Good Morning,
Happy Monday! It’s been a hot few days but temperatures look likely to cool a bit around the middle of the week.
Markets ended higher last week and look to continue that momentum this morning after a trade deal with the EU was reached on Sunday. Headlines mention the EU will face a 15% tariff on most exports and they agree to purchase $750B in energy products from the US and invest another $600B. Regardless of the exact numbers or any tweaks that may eventually happen, the sentiment is positive which allows corporate earnings to remain in focus. This week brings earnings reports from a number of large cap tech names including MSFT, META, AAPL & AMZN. We also get the latest Fed rate decision on Wednesday and while it’s anticipated there will be no change, commentary on the path forward will be heavily scrutinized. The set-up is favorable in our opinion and as such, our S&P 500 year-end price target has been raised to 7,100 from 5,950 or roughly a 11% rise from last Friday’s (June 25th) close. As I have said the last few weeks, I view any pull-backs here as buying opportunities as we make our way through the back half of the year.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management. A look at our revised S&P 500 PT and earnings, are among the topics.
Have a great week!