What will drive the markets this week?
Global stocks closed lower last week, with US markets facing pressure as investors reckoned the impact of the rising delta variant of Covid-19 on an economic recovery that was just picking pace. Economic growth appears to have slowed down in the late second quarter, and companies reporting earnings are telling similar tales.
About 59% of the companies in the S&P 500 have reported second-quarter earnings results to date, with 88% of them having actual earnings per share (EPS) above estimates.
This week, nearly one-third of companies in the Russell 3000 will report results, including widely held companies like Uber, DraftKings, Marriott International, and Kraft Heinz. Hundreds of small-to-mid-cap companies across all sectors also report results. Those smaller public companies are very sensitive to changes in the economic temperature, and investors will pay attention to their guidance for the rest of the year.
Investors will also parse economic data from across the world, including manufacturing and purchasing managers surveys from the U.S., the EU, and the U.K. for July which are due for release on Monday. The U.S. nonfarm payrolls are due for release on Friday, as well as unemployment rate figures from Canada.
Monday, August 2:
- Market Holiday for the Toronto Stock Exchange (TSX)
- German Retail Sales (June).
- Italian Manufacturing PMI (July).
- French Manufacturing PMI (July).
- German Manufacturing PMI (July).
- Eurozone Manufacturing PMI (July).
- U.K. Manufacturing PMI (July).
- U.S. Manufacturing PMI (July).
- U.S. Institute for Supply Management (ISM) Manufacturing PMI (July).
- Japanese Tokyo Core CPI (July).
Tuesday, August 3:
- Alibaba Group Holdings Reports Earnings.
- Marriott International Reports Earnings.
- Brazilian Industrial Production (June).
- Chinese Caixin Services PMI (July).
- Japanese Services PMI (July).
Wednesday, August 4:
- MGM Resorts International, Uber Technologies Inc., Roku Inc., Kraft Heinz, and Royal Caribbean Cruises Ltd. Report Earnings.
- Italian Services PMI (July).
- French Services PMI (July).
- German Services PMI (July).
- U.K. Services PMI (July).
- U.S. Services PMI (July).
- U.S. ADP Nonfarm Employment Change (July).
- U.S. ISM Non-Manufacturing PMI (July)
- Brazilian Central Bank Interest Rate Decision.
Thursday, August 5:
- Virgin Galactic Corp., Square Inc., and Moderna Inc. Report Earnings.
- German Factory Orders (June).
- U.K. Construction PMI (July).
- Bank of England Interest Rate Decision.
- U.S. Trade Balance (June).
- Japanese Household Spending (June).
Friday, August 6:
- DraftKings Reports Earnings.
- Indian Central Bank Interest Rate Decision.
- German Industrial Production (June)
- U.S. Nonfarm Payrolls (July).
- U.S. Unemployment Rate (July).
- Canadian Unemployment Rate (July).