The Wall Street Journal - 21.10.2019

THE WALL STREET JOURNAL. Monday, October 21, 2019 |B9

THE TICKER |Market events coming this week

At the same time, he said
U.S. stocks are still likely to
gain over the long haul—partly
because the Fed still has much
more room to cut interest
rates than other major central
banks have.
Mr. Knutzen has recently
raised his exposure to U.S.
small-capitalization companies
to above his fund’s benchmark
levels and raised his exposure

Continued from page B1

Monday

Earnings expected*
Estimate/YearAgo($)
Cadence Design Systems
0.51 /0.49
Celanese 2.51 /3.00
Halliburton 0.34 /0.50
Lennox International
3.41 /2.72
TD Ameritrade Holding
0.98 /0.92
Zions Bancorporation
1.08 /1.04

Tuesday

Existing home sales
Aug., previous 5.49 mil
Sept., expected 5.48 mil

Earnings expected*
Estimate/YearAgo($)
Lockheed Martin
5.02 /5.14
McDonald’s 2.21 /2.10
NextEra Energy
2.28 /2.18
Procter & Gamble
1.24 /1.12
Texas Instruments
1.42 /1.58
United Technologies
2.03 /1.93

Wednesday

Mort. bankers indexes
Purch., prev. down 4%

Refinan., prev. up 4%

EIA status report

Previouschangein stocksin

millionsof barrels

Crude oil up 9.3

Gasoline down 2.6

Distillates down 3.8

Earnings expected*

Estimate/YearAgo($)

Boeing 2.04 /3.58

Caterpillar 2.90 /2.86

Eli Lilly 1.39 /1.39

Microsoft 1.24 /1.14

PayPal 0.70 /0.58

Thermo Fisher Scientific

2.87 /2.62

Thursday

Short-selling reports

Ratio,daysof tradingvolumeof

currentposition,at Sep.30

NYSE 4.5

Nasdaq 4.5

EIA report: natural gas

Previouschangein stocksin

billionsof cubicfeet

up 104

Initial jobless claims

Previous 214,000

Expected 218,000

Durable-goods orders

Aug., prev. up 0.2%

Sept., exp. down 0.8%

New-home sales

Aug., previous 713,000

Sept., expected 710,000

Earnings expected*

Estimate/YearAgo($)

3M 2.49 /2.58

Amazon.com 4.59 /5.75

Comcast Class A

0.74 /0.65

Danaher 1.15 /1.10

Intel 1.23 /1.40

Visa Class A 1.43 /1.21

Friday

Univ. of Michigan

Consumer Sentiment

Index

Oct., prelim 96.0

Oct., final 96.0

Earnings expected*

Estimate/YearAgo($)

Charter Communications

Class A

1.66 /2.11

Illinois Tool Works

1.94 /1.90

Phillips 66

2.54 /3.10

V.F. Corporation

1.31 /1.35

Ventas 0.32 /0.28

Verizon 1.24 /1.22

• FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T INCLUDE EXTRAORDINARY ITEMS (LOSSES IN
  PARENTHESES)  ADJUSTED FOR STOCK SPLITNOTE: FORECASTS ARE FROM DOW JONES WEEKLY SURVEY OF
  ECONOMISTS McDonald’s is expected on Tuesday to announce earnings of $2.21 a share, up from $2.10 a year ago.

RICHARD B. LEVINE/ZUMA PRESS

to U.S. large-caps to equal the

benchmark.

“It’s a view that the U.S. is

the best-positioned economy

of all the developed world

economies,” he said. “It’s not

exactly scintillating growth,

but it’s much better than what

we expect from Europe and

Japan.”

While politics and trade

have prompted swings in re-

cent months, investors also re-

main focused on other key

drivers of markets. Those in-

clude earnings for companies

in the S&P 500, which are pro-

jected to post the biggest drop

since 2016 in the third quarter,

dulling some expectations for

stock-market returns.

About 150 S&P companies

will report results and conduct

earnings calls in each of the

next two weeks.

Bellwether companies in-

cluding Microsoft Corp., Ama-

zon.com Inc., Procter & Gam-

ble Co. and Boeing Co. are

among the companies that are

slated to report their results

this week.

Large, multinational compa-

nies have been heavily af-

fected by softening global

growth and trade uncertainty,

and rising correlations across

asset classes have fueled fears

that a reversal in momentum

could drag down a range of in-

vestments at the same time.

That trend played out late in

2018, another period when

sentiment was fragile and

news about trade policy and

interest rates punished stocks

around the world.

“In some ways, there’s liter-

ally nowhere to hide today,”

said Michael Parker, director

of research and head of strat-

egy for Asia-Pacific at Bern-

stein Research in Hong Kong.

Instead of getting caught up

in the gyrating political head-

lines, he said his firm recently

devised a quantitative strategy

that uses a variety of macro-

economic indicators to fore-

cast market returns.

The model suggests a favor-

able scenario for stocks in

Asia excluding Japan despite

the political uncertainty, he

said.

“While it would be profes-

sionally inadvisable to tell

anyone to turn off the news,

there’s other stuff going on

that doesn’t always show up in

the headlines,” Mr. Parker

said.

One such political concern

is the monthslong protests in

Hong Kong.

Weiqi Zhu, who runs an eq-

uity fund at Gao Zheng Asset

Management, said he sold all

of his positions in local Hong

Kong companies over the sum-

mer, including property devel-

opers and retailers, because of

concern over how the antigov-

ernment demonstrations and

the heightened geopolitical

risk with China will weigh spe-

cifically on those companies’

business models.

“The social unrest in the

long run is going to impact

these companies a lot,” said

Mr. Zhu, who has also been

holding higher-than-usual lev-

els of cash.

Many investors have turned

to haven investments and

hedges involving futures and

options in case volatility re-

turns.

Esty Dwek, head of global

market strategy at Natixis In-

vestment Managers, said she

favors gold and the Japanese

yen given the ever-changing

geopolitical backdrop.

“You’ve had to be ready to

adjust your positioning more

quickly than before,” she said.

“We’ve tried not to trade ev-

ery single development when

the underlying economic back-

drop is relatively supportive.”

—Ira Iosebashvili, Anna

Isaac and Amrith Ramkumar

contributed to this article.

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