The United States Q2 earnings season continues on a high note this week, with numerous major companies set to release their latest reports.
As potential U.S. interest rate cuts present investors with a dilemma – either to continue investing in the Big Tech stocks that have driven huge returns or shift towards markets that could benefit from easing monetary policy – this earnings season will bring some clarity to the decision-making process.
Key companies to watch include BlackRock Inc (NYSE:BLK), Goldman Sachs Group Inc (NYSE:GS), UnitedHealth Group Inc (NYSE:UNH), Bank of America Corp (NYSE:BAC), Morgan Stanley (NYSE:MS), ASML Holding NV (NASDAQ:ASML), Johnson & Johnson (NYSE:JNJ), Elevance Health Inc (NYSE:ELV), Taiwan Semiconductor Manufacturing Co. Ltd (NASDAQ:TSM), Netflix Inc (NASDAQ: NFLX), and Novartis AG (NYSE:NVS).
Federal Reserve Chair Jerome H. Powell’s speech at the Economic Club of Washington, D.C. will be closely monitored for insights on monetary policy. Additionally, the Federal Reserve will publish its Beige Book report, offering anecdotal information on current economic conditions from each of the twelve Federal Reserve Districts.
Several key US economic data releases this week include June’s data on retail sales, building permits, industrial production, and the Philadelphia Federal Reserve Manufacturing Index.
June’s retail sales are expected to show no growth after a slight 0.1% increase in May, indicating a slowdown in consumer spending. Industrial production is forecasted to increase by a modest 0.3%, down from a revised 0.7% growth in May. At a seasonally adjusted annual rate of 1.399 million in May, building permits was still at the lowest since June 2020. The Philadelphia Fed Manufacturing Index for July is expected to rise to 2.9 points, up from 1.3 in June.
Bloomberg will also release the July United States Economic Survey, providing further insights into the economic outlook. This week promises to be eventful for the U.S. markets, with earnings reports, economic data, and Federal Reserve communications all potentially influencing investor sentiment and market direction.
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.
