What will drive the markets this week?
On Friday, the S&P 500 experienced a slight decline as bank and financial shares reported lower earnings during the start of the earnings season. Nevertheless, the three major U.S. stock indexes achieved substantial gains for the week.
In Europe, stock indexes remained relatively unchanged. The STOXX decreased by 0.11%, London’s FTSE 100 by 0.08%, and Germany’s DAX by 0.2%. Axfood, a Swedish food retailer, reported growth in retail sales for the second quarter despite a decrease in inflation, leading to an 8.1% increase in its shares.
Asia-Pacific markets saw an increase in stocks on Friday, driven by lower-than-expected inflation data from the U.S. This raised hopes of reduced inflation without negatively impacting the labor market.
The upcoming week marks a significant acceleration in the earnings season, as several major companies, including Bank of America, Morgan Stanley, Lockheed Martin, Tesla, Netflix, IBM, Goldman Sachs, Johnson & Johnson, and United Airlines, among others, will announce their quarterly results. These reports will provide valuable insights into the financial performance of these key players.
The U.S. Census Bureau will release retail sales data for June, offering an important update on consumer spending trends. Additionally, we can anticipate the latest reports on the housing market, which encompass building permits, housing starts, existing home sales for June, and the NAHB’s Housing Market Index, providing an indication of the industry’s sentiment.
The most recent inflation figures from the U.K., eurozone, and Japan will also become available, shedding light on price dynamics in these regions. These readings are crucial for understanding the broader economic landscape and its potential implications.
Events expected to move the markets this week
Monday, July 17
- Equity Lifestyle Properties Inc. (ELS) reports earnings
- New York Empire State Manufacturing Index (Jul)
Tuesday, July 18
- Bank of America (BAC), Morgan Stanley (MS), Novartis (NVS), Lockheed Martin (LMT), Prologis Inc. (PLD), The Charles Schwab Corporation (SCHW), PNC Financial Services (PNC), Bank of New York Mellon (BK), J.B. Hunt Transport Services (JBHT), Omnicom Group Inc. (OMC), Synchrony Financial (SYF), and Hasbro Inc. (HAS) report earnings
- U.S. Retail Sales (Jun)
- Industrial Production (Jun)
- Business Inventories (May)
- Retail Inventories (May)
- NAHB Housing Market Index (Jul)
Wednesday, July 19
- Tesla (TSLA), Netflix (NFLX), IBM (IBM), Goldman Sachs (GS), Elevance Health (ELV), U.S. Bancorp (USB), Crown Castle Inc. (CCI), Las Vegas Sands (LVS), Biogen Inc. (BIIB), Kinder Morgan (KMI), Baker Hughes Co. (BKR), Halliburton (HAL), Discover Financial Services (DFS), Equifax Inc. (EFX), Nasdaq Inc. (NDAQ), and United Airlines (UAL) report earnings
- Housing Starts (Jun)
- Building Permits (Jun)
- U.K. Inflation Rate (Jun)
- Euro Area Inflation Rate (Jun)
Thursday, July 20
- Taiwan Semiconductor Manufacturing Company (TSM), Johnson & Johnson (JNJ), Abbott Laboratories (ABT), SAP (SAP), Philip Morris International (PM), Intuitive Surgical Inc. (ISRG), Marsh & McLennan Cos. (MMC), CSX Corporation (CSX), Blackstone Inc. (BX), Freeport McMoran (FCX), Kenvue (KVUE), Truist Financial Corp. (TFC), Capital One Financial (COF), D.R. Horton (DHI), and The Travelers Companies (TRV), and Newmont Corp. (NEM) report earnings
- Philadelphia Fed Manufacturing Index (Jul)
- Conference Board Leading Index (Jun)
- Existing Home Sales (Jun)
- Japan Inflation Rate (Jun)
Friday, July 21
- American Express Co. (AXP), HDFC Bank Ltd. (HDB), The Progressive Corporation (PGR), Schlumberger (SLB), Roper Technologies Inc. (ROP), Regions Financial Corp. (RF), and Huntington Bancshares Inc. (HBAN) report earnings