The past week saw a huge rally with all of the major indices ending the week up 1-2%. This was fueled by some better-than-expected earnings, as well as continually down-trending oil prices. Oil prices in particular denote some stability in the oil market, and more importantly, some relief at the pump for consumers.
Last week we saw data confirming the housing market slowdown, with both housing starts and existing home sales missing expectations. We also saw some well-received earnings releases from both NFLX, AXP, and TSLA, which helped fuel the rally. However, some disappointing numbers from SNAP, tapered the rally toward the end of the week, sending advertising players, like META, GOOG, and TTD down.
We have some important catalysts coming up next week. On Wednesday, the Fed funds target rate will be announced followed by a press conference with Fed Chair Jerome Powell. In this conference, he will undoubtedly provide some insight into how the Fed sees the economy.
However, all eyes are focused on the release of Q2’s first GDP estimate on Thursday. A decline in GDP for Q2 will mean that we’ve officially entered a recession. If we are, in fact, in a recession, markets will certainly see some incredible volatility.
Additionally, we’ve got some very important earnings releases this week:
07/26 – Microsoft (MSFT), Google (GOOG), Visa (V), Coca-Cola Company (KO), McDonald’s Corporation (MCD), General Motors (GM), United Parcel Service (UPS), Texas Instruments (TXN), Chipotle Mexican Grill (CMG)
07/27 – Meta Platforms (META), Qualcomm (QCOM), Boeing (BA), Ford Motor Company (F) Shopify (SHOP)
07/28 – Apple (AAPL), Amazon (AMXN), Mastercard (MA), Intel Corporation (INTC), Canadian Pacific Railway (CP)
07/29 – Exxon Mobil Corp (XOM), Procter & Gamble (PG), Colgate-Palmolive Company (CL)
As we wade deeper into earnings season, we’ve got another week filled with some of the most important companies in the stock market reporting earnings. The most prominent names in big tech, like MSFT, GOOG, META, AAPL, SHOP, and AMZN will be reporting, which will likely move the indices in a huge way.
Chip manufacturers like QCOM, INTC, and TXN will give us some insight into the semiconductor market, which should provide clarity on the supply chain issues in related markets, such as computer parts, and vehicles.
Lastly, consumer companies, like KO, MCD, GM, F, UPS, CMG, V, MA, CP, PG, and CL will be reporting. Each company will be able to give insight on their own respective market. Companies like Visa, Mastercard, Canadian Pacific, and UPS will be able to give helpful insight into the consumer as a whole, as they are deeply rooted in almost every sector.
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