Second quarter earnings will receive significant attention this week, as stocks pushed to new highs on the S&P 500 Index last week. Expectations for solid earnings reports have been growing over the past few weeks and are necessary to keep stocks grinding higher.
The U.S. economic calendar is reasonably light this week, and I expect trading to be relatively slow as we enter the summer doldrums for the markets. Several other potential market moving events include Thursday’s European Central Bank (ECB) meeting and news from the inaugural U.S.-China economic dialogue as officials from both countries are set to meet in Washington this week.
Last week’s disappointingly weak inflation data will most likely keep bonds well-bid on any short-term increase in interest rates.
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