Last week, the downtrend continued, as the major indices were down between 0.75% and 1.75% week-over-week. This was caused by a tremendous upset in ADP employment metrics. However, given the fact that jobless claims and job openings came in roughly in line with expectations, the markets were able to recover some of their losses.
As we mentioned in the previous section, the piece of information revealed last week that moved the markets the most was ADP employment data. Analysts were expecting 220,000 new jobs for the month of June. However, the actual metric came in at 497,000, missing estimates by more than twofold. This, of course, led Wall Street to believe that other employment metrics being released later in the week would miss massively as well. This, of course, would cause the Fed to increase rates again, without question.
This week, we have some rather important information being released. The most important of which are CPI on Wednesday, and PPI on Thursday. However, we’ll also have consumer credit data being released on Monday, which will also be important to pay attention to. All of these metrics will help us gauge how consumers and businesses are faring and whether or not they are still experiencing widespread inflation. When you combine this with the companies that are reporting earnings this week, we’ve got a recipe for an interesting week!
We will see Q2 earnings season begin toward the end of this week, as the banks kick things off. Some of the most important companies reporting their earnings this week are:
07/13 – Pepsico (PEP), Cintas Corporation (CTAS), Fastenal Company (FAST), Delta Air Lines (DAL), ConAgra Brands (CAG)
07/14 – UnitedHealth Group (UNH), JP Morgan Chase (JPM), Wells Fargo & Company (WFC), BlackRock (BLK), Citigroup (C), State Street Corporation (STT)
We’ll get to hear from PEP and CAG, who will give commentary on the state of consumer packaged goods. This will give us a good idea of how the consumer is faring, and where they are spending their money.
As we mentioned before, we’ll also begin to hear from the banks, JPM, WFC, BLK, C, and STT. They will more than likely provide commentary on the recent banking dilemmas the country has been facing, as well as the state of consumer finances.
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