Tranquillity ahead of earnings storm | CMC Markets Daily Commentary
The US equity markets ended on Monday with another record session, albeit major indices struggled to stay merely above last Friday’s close. The S&P 500 index moved up 0.02% to 2014.3 points, lifted by defensive utilities (+0.37%), consumer discretionary (+0.34%), information technology (+0.30%) and health care (+0.21%), while energy (-0.93%), financials (-0.53%) and industrials (-0.41%) were among the draggers.
Currency markets have moved very little due to a lack of catalysts and a seemingly fully-anticipated July rate cut which creates little incentive for trading. Markets also seem to be immune to China’s 2Q GDP reading, which fell to a nearly 3-decade low of 6.2% as a result of economic transformation, weaker global demand and a deteriorating trade environment. This growth rate is well expected by market participants, who also anticipate more monetary and fiscal stimulus to be carried out by Beijing to boost growth in the months to come.
Investors are holding their breath ahead of 2Q earnings season, which might show some weakness due to the global slowdown and trade tensions. The growth of earnings per share (EPS) of the S&P 500 index has already flattened in the first quarter of 2019 compared to the fourth quarter of 2018. The positive effect of tax cuts introduced in early 2018 is fading this year, which will further dampen the earnings’ performance on a year-on-year basis.
Major banks namely Citigroup, JP Morgan, Goldman Sachs and Wells Fargo are due to release their 2Q results tonight. Pharmaceutical giant Johnson & Johnson’s earnings is also due today.
Singapore Press Holding (SPH) is the first blue chip to announce latest quarter earnings in the local market and it disappointed investors with a whopping 44% slump in its net profits. The lower earnings is largely due to a challenging media business, higher operating expenses and higher financing costs.
As Singapore’s economic growth rate slowed to 0.1% in the second quarter, according to recent flash estimates by MTI, many local companies may face headwinds from reduced business activities, rising financing and operating costs and a deteriorating external environment.
Singapore Earnings Calendar
|Singapore Press Holdings Ltd||12/07/2019||Q3 19||0.02||0.037||(45.90)|
|CapitaLand Commercial Trust||17/07/2019||Q2 19|
|Keppel Corp Ltd||18/07/2019||Q2 19||0.113|
|SATS Ltd||19/07/2019||Q1 20||0.058|
|CapitaLand Mall Trust||23/07/2019||Q2 19||0.029|
|CapitaLand Ltd||23/07/2019||Q2 19||0.05|
|Hutchison Port Holdings Trust||24/07/2019||Q2 19||0.019|
|Jardine Cycle & Carriage Ltd||26/07/2019||Q2 19||0.50|
|Ascendas Real Estate Investmen||29/07/2019||Q1 20|
|DBS Group Holdings Ltd||29/07/2019||Q2 19||0.58|
|Singapore Exchange Ltd||31/07/2019||Y 19||0.354|
|Singapore Airlines Ltd||31/07/2019||Q1 20||0.12|
|Dairy Farm International Holdi||01/08/2019||S1 19|
|Hongkong Land Holdings Ltd||01/08/2019||S1 19||0.22|
|UOL Group Ltd||02/08/2019||Q2 19||0.127|
|Jardine Matheson Holdings Ltd||02/08/2019||S1 19||2.58|
|Jardine Strategic Holdings Ltd||02/08/2019||S1 19|
|United Overseas Bank Ltd||02/08/2019||Q2 19||0.61|
|Oversea-Chinese Banking Corp L||02/08/2019||Q2 19||0.283|
|Genting Singapore Ltd||02/08/2019||Q2 19||0.02|
|Yangzijiang Shipbuilding Holdi||07/08/2019||Q2 19||0.235|
|City Developments Ltd||08/08/2019||Q2 19||0.16|
|Singapore Technologies Enginee||08/08/2019||Q2 19||0.046|
|Singapore Telecommunications L||08/08/2019||Q1 20||0.043|
|Venture Corp Ltd||08/08/2019||Q2 19||0.33|
|ComfortDelGro Corp Ltd||13/08/2019||Q2 19||0.04|
|Wilmar International Ltd||13/08/2019||Q2 19||0.042|
|Golden Agri-Resources Ltd||14/08/2019||Q2 19||0.00|
|Thai Beverage PCL||14/08/2019||Q3 19||0.25|
|Sembcorp Industries Ltd||14/08/2019||Q2 19||0.057|
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