Following the stock market fall at the end of the previous week, things were off to a shaky start on Monday with the futures market for major American indices down between 5-6% prior to market open. This panic was fueled by a 12%+ fall in the Nikkei, Japan’s main stock market index. This fall was due, in part, to traders beginning to unwind the “Yen Carry” trade that has become incredibly popular over the past couple of years. Despite the panic prior to market open on Monday, the major American indices regained most of their losses by the end of the week.
Last week was relatively quiet in terms of economic data releases, which was great, as this allowed the market some room to breathe and regain the losses it suffered on Monday. However, this week will not be nearly as quiet as last week was, both in terms of economic data and earnings releases!
This week is going to be jam-packed in terms of economic data releases, starting with the release of PPI data on Tuesday, followed by CPI data on Wednesday, and retail sales data on Thursday. Finally, we round things out on Friday with consumer sentiment, housing starts, building permits, and the home builder confidence index. It will be particularly important to pay attention to the inflation data this week, as that’s what the Fed is looking at, which will of course inform their decision on interest rates.
This week, earnings season continues, as we get to hear from some incredibly influential companies, such as:
08/13 – Home Depot (HD), Nu Holdings (NU), Sea Limited (SE), Flutter Entertainment (FLUT), On Holding (ONON), Tencent Music Entertainment Group (TME)
08/14 – Cisco Systems (CSCO), UBS AG (UBS), Cardinal Health (CAH), Performance Food Group Company (PFGC)
08/15 – Walmart (WMT), Alibaba Group (BABA), Applied Materials (AMAT), Deere & Company (DE), Ross Stores (ROST), JD.com (JD), Amcor (AMCR)
Everyone will be paying attention to the retail giants HD and WMT this week, as they will help give everyone an idea of how the consumer is doing. ONON and ROST should also give us a good idea of how the average consumer is faring, and lastly, JD will be very important for judging the economic wellbeing of the average Chinese citizen.
Monitoring the market conditions this week.
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