What will happen during week 30, 2019? Here is something traders will focus on before the Bell rings
This week, investors received important earnings data from leading companies like Facebook, Boeing, Caterpillar, Deutsche Bank, and Snap. These results were mixed. While some companies like Facebook reported excellent results, others like Boeing, Caterpillar, and iRobot disappointed.
Boeing blamed the weakness in its 737-unit while Caterpillar and iRobot blamed their woes on higher costs of raw materials, increased competition, and the trade war.
In the coming week, the earning season will continue.
⊳ Monday: investors will receive results from companies like AGCO, Akamai, Ametek, Baidu, Black Knight, Cognex, Eaton, Illumina, Johnson Controls, KBR, Komatsu, NXP, PerkinElmer, RingCentral, SS&C, Seagate, and Terex among others.
⊳ Tuesday: companies like 2U Inc, Apple, Cummins, DR Horton, Eagle Materials, Embraer, FireEye, Hubbel, Ingersoll-Rand, Leidos, MakeMyTrip, Maxim, Paycom, Waters, Zendesk, and Zynga.
⊳ Wednesday: the major companies that will report are Activision Blizzard, Alteryx, Belden, CDW Corp, CGI Inc, Cognizant, EPAM Systems, Fair Isaac, Garmin, General Electric, Liberty Media Group, MSCI, Motorola, RealPage, Spotify, Take Two Interactive, and Twilio among others.
⊳ Thursday: companies that will report are Carbon Black, Arista Networks, Blackline, Etsy, Fortune Brands, GoDaddy, Pinterest, Qorvo, Rapid7, Shopify, Square, and Xylem among others.
⊳ Friday: key companies that will report are Axon Enterprise, Alamo, Kyocera, and Constellation Software among others.
→ Earnings Season – 5 Tips to Make a Fortune
Other than corporate earnings, investors will receive the Federal Reserve interest rates decision on Wednesday. The decision comes at a time when cracks appear to be forming in the global economy.
As a result, investors expect that the Fed will cut interest rates by 25 basis points. This will be the first rate cut in more than ten years. The Fed is also expected to announce that it could restart the quantitative easing program.
→ A Review of Global Central Bank Actions and What they Mean for the Future
US Jobs Numbers
On Friday, the US Bureau of Labor Statistics (BLS) will release the jobs numbers for July. Analysts expect the economy to have added more than 160k jobs in July. While this will be a good number, it will be much lower than the 224k jobs that were created in June.
The unemployment rate is expected to decline to 3.6% while the participation rate is expected to increase slightly to 63%. The average weekly hours are expected to remain unchanged at 34.4 while the average hourly earnings are expected to increase by 3.2%.
China PMI Data
As the most powerful economy in the world, investors follow closely the happenings in the country. On Wednesday, the country will release the manufacturing PMI. The market expects the manufacturing PMI to increase to 49.6 from the previous 49.6.
While this will be an increase, a PMI below 50 is usually a sign of contraction. On Thursday, Caixin will release its manufacturing PMI numbers.
Other Economic Data
Throughout the week, investors will receive a number of economic data. On Monday, they will receive the Mexican unemployment rate, Austrian manufacturing PMI, and Brazil budget.
On Tuesday, Japan will release its employment data while Germany will release the export and import data. Sweden will release the GDP numbers for the second quarter while the European Commission will release the consumer and business confidence data.
From the US, investors will receive the personal income and spending data, the real personal consumption data, the PCE price index, pending home sales, and consumer confidence.
On Wednesday, from Australia, they will receive the CPI data while from Japan, they will receive the construction orders and housing confidence. They will also receive the German unemployment data, EU CPI, and the Canadian GDP numbers.
On Thursday, investors will receive the PMI data from most European and North American countries.
Meanwhile, the Bank of England will release its interest rates decision. The bank is expected to leave interest rates unchanged.
On Friday, investors will receive the PPI and retail sales data from Australia and Switzerland. The UK will release the construction PMI data while the EU will release the PPI and retail sales data.
From the US, they will receive the employment data and the Michigan consumer sentiment numbers.
More useful resources
Employment Situation Summary – bureau of Labor Statistics
Earnings Calendar by Yahoo Finance