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Earnings Outpace Lagging Predictions: 84% Exceed
Fannie Mae released its October 2019 Economic and Housing outlook recently showing that residential fixed investment and continued strong consumer spending are expected to help counteract weakness in business fixed investment. Fannie Mae sees full-year Gross Domestic Product at a solid rate of 2.2% for 2019. The housing market is expected to be a source of strength in the foreseeable future. In addition, Fannie Mae went on to say that home prices appear likely to maintain a positive growth trajectory due in part to persistently low mortgage rates and evidence of declining inventory.
Over the weekend, there were positive trade headlines out of China along with President Trump's comments on Friday that he feels a deal can be signed in Chile next month. Additionally, earnings season has been a positive surprise for US stocks. The S&P 500 company earnings were expected to decline by 3.1% compared to last year but of the 73 companies that have reported so far this season, 84% have beaten estimates, reports Reuters. This week, some big-name companies will be reporting and the numbers could impact the markets.
There were no economic reports due for release today and the rest of the week's calendar is on the light side. ... more

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