Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Top 5 Things to Watch in Markets in the Week Ahead

EconomyAug 15, 2021 07:24AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Noreen Burke

Investing.com -- Investors will be looking to the Federal Reserve minutes and the latest U.S. retail sales data to give direction to markets in the week ahead, while a flurry of retail earnings will also keep the focus on consumer strength. Chinese data will give a snapshot of how the economy is faring as the delta variant of the coronavirus bears down and New Zealand looks set to be one of the first of the world's advanced economies to raise interest rates in the pandemic era. Here’s what you need to know to start your week.

  1. Federal Reserve minutes

On Wednesday the Fed releases the minutes of its July meeting, which will be scrutinized for policymakers’ views on when to start scaling back the Fed’s monthly bond purchases, as well as their outlook on the economy.

Last month Fed officials declared the recovery intact despite the rise of the delta variant and since then the stronger-than-forecast July jobs report prompted several policymakers to suggest the tapering of asset purchases might start sooner rather than later.

"I know some Fed officials are pushing for it to happen at the September meeting, but that is very unlikely," said Jim O'Sullivan, chief U.S. macro strategist at TD Securities.

"November is possible if the next two employment reports are strong enough, but the odds favor December as the time of the formal announcement."

  1. U.S. retail sales

The U.S. economy is growing strongly but the spread of the delta variant remains a headwind so upcoming economic data will provide a fresh insight into consumer demand after a report on Friday showing that consumer confidence fell to its lowest level in a decade.

Consumer spending accounts for around 70% of U.S. economic output.

Investors will be eyeing Tuesday’s U.S. retail sales data to see whether the shift in spending from goods to travel, leisure and services, which aren’t reflected in retail sales, continued in July.

Economists are forecasting a 0.2% fall, amid another expected steep decline in auto sales.

Other reports on the slate include industrial production on Tuesday and initial jobless claims Thursday as well as the Fed’s Empire State manufacturing index on Monday and the Philadelphia Fed manufacturing survey on Thursday.

  1. Retail earnings

Retail earnings could also shed more light on the strength of consumer demand in the coming week, with several large retailers including Walmart (NYSE:WMT), Target (NYSE:TGT), Macy’s (NYSE:M), Lowe's (NYSE:LOW) and Home Depot (NYSE:HD) reporting quarterly results.

Ross Stores (NASDAQ:ROST), TJX (NYSE:TJX) and Bath & Body Works (NYSE:BBWI) will also be reporting.

In particular, investors will be on the lookout for insights on how retailers are dealing with rising prices and labor market shortages.

The earnings results come at the end of a stellar U.S. second-quarter results season. S&P 500 earnings are expected to have jumped 93.1%, well above prior expectations of 65.4%, according to Refinitiv IBES.

  1. China recovery

China, which is dealing with its largest outbreak of Covid since the early days of the pandemic, has imposed mass testing and travel restrictions, crimping economic activity.

Several Wall Street investment banks, including Goldman Sachs last week cut their China growth forecasts for the rest of the year.

Data on retail sales, industrial production and fixed asset investment all due out on Monday will show how the economy fared in July. The numbers are expected to slow, adding to concerns that the recovery in the world’s second-largest economy is losing momentum.

The recovery from the pandemic has been uneven in China, with export demand driving most economic growth, while domestic demand has returned more slowly.

  1. New Zealand rate hike

The Reserve Bank of New Zealand bank meets on Wednesday and looks set to become the first major economy to raise interest rates since the pandemic hit as its red-hot economic recovery continues.

Super-strong jobs data have cemented expectations of a hike, which would be New Zealand's first since mid-2014. This is in sharp contrast to 2020, when rates were slashed 75 basis points to 0.25% and a move below zero became a real possibility.

