US stocks may move up after June jobs data


AMENTALS will return to the forefront as companies begin to release second-quarter results this week. Expectations call for S&P 500 earnings growth to rise 1.6 per cent in the second quarter from a year ago, while quarterly revenue is forecast to increase 2.9 per cent from a year ago, according to Thomson Reuters data.

Dow component Alcoa will post results after the closing bell today, while JPMorgan Chase & Co and Wells Fargo are also set to report results later in the week.

Second-quarter revenue outlooks for S&P 500 companies – with three negative forecasts for every one that is positive – are among the most negative of the economic recovery, according to Thomson Reuters data.

On Wednesday, the Federal Reserve will release the minutes from its 18-19 June policy meeting. Those minutes are likely to attract heightened attention from Wall Street since they are coming out on the same day that Bernanke speaks to the National Bureau of Economic Research. On 22 May, Bernanke said the quantitative easing program would be slowed if economic growth met the Fed’s targets.

Investors interpreted that as an indication of an early exit, sparking a steep slide in stocks and a surge in US Treasury yields that prompted Goldman Sachs to close its recommendation that investors buy rate-sensitive names.

Stocks have stabilised after the recent decline. On Friday, the S&P 500 closed above its 50-day moving average for the first time since 1 June.