Daily Markets: Earnings, Fed, and 2Q GDP Create Crucial Week for Stocks

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Today’s Big Picture

Asia-Pacific equity indexes ended in the present day’s session down throughout the board, besides for South Korea’s KOSPI, up 0.44% on sturdy Q2 earnings from automaker Hyundai Motor. Australia’s ASX All Ordinaries and Taiwan’s TAIEX ended the day near flat, down solely 0.08% and 0.09%, Hong Kong’s Hang Seng declined 0.22%, India’s Sensex fell 0.55%, China’s Shanghai Composite dropped 0.60%. Japan’s Nikkei led the best way, down 0.77% on the day. By mid-day buying and selling, main European equity indices are barely up throughout the board and US futures level to a constructive open later this morning.

We begin a really busy week for equity markets on a relatively quiet be aware, however make no mistake, the virtually 900 company earnings reviews this week, the Fed’s July financial coverage assembly, and the primary onerous have a look at 2Q 2022 GDP imply now we have a vital week forward. The positive line between rising rates of interest to battle inflation vs. placing the U.S. financial system right into a recession and impacting earnings expectations for the again half of 2022 will probably be examined, with the end result more likely to closely affect how shares finish the month of July. 

Data Download

International Economy

We noticed the discharge of quite a few ifo metrics in the present day protecting Germany together with ifo Business Expectations, Ifo Business Climate, and ifo Current Assessment for July. All got here in decrease than expectations, which had been already marked down from the earlier releases. July Business Climate was 88.6, which we final noticed in June of 2020. According to analysis home ifo Institute “Germany is on the cusp of a recession.”

Domestic Economy

We have a really skinny financial calendar in the present day, with the June studying for the Chicago Fed National Activity Index revealed at 8:30 AM ET adopted by the July Dallas Fed Manufacturing Index at 10:30 AM ET.

Markets

Friday noticed markets retreat barely from the general bullishness of the week because the Dow dropped 0.43%, the S&P 500 fell 0.93%, the Russell 2000 declined 1.62% and the Nasdaq Composite gave again 1.87%. Markets returned to a reasonably classical defensive stance as Consumer Staples, Utilities and Real Estate had been the one constructive sectors on the day. Communication Services took the most important hit, down virtually 3.50%, and was pushed by Verizon and Meta, which mixed to contribute to over half of the day’s drawdown. 

Here’s how the key market indicators stack up year-to-date:

  • Dow Jones Industrial Average: -12.22%
  • S&P 500: -16.88%
  • Nasdaq Composite: -24.36% 
  • Russell 2000: -19.53%
  • Bitcoin (BTC-USD): -52.83%
  • Ether (ETH-USD): -57.87%

Stocks to Watch

Before buying and selling kicks off for U.S.-listed equities, Lakeland Financial (LKFN)Philps (PHG), and Squarespace (SQSP) are among the many firms anticipated to report their newest quarterly outcomes.

A union representing practically 2,500 workers at three Boeing (BA) protection places within the St. Louis space mentioned employees rejected the corporate’s protection contract provide and will strike on the places beginning August 1.

Toyota Motor (TM) has canceled some orders of the Harrier sports activities utility automobile because of manufacturing disruption brought on by the COVID-19 lockdown in Shanghai.

T-Mobile US (TMUS) agreed to pay $350 million and spend an extra $150 million to improve its information safety to settle litigation over a 2021 cyberattack that compromised data belonging to ~76.5 million folks.

Congress appears to vote on the CHIPS Act that would offer ~$54 billion to spice up U.S. chip manufacturing earlier than its August break. Companies broadly anticipated to profit from the invoice are Intel (INTC), Applied Materials (AMAT), Lam Research (LRCX), and others.

Intel and MediaTek introduced a strategic partnership for manufacturing chips utilizing Intel Foundry Services’ superior course of applied sciences.

Following two weeks of coronavirus associated closures, casinos in Macau have re-opened. On Saturday, Macau reported 5 circumstances of Covid-19, in contrast with 146 circumstances on the peak of the outbreak. Companies poised to maneuver on this information embody Las Vegas Sands (LVS), MGM Resorts (MGM), and Wynn Resorts (WYNN).

The Wall Street Journal reports Tesla (TSLA) is attempting to faucet into public funding to construct electric-vehicle chargers in a transfer to open a few of its U.S. Supercharger community to EVs made by different producers. 

IPOs

As of now, no IPOs are slated to be priced this week. Readers trying to dig extra into the upcoming IPO calendar ought to go to Nasdaq’s Latest & Upcoming IPOs web page.

After Today’s Market Close

Alexandria RE (ARE), Calix Networks (CALX), Celestica (CLS), Crane (CR), F5 Networks (FFIV), Logitech International (LOGI), NXP Semiconductor (NXPI), and Whirlpool (WHR) will probably be among the many firms reporting their quarterly outcomes after equities cease buying and selling in the present day. Those wanting for extra on which firms are reporting when, head on over to Nasdaq’s Earnings Calendar. 

On the Horizon

Tuesday, July 26

  • US: S&P Housing Price Index – May
  • US: New Home Sales – June

Wednesday, July 27

  • China: Industrial Profit – June
  • Germany: GfK German Consumer Climate – August
  • US: Weekly MBA Mortgage Applications
  • US: Durable Orders – June 
  • US: Retail Inventories (Ex-Auto) – June
  • US: Pending Home Sales – June 
  • US: Weekly EIA Crude Oil Inventories 
  • US: Federal Reserve Monetary Policy Statement 

 Thursday, July 28

  • France: PPI – June
  • Eurozone: Business and Consumer Survey, Consumer Confidence, Consumer Inflation Expectations – July
  • US: Weekly Initial & Continuing Jobless Claims
  • US: PCE Prices, GDP – 2Q 2022 
  • US: Weekly EIA Natural Gas Inventories

Friday, July 29

  • Japan: Tokyo Core CPI, Household Confidence – July
  • Japan: Unemployment Rate, Retail Sales – June
  • France, Germany, Italy, Spain: 2Q 2022 GDP
  • Eurozone: CPI – July 
  • US: Personal Consumption & Spending, PCE Price Index – June
  • US: Michigan Consumer Sentiment Index – July 

Thought for the Day

“While we wait for life, life passes.” ~ Seneca

Disclosures

The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.



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