What will drive the markets this week?
During the previous week, Wall Street’s primary indexes experienced a decline in a volatile session. Investors carefully examined a U.S. jobs report that revealed slower growth than expected, while also anticipating upcoming economic data and corporate earnings in the following weeks. In June, the United States added the fewest jobs in two and a half years, although robust wage growth indicated a labor market that remained tight.
European shares managed to achieve modest gains, as concerns regarding interest rate hikes by the Federal Reserve were alleviated by data suggesting a slowdown in U.S. job growth. However, the main STOXX 600 index recorded its poorest weekly performance in nearly four months.
Asian markets, especially Hong Kong’s Hang Seng index, experienced notable losses following the release of minutes from the U.S. Federal Reserve, which indicated a divided stance on pausing rate hikes in June and predicted a more gradual approach to future hikes.
As for this week, the earnings season commences with reports from some of the world’s largest banks and financial institutions, including JPMorgan Chase, Wells Fargo, Citigroup, and BlackRock. Additionally, we can anticipate results from PepsiCo, Delta Air Lines, UnitedHealth Group, and others.
The most recent inflation data will be released with the June Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday. To wrap up the week, on Friday, the University of Michigan will report the preliminary reading of its Consumer Sentiment Index (MCSI) for July, providing a timely update on consumer confidence.
Events expected to move the markets this week
Monday, July 10
- WD-40 Company (WDFC) and PriceSmart Inc. (PSMT) report earnings
- Wholesale Inventories (May)
- Consumer Inflation Expectations (Jun)
- Used Car Prices (Jun)
Tuesday, July 11
- NFIB Business Optimism Index (Jun)
- IBD/TIPP Economic Optimism Index (Jul)
- Euro Area ZEW Economic Sentiment Index (Jul)
Wednesday, July 12
- Washington Federal Inc. (WAFD), Winmark Corp. (WINA), and MillerKnoll Inc. (MLKN) report earnings
- Consumer Price Index (CPI) Inflation (Jun)
- Fed Beige Book Release
- China Trade Balance (Jun)
Thursday, July 13
- PepsiCo. (PEP), Cintas Corp. (CTAS), Fastenal Company (FAST), Delta Air Lines (DAL), and ConAgra Brands Inc. (CAG) report earnings
- Producer Price Index (PPI) Inflation (Jun)
- U.K. Gross Domestic Product - MoM Rate (May)
Friday, July 14
- UnitedHealth Group (UNH), JPMorgan Chase (JPM), Wells Fargo & Company (WFC), BlackRock (BK), Citigroup (C), State Street Corporation (STT), and Ericsson (ERIC) report earnings
- University of Michigan Consumer Sentiment Index - Preliminary Reading (Jul)