| Monday's Headlines 1. US markets rise behind Apple 2. Gold hits another new record high 3. Corporate outlooks are weak 4. Big week for big tech results 5. Cargo alert in Texas Markets Closed
 Markets Today U.S. markets kicked off the week on a high note as Apple's stock paved the way, helping drive all U.S. indexes higher. The other big tech stocks also traded higher ahead of their earnings reports this week. Their results, but more importantly, their guidance, may guide the way for the rest of the earnings season. (I spoke about what to expect from these companies on Yahoo Finance this morning, in case you want the video version.)
Gold hit another record high as tensions continue to rise between China and the U.S. Coronavirus cases hit new highs in America, and a resurgence of new cases in China and Europe added more uncertainty to the global recovery, which has been uneven and full of setbacks.
U.S. House Republicans unveiled their version of a next stimulus plan shortly after the market closed. While all the details are still being examined, Senate Majority Leader Mitch McConnell said the legislation would include, among other provisions, relief for jobless Americans, another direct payment to individuals of up $1,200, more funds for Paycheck Protection Program small business loans, and liability protections for doctors and businesses.
Let the politicking begin!  Image courtesy Schoolhouse Rock
Headlines:
 chart courtesy BofA Research
Earnings Vocabulary Check We are in the teeth of earning season, which was expected to be among the worst in history. As of this morning, 127 S&P 500 companies have reported and results are tracking 2% above analysts' expectations. Here's what else we learned so far:
But, it's what companies are saying about the future that may be contributing to the sour sentiment that has crept into the market in the past week. BofA Research has been tracking the words corporate executives are using in their conference calls with investors and analysts, and here are some of the takeaways:
 Their Words Really Matter All company reports are important, but investors may be paying particular attention to what Apple, Amazon, Facebook, and Alphabet say this week when they report results.
We know Amazon has benefited in many ways from the pandemic, whether it's through its e-commerce dominance, Amazon Prime subscriptions, or its profit-gushing Amazon Web Services division. It's no surprise that Amazon is the best performer of the trillion dollar tech giants.
Google and Facebook are facing advertising revenue declines that can be attributed to the pandemic or Facebook's willingness to allow hate-speech and other controversial advertising on its platform. Still, their stocks have marched higher as investors respect their dominance, even if lawmakers question it.
Apple has lost some revenue as well, as it had to close many of its retail locations in the U.S. due to the pandemic. But 5G is coming, and Apple will sell the hardware many people experience it on, so the outlook may be brighter than it has been for the company in months.  Cargo Alert I can't resist a freight train running down the tracks, and I finally caught one outside of Amarillo, TX this morning. It was double-stacked with containers from all over the world, but sadly, it wasn't moving. It's still a moving image, though.
(Don't worry... my wife was driving when I snapped this shot, and while I wrote today's note.)
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(chart courtesy YCHARTS)  Biotech firm Biogen's stock rose today after receiving an upgrade from a Morgan Stanley analyst. Timberland real estate investment trust Weyerhauser and home-builder D.R. Horton are both up on anticipation of earnings announcements late this week.  Hasbro's stock fell by more than 7% today after it reported weak earnings, as factory shutdowns disrupted the toymaker's supply lines. The continuing resurgence of the virus in a number of countries throughout the world sent travel-related stocks falling, including Norwegian and Carnival cruise lines and casino and hotel business, MGM Resorts. Word of the Day A Wells Notice is a notification issued by regulators to inform individuals and companies of completed investigations where infractions have been discovered. It usually takes the form of a letter, which notifies recipients of both of the broad nature of the violations uncovered, and of the nature of the enforcement proceedings to be initiated against the recipient. The Wells notice is named after the Wells Committee, formed in 1972 by then-SEC Chairman William J. Casey in order to review the SEC's enforcement practices and policies, and chaired by John Wells.  photo courtesy BofAMerrill
Today in History July 27, 1971: Merrill Lynch & Co. goes public, becoming the first New York Stock Exchange firm to do its own initial public offering on the NYSE. Two things stand out: The brokerage industry has waited nearly 200 years to share their profits with the public. And Merrill Lynch -- which is "bullish on America" -- invites the public to own a piece of the bull less than a year-and-a-half before the onset of the worst stock market slump since 1929.
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Monday, July 27, 2020
Between the Lines
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