As a new week begins, the market remains focused on the ongoing debate between a “soft landing” and a potential recession, although fears are starting to fade.
Investors should await Federal Reserve (Fed) Chair Jerome Powell’s speech at the central bank’s annual economic policy symposium in Jackson Hole, Wyoming. This event, running this week, will bring together central bankers and economists to discuss significant economic issues and policy directions.
Additionally, the release of the end-July Federal Open Market Committee (FOMC) minutes will provide further guidance on the monetary policy path. These minutes are expected to shed light on the Fed’s thinking, particularly in light of recent economic data.
The release of August flash manufacturing, services, and composite Purchasing Managers’ Index (PMI) data will offer insights into output and inflation developments ahead of the highly anticipated September Fed meeting.
Last week, easing inflation, strong retail sales, and a drop in unemployment claims helped alleviate recession fears. As a result, all three major indices had their best week since November 2023, with the S&P 500 climbing nearly 4%, the Nasdaq advancing 5.3%, and the Dow Jones rising 3%.
Other key economic indicator to watch include housing data such as building permits and July’s new and existing home sales. Earnings reports are also expected from companies like Palo Alto Networks Inc (NASDAQ:PANW), Estee Lauder Companies Inc (NYSE:EL), Lowe’s Companies Inc (NYSE:LOW), Medtronic Plc (NYSE:MDT), TJX Companies Inc (NYSE:TJX), and more.
For Medtronic, which is about to announce its financial results for its first quarter of fiscal year 2025 (1QFY2025), our research partner has indicated that expectations are leaning modestly positive. A modest revenue beat and a guidance lift by the amount of the 1QFY2025 upside are predicted.
Estee Lauder is expected to report higher fourth quarter (4QFY2024) revenue, driven by strong demand for Jo Malone fragrances and The Ordinary products in the United States and Europe. Investors will look out for comments on demand recovery in China, travel retail, Middle East conflict disruptions, supply issues, and new pricing actions.
Investors who closely monitor these economic data releases and corporate earnings reports to gauge the market’s direction will find them helpful for making informed decisions.
Disclaimer: ProsperUs Manager of Content Hailey Chung doesn’t own shares of any mentioned companies.
Reference
US Equity Research – Medtronic Plc | Aug 19, 2024
