The economic calendar is light but includes some home sales data and the (old news) Q2 GDP first estimates. Fed speakers will be on the sidelines for the pre-meeting quiet period. Earnings reports remain the most important fresh data for both traders and investors. And of course, there is always the chance of a tweet or two.

In quiet times the punditry loves to look at the markets through the prism of a bull-bear debate. I am seeing some new takes on both sides, but the most colorful is the question:

Are you part of the “Dumb Money?”

Last Week Recap

In last week’s installment of WTWA, I asked how much global economic weakness was affecting corporate earnings. We still don’t have a definitive answer to that question, but it certainly was a hot topic. FactSet’s John Butters reports that earnings are down -1.9% year-over-year but revenues are up 3.8%. This raises concerns about declining net profit margins, a long-time market worry.

Stay tuned!

The Story in One Chart

I always start my personal review of the week by looking at a great chart. This week I am featuring Jill Mislinski’s version, which combines a lot of information in one picture. The full article also includes several other interesting takes on price movement.

The market declined 1.2%. The chart looks choppy, but the trading range was only 1.5%. Those watching closely were treated to breathless media commentary about moves of less than 1%. Friday’s trading was influenced by a clarification (walking back?) of NY Fed President John Williams, whose need to “act quickly” comment was clarified as an inference from academic research, not a hint of policy actions. My weekly Quant Corner translates this into a volatility calculation which you can compare both to VIX and to past readings.

Noteworthy

The Visual Capitalist looks at how four generations of retail investors differ in their perceptions.