Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Top 5 things to watch in markets in the week ahead

Published Jul 30, 2023 06:33AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
NDX
+1.44%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
+0.80%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GOOGL
-0.95%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AAPL
-0.60%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AMZN
+0.83%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GOOG
-1.22%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com -- More big tech earnings and the U.S. jobs report for July will be the main highlights in the week ahead. Investors will also be focusing on the Bank of England's latest rate decision and economic data out of the Eurozone and China. Here’s what you need to know to start your week.

  1. Nonfarm payrolls

Friday's U.S jobs report is expected to show that the economy added 184,000 jobs in July, while the unemployment rate remained at a historical low of 3.6% and average hourly earnings cooled.

The resilience of the labor market has been a key factor in shaping the view that the economy is heading towards a so-called soft landing of cooling inflation and strong growth.

Investor confidence received a boost last week when Fed Chair Jerome Powell said the central bank's staff no longer forecasts a U.S. recession and that inflation had a shot of returning to its 2% target without high levels of job losses.

The Fed raised rates by another 25 basis points to their highest level since 2007 last Wednesday and did not rule out another rate hike, saying it would follow future economic data.

Signs that the economy is growing at too rapid a pace could spark worries that the Fed needs to keep raising rates to contain inflation. Conversely, a steep drop-off in employment might rekindle recession fears.

  1. Earnings

Earnings season rolls on with megacaps Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) due to report earnings after the market close on Thursday.

Some investors are wary that a rally in tech stocks, which has been fueled in part by excitement over developments in artificial intelligence, may falter. The tech-heavy Nasdaq 100 is up nearly 44% year-to-date, while the S&P 500 information technology sector has gained nearly 46%.

Optimistic forecasts from Meta Platforms and results from Google parent Alphabet (NASDAQ:GOOGL) last week bolstered the case for those who believe megacaps’ lofty valuations are justified.

More than half of the firms listed on the S&P 500 had reported second quarter earnings as of Friday, out of which 78.7% have surpassed analyst expectations, according to Refinitiv data, cited by Reuters.

  1. Bank of England rate decision

The BOE holds its latest rate setting meeting on Thursday and markets are split about whether policymakers will revert back to a 25-basis point rate hike after a 50-bps hike in June.

Inflation hasn't accelerated since February and there are signs that widespread price pressures are starting to abate.

But inflation, at 7.9% in June, is the highest among major economies and remains well above the BOE’s 2% target, so markets shouldn’t rule out the possibility of a 50-bps hike, particularly if policymakers think they may need to hike again in September.

The BOE has faced criticism of being behind the curve from investors after inflation kept climbing higher than expected, despite 13 back-to-back rate increases since December 2021 which increased the possibility of a recession.

  1. Eurozone data

The Eurozone is to release a preliminary estimate of July inflation and second quarter GDP on Monday that will be closely watched amid debate over whether the European Central Bank may raise interest rates again at its next meeting in September.

The GDP data is expected to show that the bloc’s economy returned to growth in the second quarter, while inflation is expected to moderate only slightly.

Inflation in the euro zone has halved since peaking last October but, at 5.5%, still remains well above the ECB's 2% target.

The ECB raised its deposit rate to a historic high on Thursday but removed a clear hint at further hikes from its policy statement, meaning another increase at its upcoming September meeting should not be taken for granted.

ECB President Christine Lagarde said what would come next was in the balance, even if the central bank was determined to "break the back" of inflation.

  1. China PMIs

PMI data out of China at the start of the week are likely to point to a contraction in manufacturing activity for a fourth straight month in July, underlining the need for stimulus measures to support the post-pandemic recovery in the world’s second largest economy.

The official manufacturing PMI, which largely focuses on big and state-owned firms, and its survey for the services sector, will be released on Monday. The Caixin manufacturing PMI, which focuses on small and medium-sized enterprises, will be released on Tuesday.

Data on Thursday showed that industrial profits extended a double-digit pace of declines into a sixth straight month.

China's economy grew at a slow pace in the second quarter as demand weakened at home and abroad, but most analysts say policymakers are unlikely to deliver any aggressive stimulus amid mounting fears over debt risks.

--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.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

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 (8)
Maximus Maximus
Maximus Maximus Jul 31, 2023 6:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
beyond ridiculous, supporters of the American taliban (gop) hurling abuse at Biden for being old, with their own leader mitch mc(freeze)connells unsteady hand at the wheel...
Otb Investor
Otb Investor Jul 31, 2023 5:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Can a senile man with dementia be currupt? Or is he just being abused by his handlers? Is a puppet villain evil, or are his puppeteers the one pulling the strings?
Maximus Maximus
Maximus Maximus Jul 31, 2023 5:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you're talking about mitch mc(freeze)connel now, right?
First Last
First Last Jul 31, 2023 5:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If Joe is corrupt and senile w/ dementia, how good can he be at covering his tracks?  And if neither Trump, even when he was potus, nor his retrumplicans have been able to make a good case to prosecute Joe in court, how competent can they be?  Or how corrupt can Joe be?
Josephine Panta
Josephine Panta Jul 30, 2023 1:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
since a pandemic situation increase prices it's about buying
Josephine Panta
Josephine Panta Jul 30, 2023 1:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the oil next month higher risked
Josephine Panta
Josephine Panta Jul 30, 2023 1:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
about google is a part of business and nasdaq 100 Tesla model and obligated to president manager to be hard working invest with her finnancial successfully
Josephine Panta
Josephine Panta Jul 30, 2023 12:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Those issues latest those people since doing work a buisness lower a prices it was not a hard est money the investor be come rich so many people
Josephine Panta
Josephine Panta Jul 30, 2023 12:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
those people doesn't improve work or buisness telling no longer confused about a jobless bring down it amazing not to be a successful ah anyway some times we are perfect
Blessing Mangcotywa
Blessing Mangcotywa Jul 30, 2023 12:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Excellent report
Salvador Hernández Sánchez
Salvador Hernández Sánchez Jul 30, 2023 10:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Is necesary recession immediately…. Commodities expensives , nasdaq sp500 dj overbought ….. inflation in these prices is overbought
Mosotofa Mia
Mosotofa Mia Jul 30, 2023 10:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
mostofa
Warm Camp
Warm Camp Jul 30, 2023 8:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Chinese PMI is the only number, which can make the difference this week, and this is for commodity stocks. The rest of the market will just oscillate on very elevated level.
 
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
Continue with Google
or
Sign up with Email