It was a rough start of the week, as the Dow Jones Industrial Average dropped by nearly 100 points before rebounding and ending the day near flat for the day. M&A activity continued as its recent torrid pace, with online real-estate company Zillow announcing it would acquire rival Trulia for $3.5 billion and retailer Dollar General announced their intention to acquire Family Dollar Stores. Oil and Gold were flat for the day, as were Treasuries, with the Ten-Year yield remaining below 2 ½%. Sectors of the S&P were mixed, with Utilities having a very strong day, while economically sensitive shares, such as industrials, fared worst.
Investors are holding their breath ahead of a slew of corporate earnings reports, the busiest week so far, as well as Wednesday’s release of second quarter GDP and Fed Chairwoman Yellen’s testimony after the 2 day FOMC meeting. So far, corporate earnings have been robust, rising 8.3% from Q1 – and up an astounding 10% excluding financials. Politics and geopolitics continue to weigh on investor sentiment, as the rising tensions in Ukraine as well as the Obama’s administration focus on “tax inversion” are raising concerns.
Don’t miss Money Matters with Gary Goldberg this Saturday at 2:00 PM and Sunday at 11:00 AM on WOR 710 AM Radio, when we discuss the latest economic data releases, the impact of the Q2 GDP number being released on Wednesday, as well as having an in depth interview with MIT Finance Professor and author of “America’s Retirement Crisis” Dr. Robert Merton. Visit our website www.ggfs.com for details.