In the United States, this week’s economic highlights include the advance Q2 GDP growth rate, June’s PCE inflation data, and personal spending and income figures for June. Over thirty companies with market caps exceeding $100 billion are also set to release their financial statements.
The advance Q2 GDP estimate is anticipated to reflect a 2% expansion, outpacing the 1.4% growth observed in Q1, driven by a rise in consumer spending. Meanwhile, the June PCE price index is expected to show a modest increase of 0.1%, following the previous month’s stagnant figures.
Personal spending is projected to grow by 0.3%, a slight acceleration from May’s 0.2%. Conversely, income growth is predicted to decelerate to 0.4% from the 0.5% reported in May.
In addition, the S&P Global Manufacturing and Services PMI for July will offer an early glimpse into the month’s economic activity. Durable goods orders for June, and existing and new home sales data for June will provide further insights into the economy’s health.
Other key indicators to watch include the Richmond Fed Manufacturing Index for July, the Chicago Fed National Activity Index for June, and the final estimate for the Michigan consumer sentiment for July.
On the earnings front, tech giants Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOG), and Tesla Inc (NASDAQ:TSLA) are among the major companies reporting. Other industry leaders such as Verizon Communications Inc (NYSE:VZ), International Business Machines Corp (NYSE:IBM), Visa Inc (NYSE:V) and Coca-Cola Co (NYSE:KO) will also release their earnings reports.
In the political arena, President Biden’s recent announcement of not seeking re-election and his endorsement of Vice President Kamala Harris has stirred the presidential race. Despite this development, former President Trump is still considered a strong contender.
The market’s reaction will likely be limited until the Democratic ticket is finalized and the potential impact on the presidential race becomes clearer. Amidst this uncertainty, the so-called “Trump trade” may experience a temporary pause.
With this week’s spotlight on advance Q2 GDP data, June PCE inflation figures, key earnings from major companies, and political developments surrounding the upcoming presidential election, investors will closely monitor these factors to gauge the market’s direction and potential impacts on their portfolios.
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.
