Stocks today appear on track to open modestly lower after making
steady gains in the last couple of sessions. This morning's data
docket hasn't been helpful either, with a number of mixed earnings
reports adding to a soft housing read.
Today's housing data came on the weak side, with both Starts and
Permits coming shy of expectations for a second month in a row,
confirming that that housing recovery has lost some of its mojo.
Starts remained under the one million mark in June, on an
annualized seasonally adjusted basis and the May numbers were
revised down to under the one-million level as well. Starts for
single-family homes dropped 9% while multi-family structures
Housing Permits, a leading indicator of future demand, dropped
4.2% in June. The only positive in this otherwise weak report was
the single-family permits which increased at 2.6% in June, the best
growth pace in almost 6 months.
On the earnings front, this morning's busy docket of reports
included strong reports from
) didn't impress with their numbers.
) missed Q2 results, but guided higher for the current and coming
We will see results from
) after the close today. The Q2 Scorecard after this morning's
reports shows results from 66 S&P 500 members that combined
account for 18% of the index's total market capitalization.
Total earnings for these 66 companies are up +5.5% from the same
period last year on +4.2% higher revenues, with 68.2% beating EPS
estimates and 55.2% coming out with positive revenue surprises. The
earnings and revenue growth performance from these 66 companies
compares favorably to what we saw from the same group of companies
in the preceding quarter. Compared to the average for the four
quarters through 2014 Q1, the earnings growth rate and beat ratios
are roughly in-line, while the revenue performance is modestly
We still have plenty of reports to go, but the earnings cycle
has gotten off to a positive start. This should put more confidence
into estimates for the current and following quarters.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
To read this article on Zacks.com click here.