Today’s little bit of weakness was just a bit of profit-taking. Today’s little dip was also quickly bought by investors.

The Fed’s Beige Book helped this afternoon as well with the latest report showing no real reasons for a rate hike. It shows the economy is continuing to modestly expand. Employment growth is also moderate and wage pressure remains moderate. Inflationary pressures and price pressures are slight. The next meeting is July 26 to 27.

Dow Closes At Record High

The Dow Jones today closed at 18,372.12 up 24.45 to a new record high close. The S&P closed flat and the NASDAQ was down slightly but still above 5000 at 5005.73.

This is the first day with the market taking a break from the present rally.

Financials Quarterly Earnings Up Next

Starting on Thursday and continuing into Friday we will get a better picture of how the financials are doing. JP Morgan Chase reports earnings tomorrow before the markets open. Friday we get to see quarterly numbers from Wells Fargo, U.S. Bancorp and Citigroup. This should gives us a very clear picture.

Delta Air Lines Quarterly Earnings

Delta Air Lines reports earnings Thursday before the open as well. The airline sector in general has been soft this past spring. The outlook for Delta earnings are high coming in at $1.48 per share this quarter versus $1.27 for the same quarter last year. Revenue is expected to be lower by $200 million to $10.5 billion so this is bound to be an interesting report tomorrow morning. It will show us if the consumer is spending on travel.

YUM Brands Earnings

YUM’s earnings came in missing on revenue estimates.  Previous year for this quarter they earned 69 cents a share. Estimates had earnings at 74 cents and YUM managed to bring in 75 cents for the quarter. Revenue though failed to meet expectations and came in at $3.01 billion. YUM China division saw flat sales but the company reported the new division was off to a good start. Whatever that means financially, is not entirely clear.

Overall the results from YUM Brands points to the same old, same old, consumer. It appears consumers are still doing “ok” but they are definitely not overspending. The YUM numbers point to another quarter of possibly lackluster consumer spending.

Oil Prices Up

Part of yesterday’s rally was the big jump in oil prices. Today part of the weakness was the drop in oil prices down 3.61% to $45.11 (WTI) by the close today.

Overbought Signals

The market continues to signal that it is overbought. It will take more than a single day of slight weakness to work out the overbought environment stocks find themselves in.

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