Investors, fasten your seatbelts: It could be a turbulent week ahead.
This week is packed with everything from the Federal Reserve meeting to the June jobs report and earnings reports from over 1,000 companies, from giant to super-large to large to small.
Related: This capital move could pay off as the Fed plans to cut interest rates
The schedule comes after a turbulent week.
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The S&P 500 fell 0.8%, the Nasdaq Composite lost 2.1% and the Nasdaq 100 dropped 2.6%, but the Dow edged up and the small-cap Russell added 3.5% as investors shifted money to non-tech bets.
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The major stock averages are no longer overbought but rather oversold, and the leading indicator MACD is suggesting that the trend is down for now.
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Kamala Harris has emerged as the Democratic front-runner after Joe Biden withdrew his bid for reelection.
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Nvidia’s stock price is down about 20% from its 52-week high of $140.76 hit on June 20, which is worrying given the market has rallied significantly from its October lows.
Further volatility is possible when the Labor Department releases June employment data on Friday.
But the market isn’t panicking. Investors who stand to gain are taking profits and reinvesting them elsewhere. As asset manager John Markman wrote on Friday, “success isn’t supposed to be easy.”
A flood of profits awaits
This week is the busiest one for second-quarter earnings reports. Nasdaq expects about 1,095 companies to report, including some of the biggest names in the industry, such as:
Microsoft, expected after the close of trading on Tuesday. Microsoft (MSFT) The company’s shares fell 2.7% last week as investors began selling off expensive tech stocks. Microsoft fell 4.9% in July but is expected to rise 13.1% in 2024. Fourth-quarter earnings are expected to be $2.90 a share, up from $2.69 a year ago.
Apple, scheduled for after the close of trading on Thursday. apple (AAPL) The stock was down 2.8% for the week, but is up 3.5% from the previous month and 13.2% for the year. Third-quarter earnings are expected to be $1.34 a share, up from $1.26 a share in the same period last year.
Alexi Rosenfeld/Getty Images
Amazon.com, scheduled for after the close of trading on Thursday. Online retail giant (Amazon) The stock is down just 0.3% this week. The stock is down 5.6% this month but is set to rise 20.1% in 2024. Earnings are expected to be $1.03 a share, up from 63 cents a year ago.
Meta Platforms, scheduled after the close of trading on Wednesday. Facebook Parent Meta (Meta) The stock is down 2.3% for the week, after dropping 7.6% in July. Year-to-date gains: 31.6%. Analysts were expecting $4.69 per share, up from $3.23 a week ago.
Other notable things:
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McDonald’s (MCCD) please submit by Monday.
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Procter & Gamble (PG) and Merck (MRK) both on Tuesdays.
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ARM Holdings (arm) ,master Card (Massachusetts) Qualcomm (QCOM) please submit by Wednesday.
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Intel (International Trade Commission) and ConocoPhillips (Police Officer) submitted by Thursday.
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ExxonMobil (ZOM) Chevron (CVX) By Friday.
The Federal Reserve and employment statistics
There are two big economic events this week. The first is the Federal Reserve meeting starting on Tuesday. Some are calling for the Fed to cut interest rates now, but the earliest they can do so is September. Some economists predict the first cuts will come in December. Click on the link below for more information.
Related: Fed meeting will illuminate path to rate cuts
The Fed’s key interest rate, the federal funds rate, has been hovering between 5.25% and 5.5% for about a year as the Fed has been battling inflationary pressures.
Other Wall Street analysts:
Bond yields have been falling, and traders appear to be betting rates will fall further. The national rate for a 30-year mortgage was 6.75%, down from 7.8% in November but up from about 3.2% at the end of 2022, according to Freddie Mac.
That’s too expensive for many buyers, and sales nationwide have struggled all year.
Just as important as the Fed meeting is the jobs report coming out of the Labor Department on Friday.
The consensus forecast is that the U.S. unemployment rate will remain at 4.1% and the number of wage earners will increase by 185,000. A negative surprise, such as a large increase in the unemployment rate or a large decrease in the number of wage earners, could put pressure on financial markets.
To be sure, the employment numbers are estimates and are subject to two revisions when the July and August reports are released.
Also of interest is the S&P CoreLogic Case-Shiller Home Price Index, which measures home price fluctuations in markets across the country. The index has consistently reported increases in home prices.
Finally, a Chicago Purchasing Managers Association report due to be released Wednesday will offer a glimpse into whether companies are buying more or cutting back on goods to run their operations.
Related: Veteran fund manager predicts the stock world is in trouble
