jim Chanos: The Math Ain’t Mathing for the AI Data Center Build – YouTube
Crash Alert: Semiconductors Near MAJOR Buys After Collapse, Silver & Gold Support, Top Trades: Verified Investing
Dow Transports hit record high: Mark Leibovit
https://www.howestreet.com/2026/07/dow-transports-hit-record-high-mark-leibovit/
Could tech selloff impact the Greenback? BNN Bloomberg
Could tech selloff impact the Greenback? – YouTube
Choose Your Own Adventure: Which S&P 500 Scenario Plays Out Next? ⭐David Kelleer
Choose Your Own Adventure: Which S&P 500 Scenario Plays Out Next? ⭐ – YouTube
Rebalancing is an important discipline for investors right now: Charles Schwab’s Liz Ann Sonders
Trouble for Technology? Julius de Kempenaer
Trouble for Technology? (stockcharts.com)
Not Everything Is Falling; Here’s What’s Strong: Mary Ellen McGonagle
Not Everything Is Falling; Here’s What’s Strong (stockcharts.com)
This week in money: Ross Clark, Martin Armstrong and Jim Willie
Trading Desk Notes for July 18th : Victor Adair
https://www.howestreet.com/2026/07/trading-desk-notes-for-july-18-2026/
S&P 500 Momentum Barometers
The intermediate term Barometer dropped 3.00 on Friday and dropped 4.00 last week to 64.60. It remained Overbought.
The short term (20 days) Barometer dropped 6.00 on Friday and fell 4.60 last week to 58.60. It changed from Overbought to Neutral on a drop below 60.00.
The long term Barometer dropped 2.20 on Friday and fell 3.20 last week to 70.40. It remains Overbought.
TSX Momentum Barometers
The intermediate term Barometer added 0.91 on Friday and dropped 1.00 last week to 54.55. It remained Neutral.
The short term (20 days) Barometer dropped 3.64 on Friday and added 3.64 last week to 56.32. It remained Neutral.
The long term Barometer dropped 1.82 on Friday and fell 3.18 last week to 57.73. It changed from Overbought to Neutral on a drop below 60.00. Daily downtrend was extended.
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
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Equity Clock Publications