Stocks got the week off to a mixed start, and the futures are suggesting a slightly positive open for today’s session. In overnight trading, the markets in Asia closed mostly lower. Meanwhile, stocks in Europe are showing modest gains. Oil prices have moved lower. West Texas Intermediate is down about 0.8%, to around $75.20 a barrel.
In the meantime, earnings season continues to chug along and, so far, the news has largely been good. With over 40% of S&P 500 companies having clocked in, more than 75% have topped analyst expectations. After today’s market close we’ll be hearing from Microsoft (MSFT) and Advanced Micro Devices (AMD). Tomorrow we’ll get the latest numbers from Meta Platforms (the parent company of Facebook (META), Mastercard (MA), and Qualcomm (QCOM). These will be followed by tech heavyweights Apple (AAPL), Amazon (AMZN), and Intel (INTC) on Thursday, along with Exxon Mobil (XOM) and Chevron (CVX) on Friday.
This week, the spotlight once again turns to the Federal Reserve, as the Federal Open Market Committee (FOMC) wraps up its two-day meeting on Wednesday. While Wall Street does not expect the central bank to make any interest-rate cuts this week, hopes of a reduction in September have gained increased support in recent weeks. Instead, analysts will be looking for any clues as to the lead bank’s timetable for reducing its target overnight lending rate. As it stands, the Fed Funds futures are pricing in as many as three quarter-point rate cuts by the end of the year.
In other economic news, this morning the Bureau of Labor Statistics will release the results of its Job Openings and Labor Turnover Survey (JOLTS) for June. Wall Street is calling for the number of job openings to dip to 8.03 million, down from 8.14 million the month before. Tomorrow we’ll get the figures for last month’s pending home sales from the National Association of Realtors. Analyst estimates are suggesting a 1.6% increase in June, versus a 2.1% decline in May. Thursday brings initial jobless claims from the Department of Labor. Expectations are pointing to an uptick to 239,000, versus 235,000 the week before. That same day, the Institute for Supply Management will release its Purchasing Managers Index (PMI) for July. Estimates suggest a reading of 49.0%, up from 48.5% the month before. (Percentages above 50 indicate expansion, while those below 50 denote contraction.) If correct, it would mark the third consecutive month of decline.
The week wraps up with the latest jobs report from the Bureau of Labor Statistics. Analysts are forecasting that 177,000 nonfarm payrolls were added in July, down from the 206,000 additions recorded in June. Additionally, the unemployment rate is expected to remain unchanged at 4.1%.
Summing up Monday’s moves for the major U.S. indexes, the Dow Jones Industrials stepped back 49 points, or 0.1%, the S&P 500 gained four points (0.1%), and the tech-laden NASDAQ advanced 12 points (0.1%). - Mario Ferro
At the time of this article’s writing, the author did not have positions in any of the companies mentioned.
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