Monday July 18, 2022: $147.07 -($3.10) -(2.06%)
Jul 18, 2022 1:43:48 GMT -8
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Post by Dave on Jul 18, 2022 1:43:48 GMT -8
It’s Monday and welcome to a new week. We’re starting with a green pre-market at +0.93% at this moment.
What to Expect in the Markets Next Week
What to Expect in the Markets Next Week
Events Calendar:
Monday, July 18
Bank of America (BAC), IBM (IBM), Charles Schwab (SCHW), Goldman Sachs (GS), and Prologis (PLD) report earnings
NAHB Housing Market Index (July)
Tuesday, July 19
Johnson & Johnson (JNJ), Novartis (NVS), Lockheed Martin (LMT), Netflix (NFLX), Halliburton (HAL), Citizens Financial (CFG), and J.B. Hunt (JBHT) report earnings
Housing Starts (June)
Building Permits (June)
U.K. Employment Growth (April)
Wednesday, July 20
Tesla (TSLA), Abbott Laboratories (ABT), Crown Castle (CCI), CSX Corp. (CSX), Kinder Morgan (KMI), Biogen (BIIB), Discover (DFS), Baker Hughes (BKR), Nasdaq Inc. (NDAQ), Las Vegas Sands (LVS), Equifax (EFX), Northern Trust (NTRS), United Airlines (UAL), and Harley Davidson (HOG) report earnings
Existing Home Sales (June)
U.K. Inflation Rate (June)
Thursday, July 21
Danaher (DHR), AT&T (T), Phillip Morris (PM), Union Pacific (UNP), Marsh & McLennan (MMC), Blackstone (BX), Capital One Financial (COF), IQVIA (IQV), Travelers (TRV), Freeport-McMoran (FCX), Dow Inc. (DOW), Snap Inc. (SNAP), Tractor Supply Co. (TSCO), Quest Diagnostics (DGX), Domino’s Pizza (DPZ), American Airlines (AAL), and Mattel (MAT) report earnings
Philadelphia Fed Manufacturing Index (July)
Conference Board Leading Index (June)
ECB Policy Meeting/Interest Rate Decision
Japan Inflation Rate (June)
Friday, July 22
Verizon (VZ), NextEra Energy (NEE), American Express (AXP), and Schlumberger (SLB) report earnings
S&P Global Composite PMI - Flash Estimate (July)
U.K. Retail Sales (June)
Earnings Season Continues
Next week could be one of the busiest weeks this earnings season, with more financial firms due to report on Monday, including Bank of America, Goldman Sachs, and Charles Schwab. On Tuesday, we can expect earnings from healthcare giants Johnson & Johnson and Novartis, along with a highly-anticipated release from streaming giant Netflix. Tesla, Abbott Laboratories, Baker Hughes, Discover Financial Services, United Airlines, Harley Davidson, and others report on Wednesday. On Thursday, AT&T, Union Pacific Railroad, Snap, Domino's Pizza, American Airlines, and Mattel will also release results. Closing out the week, Verizon and American Express will report their second-quarter earnings on Friday.
Housing Market Updates
On Monday, the National Association of Home Builders (NAHB) will release its national Housing Market Index (HMI) for July, which has declined steeply in recent months, falling to a score of 67 in June from a recent peak of 84 recorded in December of last year. June housing starts and building permits from the U.S. Census Bureau will follow on Tuesday, with consensus estimates calling for a slight rebound in housing starts to 1.58 million units, from 1.55 million recorded in May. Housing starts had plummeted over 14% in May from a pandemic-era peak of 1.81 million starts in April as rising mortgage rates, surging material costs, and already-high housing prices held back the housing market in recent months, with further cooling expected in the near future.
The National Association of Realtors (NAR) will release the latest update to existing home sales on Wednesday. Existing home sales are projected to hover at 5.4 million in June, following a 3.4% month-over-month decline in May. Home sales have been on a steep downward trend since February, decelerating from a January peak of 6.49 million. The combination of rising mortgage rates and record-high price gains have priced many prospective homebuyers out of the market.
ECB Interest Rate Decision
On Thursday, the European Central Bank (ECB) is expected to raise its benchmark interest rate, the deposit facility rate, by 25 basis points (bps) at the conclusion of its July policy meeting. The rate hike will be the ECB’s first in over ten years, raising the benchmark interest rate to -0.25% from -0.5%, a level it has held since 2014. Surging inflation in the eurozone, currently running at a record high annual rate of 8.6%, has prompted the ECB to abandon its accomodative monetary policy stance of the past decade and prepare to raise interest rates for the first time since 2011.
In recent months, a growing disconnect has emerged in the monetary policy trajectories of the ECB and the U.S. Federal Reserve, which has raised interest rates more aggressively by a cumulative 150 bps since March. By contrast, the ECB has yet to raise rates in 2022, and is significantly behind its U.S. counterpart in addressing rising inflation. The divergence and growing concerns about recession risks have caused the euro to depreciate considerably relative to the U.S. dollar, with the euro falling below dollar parity for the first time since 2002 this week.
