A big week for data as well as some big players in earnings this week will likely make for some interesting movements, or at the very least, some comforting market contextualisation. Investors will be on the lookout for FOMC minutes and Walmart earnings amongst a wide selection of notable economic comings and goings. Additionally, a focus on US retail could make high street stocks attractive considerations for traders this week.
Here are the week’s key events:
A groggy start to an otherwise big week rather fittingly kicks off with earnings reports from monday.com - and not much else. The project management software company saw some outperformance last quarter against analyst expectations, but with a P/E ratio of -90.63 I doubt any traders are holding out for this one. Perhaps serving as a somewhat of a calm before the storm, Monday will likely only serve to build anticipation for the big data releases to come.
Tuesday hits the ground running however, with monetary policy meeting minutes being released in the early hours of the morning GMT. Borrowers took a breath last month as the RBA paused rate hikes at 4.1% but there is a distinct possibility of further increases if inflation refuses to be tamed. Elsewhere, US retail sales figures from the Census Bureau are releasing in tandem with Home Depot earnings. This is likely to spell reassurance for traders if demand remains consistent – a double edged litmus test for the US retail sector.
Earnings – Home Depot
Wednesday continues to be a busy one for rates - with the Federal Reserve and the RBNZ also chiming in with meeting minutes and monetary policy statements it’s a big day for monetary policy. July’s meeting saw the FOMC continue to raise interest rates after a temporary pause in June – the market will look to the minutes as it anticipates the possibility of further hikes for the US. The RBNZ is anticipated to leave rates on hold but as above, inflationary pressure could prompt a policy surprise. Finally, US earnings continue with Cisco Systems adding to the busy day for data.
Earnings - Cisco Systems
Thursday brings unemployment data for both the US and Australia as well as Walmart’s earnings report – giving traders lots to pay attention to as the week winds to a close. US and Australian unemployment data will add to developing market sentiment this week, providing further insights into economic health and potential short term policy shifts. Equally, if Walmart’s earnings per share continue to outperform expectations (as it has for the last four quarters), it will also validate a generally positive market sentiment.
Earnings - Walmart
Ending the week on a softer note, with no significant earnings, UK retail sales and Japanese inflation rates represent less significant appendages to the vivid picture of global economic health painted throughout the week.
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