--Reuters contributed to this report

Top 5 Things to Watch in Markets in the Week Ahead
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (10)
A Day Late, A dollar Short.
A Day Late, A dollar Short. Aug 16, 2021 7:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you need to see a "shrink" NOW!
Angel Kaushish
Angel Kaushish Aug 15, 2021 2:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump has been far the best president in the US History. Without Trump, the world is falling apart!
Show previous replies (1)
Ivo Ferin
Ivo Ferin Aug 15, 2021 2:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You need to look into the ‘oranges’ of trump delusions.
ROBERTO CARLORITA
ROBERTO CARLORITA Aug 15, 2021 2:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
please someone take this man to the hospice
ROBERTO CARLORITA
ROBERTO CARLORITA Aug 15, 2021 2:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stan Smith  the elite and the world hates Trump because he is self-centered and made the worst administration in the USA
Angel Kaushish
Angel Kaushish Aug 15, 2021 2:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ROBERTO CARLORITA  You are programmed by the media. Trump has always been right. This Biden is sleepy joe! China, Middleeast, etc. all other countries were well controlled by Trump. We all in USA loves Trump and we will show everyone in 2024 as Trump to revive the world again!
Angel Kaushish
Angel Kaushish Aug 15, 2021 2:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stan Smith  Yes, Trump is the greatest president. Now it looks like US has no president. Ugly Demonic democrats in play!
Stan Smith
Stan Smith Aug 15, 2021 2:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The main thing to watch for is this: As Main Street Confidence Crashes, Wall Street Is The Most Bullish In 20 Years...If all the analysts on the Street are bullish, I’d be very cautious. The caring and wonderful people of Wall St are luring in as many bag holders as possible before pulling the plug...you know, like they always do.
Mark Jannetty
Mark Jannetty Aug 15, 2021 12:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
markets going down? with Biden destroying 20 years of progress in the middle east in his first 7 months
Show previous replies (2)
NYSE NASDAQ
NYSE NASDAQ Aug 15, 2021 12:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you go there and fight them.
Angel Kaushish
Angel Kaushish Aug 15, 2021 12:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
NYSE NASDAQ  Trump has been far the best president in the US History. Without Trump, the world is falling apart!
Stan Smith
Stan Smith Aug 15, 2021 12:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trillions spent on American presence in Afghanistan and training Afghan troops...and within a month the Taliban are back in control. US foreign policy is a frickin joke!!
Sarunas Simkus
Sarunas Simkus Aug 15, 2021 12:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden is simply doing what Trump agreed with Taliban, get real for once
Kelly Mayer
Kelly Mayer Aug 15, 2021 12:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sarunas Simkus Biden doesn't have 10% of the intelligence Trump has. Biden will f""" up everything the Trump administration had set to workout wonderfully. You can borrow a Ferrari, but that doesn't make you a pro racer.
Dave Wastreet
Dave Wastreet Aug 15, 2021 12:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It’s time!!
MAP SR
MAP SR Aug 15, 2021 11:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When comparing New Zealand to the US with regards to tapering, you are comparing a Toyota Corolla to a Rolls-Royce. There is just no comparison.
Adriano Gouveia
Adriano Gouveia Aug 15, 2021 11:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What's wrong with the corolla?
frank zapper
frank zapper Aug 15, 2021 10:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
most senior citizens have s.s. and a small pension or 401k. everything it market connected now. in the past u went into equity's to grow then when retired fixed income, fed or corporate bonds to lock in their money and get a safe return. since that is realy not the case anymore. the fed has to keep the market inflated. the banksters have ruined the American dream.
Sarunas Simkus
Sarunas Simkus Aug 15, 2021 10:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The seniors LIVED the American dream, and new genenerations are paying for it. Everyone talks about US debt - look how much US is spending on social security and medicare. This is money spent,not invested. New generation have student loans, other financial issues living with parents. Birth rates are falling, whi is going to keep paying for the seniors in 10-40 years? So stop crying about current seniors, they are fine, invest in new generation, because in the end, spending and investing are not the same.
Millennial Metals
Millennial Metals Aug 15, 2021 10:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The USA is on the verge of total collapse
David Helms
David Helms Aug 15, 2021 9:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The US economy has a rather artificial feel to it. Cheap money and low interest rates have come at the expense of senior citizens who need fixed income options and cannot have significant exposure to equities in an absurdly over-valued market. There will be unintended consequences to all of the abnormalities.
New Jazenevd
New Jazenevd Aug 15, 2021 9:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Many senior citizens have options to be in market. Certainly, too many have been pushed to fixed income scams, starting with SocSec and ending with annuities, insurances, financial advisors, etc. This is regretful.
jason xx
jason xx Aug 15, 2021 9:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If seniors have enough money to earn livable income on stock Dividends then they can afford to liquid and spend some of that money. why do they need to die with it? not trying to be cruel but plenty of seniors are poor with almost nothing in savings. Why should the priority be seniors with huge stock portfolios?
Roger Miller
Roger Miller Aug 15, 2021 9:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
jason xx It’s not that they want to die with it, it’s that they don’t know how long they will live and have almost no earning capabilities if emergencies arise.
Roger Miller
Roger Miller Aug 15, 2021 9:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It is artificial, people were happy and spending when the government was sending them bonus money, now that’s gone and they have to go back to work.
David Helms
David Helms Aug 15, 2021 9:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Roger Miller  You are correct longevity is the question and our generation wants to be self-sufficient and independent. CDs, bonds, and money market investments are not available to give senior citizens a safe option to diversify. People like Jason do not understand the baby boomer generation.
New Jazenevd
New Jazenevd Aug 15, 2021 7:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Governments create money out of thin air. Stock market goes higher, fueled by this new money. Anything else is just noise, produced by media. All these “things to watch” appear, because media has to produce articles.
Show previous replies (1)
Paolo Paolo
Paolo Paolo Aug 15, 2021 7:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'm not sure
New Jazenevd
New Jazenevd Aug 15, 2021 7:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Kings Wales  Absolutely.
Seidu Alhassan
Seidu Alhassan Aug 15, 2021 7:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I like you bro
Seidu Alhassan
Seidu Alhassan Aug 15, 2021 7:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Drop your media handle
Kings Wales
Kings Wales Aug 15, 2021 7:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Paolo Paolo  well get educated on how to take advantage from those opportunities.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email