This past week was yet another mixed bag of performance, as the S&P and Nasdaq were down 1.55% and 3.38%, respectively. Whereas the Dow and the Russell were up 0.77% and 3.59%, respectively. This shows that money is slowly rotating out of large caps and tech companies and into small caps as a rate cut is perceived to happen very soon, which would benefit small caps in a huge way. Unfortunately, we’re not out of the woods when it comes to volatility, as we have another huge week ahead of us!
Last week, we saw some great news in terms of economic data. To start things off, Q2 GDP came in at 2.8%, compared to an expected 2.1%—a huge, unexpected beat to the upside. We then saw PCE come in line with expectations, and consumer sentiment came in a touch higher than expected. The GDP beat is huge, as it signals to the market that despite higher interest rates, the economy is still growing quite faster than anticipated.
This week will be a very important week in terms of economic data. We start things off with consumer confidence and the JOLTS report on Tuesday, followed by the ADP employment report and the FOMC interest-rate decision on Wednesday. We then round out the week with the employment report and unemployment rate on Friday. All-in-all, this is going to be a huge week, as many are eager to hear what the Fed has to say about interest rates and where they seem to be going in the near future.
This week, we have some of the largest and most influential companies in the world reporting their earnings, such as:
07/29 – McDonald’s (MCD), Welltower (WELL), On Semiconductor (ON)
07/30 – Microsoft (MSFT), Procter & Gamble (PG), Merck (MRK), Advanced Micro Devices (AMD), Pfizer (PFE), S&P Global (SPGI), Stryker (SYK), Arista Networks (ANET), American Tower (AMT), BP (BP), Mondelez International (MDLZ), Starbucks (SBUX), Canadian Pacific Kansas City Limited (CP)
07/31 – Meta Platforms (META), Mastercard (MA), T-Mobile US (TMUS), QUALCOMM (QCOM), Arm Holdings (ARM), Lam Research (LRCX), Boeing (BA), KKR (KKR), Automatic Data Processing (ADP), Altria (MO), GSK (GSK), Trane Technologies (TT), Marriott International (MAR)
08/01 – Apple (AAPL), Amazon.com (AMZN), Toyota Motor (TM), Shell (SHEL), Intel (INTC), ConocoPhillips (COP), Vertex Pharmaceuticals (VRTX), Booking Holdings (BKNG), Regeneron Pharmaceuticals (REGN), Eaton (ETN), Anheuser Busch Inbev (BUD), Ferrari (RACE), The Cigna Group (CI)
08/02 – Berkshire Hathaway (BRK.A/BRK.B), Exxon Mobil (XOM), Chevron (CVX), Linde (LIN), Enbridge (ENB)
This week, everyone will be paying attention to the mega-cap tech companies reporting, like MSFT, META, AAPL, and AMZN. With these tech giants reporting their earnings, the market is bound to move one way or another. Everyone will be interested in hearing how the AI investments these companies have been making are paying off or will pay off in the future.
Monitoring the market conditions this week.
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