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Earnings Season Kicks Into Gear This Week

Stocks closed mixed yesterday as earnings season kicks into gear.

Earning season is already off to a great start. But the list of companies reporting earnings will only get longer in the coming weeks with 938 more companies reporting this week, another 1,235 next week, and then 1,331 the week after.

Traders will also be watching for any new developments regarding the U.S.-China trade talks. But with a U.S. trade delegation flying to Beijing next week, and then China coming to the U.S. the week after, most traders aren't expecting to hear of any breakthroughs for at least a few weeks.

But stocks look just fine in the meantime.

In other news, it will be interesting to see how much energy prices increase after the WH said they will be removing all sanction waivers on purchasing Iranian oil. The increase in oil prices is great for producers. But at a certain point, rising energy prices can become a drag on the economy. We're not there yet. But it's always important to remember that while rising prices are increased profits to some, they are increased costs to others.

Later today we'll get a look at retail sales via the Redbook numbers, housing data via the New Home Sales report, and manufacturing via the Richmond Fed Manufacturing Index.

And later in the week, we'll get a look at what the professional investors are doing in Wednesday's State Street Investors Confidence Index. Then Durable Goods Orders and Jobless Claims on Thursday. And our first look at Q1 GDP and Consumer Sentiment on Friday.

Should be a busy week.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research

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