Last week, we saw indices fall across the board, with the Dow down 2.05%, the S&P down 2.49%, the Nasdaq down 4.21%, and the Russell down a massive 6.85% on a week-over-week basis. This precipitous decline was driven by some worse than anticipated earnings out of companies like Amazon as well as some worse than anticipated economic data, which caused concern in the markets across the board. Unfortunately, we’re not out of the woods, as we have another important week ahead of us.
Last week, there were quite a few economic data releases, and most of them reported better-than-expected data. However, there was one outlier: the unemployment rate. Last month’s unemployment rate came in at 4.3%, as opposed to an expected 4.1%. When you combine this with earnings that were a bit softer than expected, you’ve got a recipe for a market pullback on your hands!
This week is relatively quiet in terms of economic data releases. However, there are still a couple that you might want to pay attention to. With last week’s spike in unemployment, it’ll be important to pay attention to consumer credit as well as last week’s initial jobless claim numbers. This is going to give us a better idea of how the consumer is faring, and it’ll also give us an inkling as to whether or not we are seeing the beginnings of a recession.
This week, we have some of the largest and most influential companies in the world reporting their earnings, such as:
08/05 – CSX Corporation (CSX), Palantir Technologies (PLTR), The Williams Companies (WMB), Realty Income Corp. (O), Simon Property Group (SPG)
08/06 – Caterpillar (CAT), Uber Technologies (UBER), Airbnb (ABNB), Zoetis (ZTS), Transdigm Group (TDG), Diageo (DEO), Marathon Petroleum (MPC)
08/07 – Novo Nordisk (NVO), Walt Disney Company (DIS), McKesson (MCK), Equinix (EQIX), CVS Health (CVS), Shopify (SHOP), Monster Beverage (MNST), Occidental Petroleum (OXY), HIlton Worldwide (HLT),
08/08 – Eli Lilly (LLY), Alibaba (BABA), Gilead Sciences (GILD), Brookfield (BN), Parker-Hannifin (PH), CRH PLC (CRH), The Trade Desk (TTD), Datadog (DDOG), Martin Marietta Materials (MLM)
This week, all eyes will be on the smaller tech companies, such as PLTR, UBER, ABNB, SHOP, and DDOG. Some of the largest companies in the world have reported some worse-than-anticipated numbers, so analysts and retail investors alike will certainly be interested in what these companies have to say!
Monitoring the market conditions this week.
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