Monday, July 18
Bank of America (BAC), IBM (IBM), Charles Schwab (SCHW), Goldman Sachs (GS), and Prologis (PLD) report earnings
NAHB Housing Market Index (July)
Tuesday, July 19
Johnson & Johnson (JNJ), Novartis (NVS), Lockheed Martin (LMT), Netflix (NFLX), Halliburton (HAL), Citizens Financial (CFG), and J.B. Hunt (JBHT) report earnings
Housing Starts (June)
Building Permits (June)
U.K. Employment Growth (April)
Wednesday, July 20
Tesla (TSLA), Abbott Laboratories (ABT), Crown Castle (CCI), CSX Corp. (CSX), Kinder Morgan (KMI), Biogen (BIIB), Discover (DFS), Baker Hughes (BKR), Nasdaq Inc. (NDAQ), Las Vegas Sands (LVS), Equifax (EFX), Northern Trust (NTRS), United Airlines (UAL), and Harley Davidson (HOG) report earnings
Existing Home Sales (June)
U.K. Inflation Rate (June)
Thursday, July 21
Danaher (DHR), AT&T (T), Phillip Morris (PM), Union Pacific (UNP), Marsh & McLennan (MMC), Blackstone (BX), Capital One Financial (COF), IQVIA (IQV), Travelers (TRV), Freeport-McMoran (FCX), Dow Inc. (DOW), Snap Inc. (SNAP), Tractor Supply Co. (TSCO), Quest Diagnostics (DGX), Domino’s Pizza (DPZ), American Airlines (AAL), and Mattel (MAT) report earnings
Philadelphia Fed Manufacturing Index (July)
Conference Board Leading Index (June)
ECB Policy Meeting/Interest Rate Decision
Japan Inflation Rate (June)
Friday, July 22
Verizon (VZ), NextEra Energy (NEE), American Express (AXP), and Schlumberger (SLB) report earnings
S&P Global Composite PMI - Flash Estimate (July)
U.K. Retail Sales (June)
Earnings Season Continues
Next week could be one of the busiest weeks this earnings season, with more financial firms due to report on Monday, including Bank of America, Goldman Sachs, and Charles Schwab. On Tuesday, we can expect earnings from healthcare giants Johnson & Johnson and Novartis, along with a highly-anticipated release from streaming giant Netflix. Tesla, Abbott Laboratories, Baker Hughes, Discover Financial Services, United Airlines, Harley Davidson, and others report on Wednesday. On Thursday, AT&T, Union Pacific Railroad, Snap, Domino's Pizza, American Airlines, and Mattel will also release results. Closing out the week, Verizon and American Express will report their second-quarter earnings on Friday.
Housing Market Updates
On Monday, the National Association of Home Builders (NAHB) will release its national Housing Market Index (HMI) for July, which has declined steeply in recent months, falling to a score of 67 in June from a recent peak of 84 recorded in December of last year. June housing starts and building permits from the U.S. Census Bureau will follow on Tuesday, with consensus estimates calling for a slight rebound in housing starts to 1.58 million units, from 1.55 million recorded in May. Housing starts had plummeted over 14% in May from a pandemic-era peak of 1.81 million starts in April as rising mortgage rates, surging material costs, and already-high housing prices held back the housing market in recent months, with further cooling expected in the near future.
The National Association of Realtors (NAR) will release the latest update to existing home sales on Wednesday. Existing home sales are projected to hover at 5.4 million in June, following a 3.4% month-over-month decline in May. Home sales have been on a steep downward trend since February, decelerating from a January peak of 6.49 million. The combination of rising mortgage rates and record-high price gains have priced many prospective homebuyers out of the market.
ECB Interest Rate Decision
On Thursday, the European Central Bank (ECB) is expected to raise its benchmark interest rate, the deposit facility rate, by 25 basis points (bps) at the conclusion of its July policy meeting. The rate hike will be the ECB’s first in over ten years, raising the benchmark interest rate to -0.25% from -0.5%, a level it has held since 2014. Surging inflation in the eurozone, currently running at a record high annual rate of 8.6%, has prompted the ECB to abandon its accomodative monetary policy stance of the past decade and prepare to raise interest rates for the first time since 2011.
In recent months, a growing disconnect has emerged in the monetary policy trajectories of the ECB and the U.S. Federal Reserve, which has raised interest rates more aggressively by a cumulative 150 bps since March. By contrast, the ECB has yet to raise rates in 2022, and is significantly behind its U.S. counterpart in addressing rising inflation. The divergence and growing concerns about recession risks have caused the euro to depreciate considerably relative to the U.S. dollar, with the euro falling below dollar parity for the first time since 2002 this week.