It was another exciting week in the markets with the S&P500 ($SPX) advancing a little more than 0.50% by the close of trading on Friday, hitting new all-time highs for the fourth time in the last 10 days of market activity.  This pushes the stock index’s year-to-date (YTD) return into double digits for the first time in 2017 (YTD return= 10.44%). 

It’s worth noting that the NASDAQ is also sitting at new all-time highs having reached 5,932 during Thursday’s trading session.  The SPDR Select Sector Technology ETF ($XLK), which is often used as a proxy for the NASDAQ holdings, is up 18.84% for the year and has been a holding in our Sector Rotation model for the last two quarters.  These impressive YTD returns have mostly been on the back of the “FANG-MA” names (Facebook, Apple, Netflix, Google, Microsoft, and Amazon).  We will be watching Alphabet (formerly known as Google), Facebook and Amazon very closely this week as they are all set to announce Q2 earnings.  Each of the aforementioned securities have posted strong returns this year and will be important to a continued advance of the stock market

With such significant earnings reports this week, we could be set up for some volatile sessions, something that this market has gone an exceedingly long period of time without.  As always, we will continue to monitor the markets and provide timely commentary.

If you would like to learn more about how we can help you participate in the markets while striving to protect your assets in the event of a downturn, please attend one of our upcoming seminars or reach out to us directly.

Major Earnings for the Upcoming Week (tickers are listed with a “$” preceding them)

Monday:

Pre-Market – Cal-Maine Foods ($CALM), Halliburton ($HAL), Hasbro ($HAS), VF Corp ($VFC)

After Close – Alphabet ($GOOG / $GOOGL), Celanese ($CE)

Tuesday:

Pre-Market – Caterpillar ($CAT), Chubb Limited ($CB), General Motors ($GM), Coca-Cola ($KO), Eli Lilly ($LLY), McDonalds ($MCD)

After Close – Akamai Technologies ($AKAM), Amgen ($AMGN), Advanced Micro Devices ($AMD), Chipotle Mexican Grill ($CMG), Express Scripts ($ESRX), Panera ($PNRA), AT&T ($T), United Technologies ($UTX), Wynn Resorts and Casino ($WYNN)

Wednesday:

Pre-Market – Boeing ($BA), D.R. Horton ($DHI), Dish Network ($DISH), Ford ($F), Waste Management ($WM)

After Close – Buffalo Wild Wings ($BWLD), Facebook Inc. ($FB), F5 Networks ($FFIV), Gilead ($GILD), I-Max Inc. ($IMAX), O’Reilly Automotive ($ORLY)

Thursday:

Pre-Market – Celgene ($CELG), ConocoPhillips ($COP), Dunkin’ Brands ($DNKN), Southwest Airlines ($LUV)

After Close – Amazon ($AMZN), Electronic Arts ($EA), Intel ($INTC), Starbucks Inc. ($SBUX)

Friday:

Pre-Market – American Airlines Group ($AAL), Chevron ($CVX), Merck ($MRK), Exxon Mobil ($XOM)

Economic Releases (7/10– 7/14):

Monday:

8:45 am CT – PMI Composite Flash

9:00 am CT – Existing Home Sales

*FOMC Meeting begins

Tuesday:

6:00 am CT – Producer’s Price Index,

7:55 am CT – Redbook

8:00 am CT- FHFA House Price Index, Case-Shiller House Price Index

9:00 am CT – Consumer Confidence

Wednesday:

6:00 am CT – MBA Mortgage Applications

9:00 am CT – New Home Sales

9:30 am CT –Oil Inventories

1:00 pm CT – FOMC Meeting Announcement

Thursday:

7:30 am CT – Weekly Jobless Claims

7:30 am CT – Producer Price Index (PPI)

9:30 am CT – Natural Gas Inventories

3:30 pm CT – Fed Balance Sheet (Yield curve impact)

Friday:

7:30 am CT – Consumer Price Index (CPI)

7:30 am CT – GDP

9:00 am CT – University of Michigan Consumer Sentiment

12:00 pm CT – Baker Hughes Rig Count

Disclaimers and Disclosures

Investing Risks:  The risk of loss from investingin securities (stocks, ETFs, mutual funds, etc.), bonds, options, futures, and forex or related products, can be substantial.  Investors must consider all relevant risk factors, including their own personal financial situation, before investing.

Investments in bonds and fixed income products are subject to various risks (including liquidity, interest rate, financial, and inflation risks) and special tax liabilities.  

Options Risks:  Options involve risk and are not suitable for everyone.  Options Trading privileges are granted at the account level by your custodial broker and are subject to review and approval.  Not all account holderswill qualify.  Before trading options, a person must receive a copy of Characteristics and Risks of Standardized Options. Individuals should not enter into options transactions until they have read and understood the risk disclosure document, Characteristics and Risks of Standardized Options, which can be found on our website www.mscm.net.  Copies may be obtained by contacting your broker or the Options Clearing Corporation.

Spreads, Straddles, Strangles, and other multi-leg option strategies can entail substantial transaction costs, including multiple commissions, which may impact any potential return.  These are advance option strategies and often involve greater risk, and more complex risk than basic options trades.  

Portfolio Margin:  A portfolio margin account generally permits greater leverage in an account, and greater leverage has the potential to create greater losses in the event of adverse market movements.  Portfolio Margin, or Risk-Based Margin, is a margin methodology that sets margin requirements for an account based on the greatest projected net loss of all positions in a “security class” or “product group” as determined by the custodial brokers theoretical pricing model using multiple pricing scenarios.  These pricing scenarios are designed to measure the theoretical loss of the positions given changes in both the underlying price and implied volatility inputs to the model.  Clients participating in portfolio margin will be required to sign an agreement acknowledging that their security positions and property in the portfolio margin account will be subject to the client protection provisions of Rule 15c-3 under the Securities Exchange Act of 1934 and the Securities Investor Protection Act.  Clients will be subject to minimum equity requirements by not only the custodial broker but also the managing firm.

General Disclosures:  Any strategies discussed in this presentation, including examples using actual securities and price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement, recommendation, or solicitation to buy or sell specific securities or strategies.

Investors should carefully consider the investment objectives, risks, charges, and expenses before investing in any investment product.  To obtain a prospectus containing this type of information as well as other important information, contact your custodial broker.  Please read the prospectus carefully before investing.  

You should discuss any/all implications of investing in such products with your custodial broker, financial adviser/advisor, and/or tax advisor.  Past performance is not indicative of future results.  

Third Party Information:  This presentation may utilize or refer to third party data.  In such a case, let it be known that MSCM, LLC. does not control, nor has it developed the content being referred to, and does not make any warranty, express or implied, as to the accuracy, usefulness, timeliness or even the continued availability or existence of said information/content created or maintained by others.  Opinions expressed by others are not necessarily those of MSCM, LLC., nor does MSCM, LLC. endorse, warrant, or guarantee products, services or information described or offered by such firms.