Global Stocks Inch Higher to Begin the Week
As the earnings season gets underway at Wall Street last Friday, European stocks inch higher but with marginal gains on Monday. About a dozen European companies will be presenting their second-quarter earnings this week. Investors are anticipating strong corporate earnings when the reports begin to flood.
Germany’s DAX posted the biggest rise (+0.5%) before relinquishing those gains. France’s CAC 40 rose 0.16% while the pan-European STOXX 600 climbed 0.23%. The MSCI world equity index, which tracks shares in 47 countries, was flat for the day.
According to Mislav Matejka, an equity strategist from JP Morgan, earnings results in both the U.S. and Europe would likely be strong, beating expectations by a good 4% to 5%.
WTO Receives China’s Complaint on U.S. Tariffs
The World Trade Organization (WTO) received on Monday China’s formal complaint against the United States’ proposed tariff list on $200 billion worth of Chinese goods.
The country’s commerce ministry made good its promise last week that it would lodge a complaint with the WTO against U.S. unilateralism. China opposes Washington’s threat to slap 10% tariffs on a significantly larger $200 billion worth of Chinese imports.
Netflix Takes Center Stage at Wall Street
Streaming giant Netflix Inc. (NFLX) is scheduled to release its Q2 earnings after the closing bell on Monday (6 p.m. Eastern time). Analysts predict Netflix will report $0.80/share on $3.94 billion in revenue.
The company already has 125 million subscribers and its stock price has ballooned by more than 100% this year. The solid performance of Netflix in 2018 unseated Walt Disney Co. (DIS) as the world’s most valuable media company. Netflix hopes to keep its momentum after strong Q4 and Q1 reports.
Shoppers Gear Up for Amazon’s Prime Day
Amazon.com Inc. (AMZN) is expected to rule the internet beginning on Monday, 3:00 p.m. E.T. The annual Prime Day of the online retail giant will last for 36 hours. Customers can have a field day of online shopping. Over a million items will be on sale for what is considered as the biggest sale bonanza.
This year, members can get deals at Whole Foods as well. Prime Day means a lot to Amazon than a one-day annual marketing campaign. The event is also an opportunity to feature its own products and sign in new members on its Prime subscription program.
Boeing Secures Deal at Airshow Opening
The 2018 Farnborough International Airshow opens today in the U.K. This year’s one-week event is the biggest for the aerospace industry. Boeing Co. (BA) immediately beat rival Airbus SE to the draw on opening day.
The U.S. planemaker boasted that it won an order for 14 freight aircraft in a deal worth $4.7 billion. DHL placed the order for the 777 freighters. The logistics group also acquired purchase rights for seven more freighters.