Global equities are blasting higher as the bulls have everything going their way. The Federal Reserve looks to be on track for a July rate cut. The G20 meeting saw a thawing of relations between presidents Donald Trump and Xi Jinping, opening the door to a possible trade deal between the United States and China.
It’s not a perfect situation. Global manufacturing activity indices are rolling over. Hiring has slowed here in the United States. And Treasury bonds are rallying hard, normally a sign of worry, as long-term interest rates fall.
But for now, the bulls could care less: The major risk events that were in play have been resolved in a positive way. And that’s powering a surge to new record highs for the S&P 500 as it exits a three-month consolidation range. These five stocks are leading the way:
Stocks to Buy: Apple (AAPL)
Apple (NASDAQ:AAPL) shares are breaking up and away from resistance near the $200-a-share level as investors look past the announced departure of design guru Jony Ive towards evidence of nascent self-driving car activity with the acquisition of Drive.AI.
Of course, let’s not forget we are just two months away from the unveiling of this year’s new iPhone 11.
The company will next report results on July 30 after the close. Analysts are looking for earnings of $2.11 per share on revenues of $53.5 billion. When the company last reported on April 30, earnings of $2.46 beat estimates by 10 cents on a 5.1% decline in revenues.
Amazon (NASDAQ:AMZN) shares are also breaking up and out of a three-month consolidation range after finding support near its 50-day moving average. With worry about possible regulatory action calming down, investors are instead looking forward to Prime Day on July 15 — which is set to run for 48 hours for the first time ever.
The company will next report results on July 25 after the close. Analysts are looking for earnings of $5.51 per share on $62.5 billion worth of revenues. When the company last reported on April 25, earnings of $7.09 beat estimates by $2.43 on a 17% rise in revenues.
Citigroup (NYSE:C) shares are breaking up and out of a three-month pennant formation, closing in on resistance from prior highs near $74 and setting the stage for a run at the prior record near $78 set back in January 2018. A return to that level would be worth a gain of more than 10% from here.
The company will next report results on July 15 before the bell. Analysts are looking for earnings of $1.86 per share on revenues of $18.8 billion. When the company last reported on April 15, earnings of $1.87 beat estimates by eight cents on a 1.6% decline in revenues.
JPMorgan Chase (JPM)
Shares of JPMorgan Chase (NYSE:JPM) are breaking up and out of a two-month consolidation range as it make another run at overhead resistance near $117.50 that has been in play for two years. The stock, like other large bank names, has been benefiting from the recent completion of the Fed’s latest stress tests — which cleared the way for more capital return to shareholders via higher dividends and share repurchases.
The company will next report results on July 16 before the bell. Analysts are looking for earnings of $2.53 per share on revenues of $28.8 billion. When the company last reported on April 12, earnings of $2.65 beat estimates by 30 cents on a 4.4% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.