10/18/19 – Stocks Mixed as Earnings Start

Banks kicked off third quarter earnings with stronger than expected results. JP Morgan, Citibank and Bank of America all reported stronger earnings than the analyst consensus. Earnings for most of the S&P 500 companies will come over the next few weeks, which will hopefully give us a nice break from trade-related headlines. For the week, the Dow declined 0.2% while the S&P 500 increased 0.5%. Read More

The last two weeks have seen the ramifications of mixing sports and politics. On October 4th, the General Manager of the NBA’s Houston Rockets sent a pretty innocuous tweet supporting the protestors in Hong Kong. This immediately set off a firestorm with essentially every Chinese company with a financial relationship with the NBA suspending those deals. NBA Commissioner Adam Silver danced around issue saying he supports free speech for all NBA employees, but not speaking out against China in its attempt to increase control over Hong Kong and its residents. Lebron James, arguably the game’s biggest star, appeared to speak on China’s behalf in arguing the GM’s tweet wasn’t very educated. Today, Silver said, “the financial consequences have been and may continue to be fairly dramatic.” This appears to be a much more significant financial hit than the NFL felt following the national anthem protests and illustrates the point that sports leagues that venture into the political arena risk hurting their league financially. Read More

Oil decreased 1.8% this week to close at $53.70/barrel. The yield on the 10-yr Treasury ticked higher, closing at 1.75%, from 1.74% last week. The average rate on a 30-yr fixed rate mortgage moved higher to 3.69% from 3.57% last week.     

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