What will drive the markets this week?
On Friday, Wall Street closed higher with the S&P 500 and Dow Jones Industrial Average reaching intraday record highs, driven by expectations that the U.S. Federal Reserve will cut interest rates in September. Despite this optimism, major banks experienced mixed results, with their stocks falling. The shooting of former President Donald Trump on Saturday, as he campaigns for a return to the White House, impacted global markets. The incident improved his re-election chances, which affected the Treasury yield curve and boosted stock futures early on. For the week, the S&P 500 increased by 0.9%, the Nasdaq by 0.2%, and the Dow by 1.6%.
European shares also rose on Friday, marking their second consecutive weekly gain. This was attributed to positive earnings and global investor optimism about a potential September rate cut by the Federal Reserve. The pan-European STOXX 600 index closed up nearly 0.9%, and the eurozone blue-chip gauge advanced 1.3%, reaching its highest intraday levels in over a month.
Federal Reserve Chair Jerome Powell will deliver a speech on Monday, with several other Fed officials scheduled to make remarks throughout the week.
Bank earnings reports continue this week, featuring Goldman Sachs (GS), BlackRock (BLK), Bank of America (BAC), Morgan Stanley (MS), and American Express (AXP). Additionally, investors will receive financial updates from Taiwan Semiconductor Manufacturing (TSMC), Netflix (NFLX), and UnitedHealth (UNH).
Republican presidential candidate Donald Trump is set to speak at the Republican National Convention this week.
Amazon (AMZN) will also hold its Prime Day two-day sale.
Events expected to move the markets this week
Monday, July 15
- Empire State manufacturing index (July)
- Republican National Convention opens
- Federal Reserve Chair Jerome Powell and San Francisco Fed President Mary C. Daly deliver remarks
- Goldman Sachs, BlackRock, and Servis1st Bancshares (SFBS) report earnings
Tuesday, July 16
- Amazon Prime Day begins
- Republican National Convention continues
- Retail sales (June)
- Business inventories (May)
- Import/export prices (June)
- Housing market index (July)
- UnitedHealth, Bank of America, Morgan Stanley, Charles Schwab (SCHW), PNC Financial (PNC), State Street (STT), and J.B. Hunt Transport (JBHT) report earnings
- Federal Reserve Gov. Adriana Kugler delivers remarks
Wednesday, July 17
- Amazon Prime Day concludes
- Republican National Convention continues
- Housing starts (June)
- Industrial production and capacity utilization (June)
- Federal Reserve Beige Book
- Johnson & Johnson (JNJ), US Bancorp (USB), Kinder Morgan (KMI), and Discover Financial Services (DFS), report earnings
Thursday, July 18
- Jobless claims (Week ending July 13)
- U.S. leading indicators (June)
- Philadelphia Fed manufacturing index (June)
- TSMC, Netflix, Novartis (NVS), Abbott (ABT), United Airlines (UAL), and Intuitive Surgical (ISRG) report earnings
- Republican National Convention concludes with remarks from Donald Trump
- San Francisco Fed President Daly, Dallas Fed President Lorie Logan and Federal Reserve Gov. Michelle Bowman deliver remarks
Friday, July 19
- American Express, Travelers Cos. (TRV), Halliburton (HAL), Fifth Third Bancorp (FITB), Huntington Bancshares (HBAN), and Regions Financial (RF) report earnings
- New York Fed President John C. Williams and Atlanta Federal Reserve President Raphael Bostic deliver remarks.