On July 19th, The Dow Jones Industrial Average (DJI) gained almost 0.1% and closed at 18,533.05, while the S&P 500 climbed 0.2% and closed at 2,166.89. In the same time, the tech-laden Nasdaq Composite Index increased 0.5% to close at 5,055.78.
Investors are likely waiting for June employment report within a quick switch in financial markets from fears over the U.K. referendum.
The U.K. referendum is expected to slightly impact the U.S. growth, which is considered by far one of the main reasons that accelerated buying in the Treasury market this month. By the end of the first week, earnings for the S&P 500 components were extremely poor. Bank of America Merrill Lynch analysts have lowered their earnings expectations to show no growth on 2016.
The bank is expected to this year accelerated due to uncertainty of several risk events such as Chinese economic data reports Excon Fuji Securities, Brexit and the presidential election. All major events could have negative effects on earnings, thus, companies end up investing less due to this uncertainty.
Given their global exposure, Financials, Industrials, Tech and Energy are expected to struggle throughout 2016. In the meantime, the dollar is expected to be stable in 2017, which should help boosting multinational earnings.
