Every beginning of a quarter corporations report their financial results from the previous quarter. These sales and earnings establish the successes and failures and are like a report card for companies. It is a short term look at the corporations’ efforts, and though it is only for one quarter, investors generally react to the numbers.
So far that has not been the case this quarter. Even though we are entering the heart of the reporting period, where numbers from many companies are reported, the financial news has turned toward trade talks as the driver of stock prices.
In the long run earnings matter and it is understandable that the short term quarterly numbers are temporarily ignored in favor of the trade talks. Trade is important to the bottom line for many companies long term and investors rarely focus on unimportant matters when it comes to their money.
Of course they won’t ignore the quarterly results for very long.