It's earnings season again! More than 90 of the biggest U.S. companies will report results this week, giving a clearer picture of what's expected to be the fourth straight quarter of declining profits. Based on analysts' forecasts for companies in the S&P 500 index, Thomson Reuters predicts adjusted earnings per share for the second quarter will be down 4.7% from a year earlier, following a 5% drop in Q1. (SA)
Meanwhile, several big pieces of news out of Europe today: the Italian government is working on plans to set up a €50B bad bank bailout. The scheme could help clean up the nation's stricken lenders, but also puts the country on a collision course with the EU, which does not want taxpayers bailing out banks before private investors take a hit. Across the Mediterranean, in Turkey today, stocks are headed for their worst loss since 2013 following a failed coup attempt. (SA)
Finally, deal activity is remaining strong: SoftBank (the Japanese owner of Sprint) has acquired chip designer ARM Holdings for ($32B), as the Japanese telecoms giant bolsters its presence in the growing Internet of Things sector. The deal will see SoftBank pay a 43% premium to ARM's closing price last week, making the deal the largest ever purchase of a European technology company. (Ft)
S&P 500 futures are up 3 and NASDAQ futures are up 6. The MSCI international index is up just under 1/2 a %.
Oil is down $.50 at $45.45 a barrel.
Gold is up $1.40 at $1329 a Troy ounce.
With Northwest Quadrant Wealth Management a Registered Investment Advisor I am Josh Fenili.