Economy and Markets: The Week Ahead
Last week the markets were jittery in anticipation of two major events: Jerome Powell’s speech at Jackson Hole, and Nvidia’s (NVDA) earnings report. Both created extreme volatility in advance of their releases, and both caused the markets to reverse course after the deed.
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NVDA presented another blowout earnings report, featuring record revenue and an 800% increase in net profit, which strongly boosted stocks. However, the rally dissipated within a couple of hours, as the markets were restless in anticipation of Powell’s speech.
The Federal Reserve Chair’s speech was not much of a surprise after hearing the details of the Federal Reserve’s July meeting minutes the week before. Powell reiterated that more interest rate hikes may be coming this year, as the economy is not cooling as fast as the central bank anticipated and inflation remains too high. The stock markets’ initial reaction was that of a strong decline; however, stocks took heart on Friday as Powell promised that the Fed would “proceed carefully” on any further rate increases.
This means that the Federal Reserve will continue paying close attention to the data that emerges in the weeks remaining until its next meeting in September. As the Fed reiterated numerous times, its rate decisions are data dependent. Therefore, it is worthwhile for investors to keep an eye on data, as it can help shed some light on the central bank’s further moves and their implications for the stock markets.
In this uncertain environment, investors are recommended to base their decisions on trustworthy data and analysis.
Upcoming Earnings and Dividend Announcements
The Q2 2023 reporting season is drawing to an end, but there are still some market-influencing companies reporting this week.
The most prominent reports coming out this week are these of Salesforce (CRM), Dell Technologies (DELL), and Broadcom (AVGO).
Other noteworthy reports this week are those of CrowdStrike (CRWD), Okta (OKTA), Lululemon Athletica (LULU), Dollar General (DG), Veeva Systems (VEEV), and Victoria’s Secret (VSCO).
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 Electronic Arts (EA), Home Depot (HD), Qualcomm (QCOM), Goldman Sachs (GS), PepsiCo (PEP), Bank of America (BAC), McDonald’s (MCD), General Motors (GM), Kraft Heinz (KHC), Nike (NKE), 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 important reports scheduled to be published in the next few days:
» On Tuesday, we will receive a reading on August’s Consumer Confidence Index, which is used by economists as a forward-looking indicator reflecting trends in consumer spending.
» On Wednesday, we will receive a second estimate on Q2 2023 GDP (Gross Domestic Product) Growth Annualized, released after the updates of data used to compile the report has been received by the U.S. Bureau of Economic Analysis (BEA).
» On Thursday, we will see published a report on July’s Core Personal Consumption Expenditures, the Federal Reserve’s primary inflation measurement tool, used as the benchmark in its inflation targeting actions.
» On Friday, we will see the reports on August’s Non-Farm Payrolls and Unemployment Rate. These reports are of utmost importance for policymakers, since employment, along with price stability, is one of the Federal Reserve’s mandates.
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.
