Earnings season is now underway with some heavyweights already reporting their numbers. We're going to hear from a number of multi-billion market cap companies this morning and then after the bell we're going to hear from one of the FANG stocks as Netflix posts its numbers. IBM will post its numbers as well. These are highly visible companies that could help to set the near term tone for the overall market.

CTAS comes through as expected

In my ChartWatcher's article over the weekend I featured two stocks that I felt would report solid numbers that could lead to higher prices. In case you missed the article, here is a link:

https://stockcharts.com/articles/chartwatchers/2019/07/two-stocks-setting-up-to-report-blowout-earnings-next-week.html

One of the stocks discussed was Cintas Corporation (CTAS), a $25 billion market cap company, and as expected they came through with strong results with the stock rising by almost 6% after the bell last night. It just goes to show you that the company's relative strength was a predictor of a solid quarter which is exactly what happened.

The other stock discussed was Danaher (DHR), a $100 billion market cap company, that will report its earnings before the bell this Thursday. There's never any guarantees that a stock will rise (or fall) once its posted its numbers but the chart is showing that Wall Street has high expectations and we'll soon see if they are correct.

At your service,

John Hopkins
EarningsBeats