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Jul 25

This Week’s Market Moving Events

Market Recap:

The S&P and other major indexes closed at record highs last week as optimism over corporate earnings help lift share prices. Solid economic news in form of a solid housing starts report and a rise in oil rig counts, indicating strength in the energy sector, provided investors with the reason for the bullish sentiment. U.S. Treasury yields rose slightly for the week, while the USD gained against the Euro and other major currencies.

Looking Ahead:

It will be a busy week for market observers, with plenty of key economic data being released on Tuesday and Friday, including a first look at Q2 GDP, FOMC meeting minutes, and some of the most widely held companies releasing earnings. So far, about ¼ of the S&P constituents have reported quarterly earnings and of these 68% have exceeded expectations. However, this only tell part of the story, as the earnings bar is very low; the season is expected to bring a 3.7% decline in revenues and a 5.5% decline in earnings for the S&P. As such the forward P/E for the S&P 500 is now just above 17X, a historically high figure.

This Week’s Market Moving Events:

  • Monday: Dallas Fed Manufacturing Survey. Gilead Sciences (GILD), Kimberly Clark (KMB) and Texas Instruments (TXN) report earnings
  • Tuesday: Redbook Report, Case Shiller Home Prices, PMI Services, New Home Sales, Consumer Confidence, Richmond Fed Manufacturing Index, Investor Confidence. 3M (MMM), Apple (AAPL), Caterpillar (CAT), Elli Lilly (LLY), Dupont (DD) McDonalds (MCD), Verizon (VZ) report
  • Wednesday: Durable Goods, Pending Home Sales, FOMC Announcement. Altria (MO), Boeing (BA), CocaCola Co (KO), Facebook (FB), Murphy Oil (MUR), Southern Co (SO) report
  • Thursday: International Trade data, Kansas City Fed Manufacturing Index, Amazon (AMZN), Colgate Palmolive (CL), Conoco Phillips (COP), Ford (F), International Paper (IP), Raytheon (RTN) report
  • Friday: Eurozone GDP, CPI and PPI data, U.S. employment cost index, Q2 GDP. Cabot Oil & Gas (COG), Merck (MRK), Xerox (XRX), Public Service Enterprise (PEG) report.