Economy and Markets: The Week Ahead
Last week’s market jitters were caused, in large part, by the details of the Federal Reserve’s July meeting minutes, showing that the policymakers continue to worry about inflation. According to the minutes summary, “most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy.” This means that further interest rate hikes are on the table – along with the “higher for longer” policy.
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This week, investors’ attention will be focused on the Federal Reserve Chair’s speech at the Jackson Hole Symposium on Thursday. Most analysts expect that Jerome Powell will elaborate on the Fed’s views as derived from July’s meeting minutes, i.e., state that the central bank may increase its policy rates again, depending on the data.
Speaking of the data, some important economic reports are coming out this week, as well as in the weeks ahead, which will help shape the Federal Reserve’s monetary decision at its next policy rate meeting in September. It is most worthwhile for the investors to keep an eye on these reports, as they may confirm the Fed’s hawks’ view that the inflation risks are still too significant to ignore; this may add to the downward pressures on the markets. On the other hand, if the numbers show continued convergence of inflation rates toward the Fed’s 2% target, the dovish minority at the Fed may gain an upper hand, which would be cheered by the markets.
In this uncertain environment, investors are advised to base their decisions on trustworthy data and analysis.
Upcoming Earnings and Dividend Announcements
Q2 2023 reporting season is drawing to an end, but there are still some market-influencing companies reporting this week.
The most prominent company report coming out this week is, of course, that of Nvidia (NVDA), released on Wednesday.
Apart from NVDA, the most anticipated reports this week are those of Zoom Video Communications (ZM), Lowe’s (LOW), Macy’s (M), Analog Devices (ADI), NetApp (NTAP), Peloton (PTON), Snowflake (SNOW), Dollar Tree (DLTR), and Marvell Technology (MRVL).
Companies’ reporting dates, consensus EPS forecasts, past data, analyst ratings, and price targets can be found on the TipRanks Earnings Calendar.
This week, Ex-Dividend dates are coming for the payouts of Microchip (MCHP), Prudential Financial (PRU), Applied Materials (AMAT), Costco (COST), CDW (CDW), Johnson & Johnson (JNJ), S&P Global (SPGI), and other dividend-paying firms.
Companies’ Ex-Dividend and Dividend Payment dates, analyst ratings, and price targets can be found on the TipRanks Dividend Calendar.
Upcoming Economic Calendar Events
There are several very important reports scheduled to be published in the next few days:
» On Wednesday, we will receive a preliminary reading on August’s S&P Global Manufacturing and Services PMIs, which are used by policymakers and analysts as forward-looking indicators reflecting trends in the overall economy.
» On Thursday, we will see published a report on July’s Durable Goods Orders, providing an important leading indicator of the manufacturing activity, as well as an insight into the overall economy.
» On Friday, we will see the reports on August’s Michigan Consumer Sentiment Index, which reveals the level of trust consumers have in the strength of the economy, and University of Michigan (UoM) 5-year Inflation Expectations. UoM’s survey shows consumers’ views of the long-term inflation and is used as a component in the Fed’s calculations of its Index of Inflation Expectations.
Current and scheduled economic reports, Fed statements, and other releases, as well as their level of impact on stock markets, can be found on the TipRanks Economic Calendar.
