Thanksgiving Week / Earnings Wrap – Monday Morning Market Memo – November 19, 2018

Good morning,

The markets are of course closed on Thursday for Thanksgiving, and close early on Friday, with stock market trading ending at 1:00. According to the National Turkey Federation, Americans will eat 46 million turkeys this holiday, and the National Retail Federation forecasts 116 million Americans will shop on Black Friday – the “kick off” to the holiday shopping season. Most importantly though, we hope you all enjoy Thanksgiving and get to enjoy some quality time with family and friends.

Wrapping up earnings season – with 92% of the companies in the Standard & Poor’s 500 Index having already reported earnings for the third quarter of 2018 – 78% have reported earnings above the average estimate (which is above the 5-year of 71%), and 61% have reported sales above estimates (which is above the 5-year average of 59%), according to data from FactSet.

Big picture, the overall market has not been rewarded by the better-than-expected earnings. Other factors such as trade tensions with China, a Federal Reserve that is raising interest rates, and worries by some investors that we are at peak earnings have been headwinds. These items will be even more in focus as earnings season wraps up. The market will be laser focused on U.S/China trade relations when President Trump and Chinese President Xi are expected to meet later this month and discuss the issue at the G20. Until then, Happy Thanksgiving!

All the best,
Southport Station Financial Management, LLC