Weekly Market Intro – kick-off the Q2 earnings season | Finance and Markets

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Wall Street indexes reached another historical high last week with Dow Jones Industrial Average conquering the key threshold of 27,000 points and the broader S&P 500 closing at more than 3,000 points.

The main US indexes crossed a number of milestones and reached a steady growth this week after Federal Reserve Governor Jerome Powell hinted for lowering of interest rates. Dow Jones ended the session at more than 27,000 points for the first time on Thursday, and with the increase on Friday its growth for the week reached 1.5%. S&P 500 reported a weekly increase of 0.8% and Nasdaq finished the week with a 1% jump.

The new week is expected to be relatively calm for the markets with a focus on investors turning to China’s GDP and industrial output, data on the UK labor market, economic attitudes in Germany, retail sales in USA and others.

However, this week gives the official start of the new earnings season with corporate reports being on the spotlight. There will be plenty of important financial reports, starting with the largest banking institutions.

Upcoming economic data

On Monday, July 15, China will release GDP data in the second quarter, industrial production and retail sales in June. The day is off in Japan.

On Tuesday, July 16, the focus of investors will turn to the protocol of the latest meeting of the Reserve Bank of New Zealand. Later in Europe, there will be a series of data, including the UK labor market, as well as the Eurozone trade balance in May and economic attitudes. The day will continue with the Germany’s economic attitudes with the consensus forecast for -19 points at -21.1 points a month earlier. In the US will be released the retail sales and industrial output data for June.

On Wednesday, July 17, the day will start with UK inflation data with the expectations to remain at 2% YoY and 0.3% MoM. Focus is also on inflation data in the Eurozone, where no change is expected from the 1.2% level. Russia will announce up-to-date information on retail sales, unemployment, and GDP. Markets will also track the US data on construction permits in June, new homes and crude oil inventories. At the end of the day, the Federal Reserve will publish the latest edition of the Beige Book.

On Thursday, July 18, will be published the data on the labor market in Australia, as well as the results of the business confidence survey in the country. In the UK, will be released the retail sales data for June, with the consensus forecast slightly improving compared to the previous month. In the end, the investors will focus on the latest data on the US jobless claims.

On Friday, July 19, Japan will report inflation in June, while Germany will post the producer price index with an expectation to remain at a level of 0.1%. At the end of the day in Canada will be released the sales data for May.

Upcoming corporate earnings

On Monday, July 15, the investors will focus on the financial report of investment bank Citigroup. During the day will be released also the earnings of the trucking and transportation company J B Hunt Transport Services and retailer Sears Holdings.

On Tuesday, July 16, will be published the earnings statements of United Financial Bancorp, as well as United Airlines, Johnson & Johnson and Domino’s Pizza. However, the focus of investors will be on financial reports of banking giants JPMorgan Chase, Wells Fargo, and Goldman Sachs.

On Wednesday, July 17, the markets will focus on the financial statement of aluminum company Alcoa, health care company Abbott Laboratories and the Bank of New York Mellon. However, the key event during the session will be earnings reports of Bank of America and Netflix.

On Thursday, July 18, will be published the reports of the asset management company Blackstone Group, the managed health care company UnitedHealth Group, the cigarette and tobacco manufacturer Philip Morris International, as well as the investment bank Morgan Stanley.

On Friday, July 19, the market’s focus will be turned to the financial services company American Express, investment manager BlackRock and the oilfield services company Schlumberger.