Investors will be strongly focused on Q2 earnings this week. While the large and medium U.S. banks, along with other financial companies, continue to fill the earnings calendar, investors will be closely watching prominent tech players Netflix (NFLX) and Tesla (TSLA).
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At the same time, the importance of economic data cannot be overemphasized. Last week’s strong stock market rally was fueled by a pronounced easing of inflation numbers, lifting hopes that the Federal Reserve won’t have to increase its key interest rates as much as feared this year. Consequently, market participants will be watching the economic reports for clues about policy makers’ future steps.
Here are three economic events that could affect your portfolio this week. For a full listing of all upcoming economic events, check out the TipRanks Economic Calendar.
» June’s Retail Sales – Tuesday, 7/18 – this report, released by the U.S. Census Bureau, measures the monthly percent change of the total receipts of retail stores. The retail sales report represents a key macroeconomic metric that tracks the level of demand for consumer products, which helps gauge existing inflationary pressures and maps out the consumer inflation outlook for the coming months.
» June’s Industrial Production – Tuesday, 7/18 – this report, released by the Federal Reserve, shows the volume of production of U.S. industries like manufacturing, mining, and utilities. Although industrial production accounts for a smaller portion of the economic activity than services, its sensitivity to consumer demand and interest rates makes it a leading indicator of GDP growth and economic performance.
» June’s Housing Starts and Building Permits – Wednesday, 7/19 – the reports, released by the U.S. Census Bureau, indicate current and expected movements of the U.S. housing market. Housing Starts tracks the number of new construction projects, while Building Permits shows the number of permits given for new construction projects. Both reports imply the movement of corporate investments, since the housing industry accounts for about a quarter of total investment spending (and 5% of the overall economy). These reports provide a leading indicator for the overall economy, as they measure the current demand in the real estate market and estimate the future performance of the construction industry.
