This past week, we saw a tremendous amount of red in the markets, with major US indices down between 1% and 3% on the back of Fitch downgrading US Bonds. This downgrade was a major shakeup for the market, resulting in many individual stocks plummeting. When you combine this with the fact that earnings were a bit of a mixed bag last week, few were shocked by the tremendous amounts of volatility we saw.
Aside from the Fitch downgrade, there weren’t many market-moving economic data releases last week. The only major upset was in the ADP employment report, with 324,000 jobs being added in July versus 175,000 expected. Additionally, we saw some serious swings in big tech names, like Apple and Amazon. Apple was down just over 7% week-over-week, whereas Amazon was up nearly 5%.
Although the Fed still has some time until the next interest rate decision, all eyes will still be on CPI this week, which will be released on Thursday. Last month, year-over-year CPI came in at 3.0%, and analysts are expecting 3.3% for this month. It will be interesting to see where CPI actually comes in, as it will undoubtedly weigh heavily on the Fed’s interest rate decision. In addition to CPI data, we’ll also get PPI data on Friday. While this isn’t as important to the Fed as the CPI, it’s certainly important to pay attention to it from a macroeconomic perspective!
This week, the Q2 earnings season begins to slow down. However, it’s not over yet; we’ve still got some very important companies reporting their earnings this week, like:
08/07 – KKR & Co. (KKR), Palantir Technologies (PLTR), Tyson Foods Inc. (TSN), and Skyworks Solutions (SWKS)
08/08 – Eli Lilly and Company (LLY), United Parcel Service (UPS), Zoetis Inc. (ZTS), Datadog (DDOG), GlobalFoundries (GFS), Rivian Automotive (RIVN)
08/09 – The Walt Disney Company (DIS), Honda Motor Company (HMC), The Trade Desk (TTD), Roblox Corporation (RBLX), Wynn Resorts Limited (WYNN), U-Haul Holding Company (UHAL/UHAL.B)
08/10 – Alibaba Group Holding (BABA), Brookfield Corporation (BN)
Quite possibly, the most followed earnings release of this week will be PLTR, a retail investor favorite. The stock has performed quite well since its last earnings report, so it will be interesting to see if the stock will be able to continue its run!
We’ll also get to hear from companies like RIVN and HMC. These automakers will be able to provide insightful commentary on how the new auto space is performing, as well as the EV market in particular.
Lastly, we’ll also hear from UPS, which is a great barometer for the overall economy. After all, goods have to be shipped to their end user, so what better way is there to gauge the economy than one of the largest logistics companies in the world?
Monitoring the market conditions this week.
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