The major stock indexes finished last week mostly unchanged. Stocks have started this trading week slightly lower ahead of the busiest weeks for economic reports of the summer.
Asian stock markets traded at a 3 year high after profits earned by the Chinese industrial sector rose 18% in June reinforcing expectations that the Chinese economy is powering through a recent soft patch.
So far half of the companies that make up the S&P 500 Index have reported 2nd quarter earnings and 77% of those companies have beaten expectations which is a big reason that index is at an all-time high.
One of those companies that missed expectations was Amazon. The online retailer missed earnings expectations for the 2nd straight quarter reporting a loss that was double what was expected. Amazon remains one of the most valuable companies in the US while struggling to turn a profit.
Engine maker Cummins reported a 7% rise in quarterly earnings and raised their full year revenue forecasts, citing improving demand from makers of pickup trucks and motor homes in North America. Even though the company beat expectations shares are trading 2% lower in early trading.