What To Expect in the Markets This Week

Key Takeaways

The Federal Reserve is poised to issue its most recent rate policy on Wednesday, but the major central bank is not expected to move rates lower this time.

Big Tech earnings take centre stage in the coming week with apple, Meta, Amazon, and Microsoft all reporting.

Investors also will get updates from McDonald’s, ExxonMobil, Pfizer, and Merck.

It will be a week full of noisy data, with monetary-policy events and the reporting of more than half of the Magnificent Seven.

US interest rates will be set this Wednesday when the Federal Reserve announces the outcome of its latest policy meeting and when Chair Jerome Powell answers questions at a news conference that follows.

Some of the biggest companies reporting results this week include the Big Tech giants Microsoft (MSFT), Apple (AAPL), Amazon (AMZN) and Meta Platforms (META), along with several other chipmakers, and quarterly numbers from McDonald’s (MCD), ExxonMobil (XOM), Merck (MRK) and more.

Monday, July 29

Dallas Federal Reserve manufacturing index (July)

McDonald’s, ON Semiconductor (ON), Equity Residential (EQR), and SBA Communications (SBAC) report earnings

Tuesday, July 30

S&P CoreLogic Case-Shiller home price index (May)

Consumer Confidence (June)

Job openings (June)

Federal Open Market Committee (FOMC) meeting begins

Earnings reports are due from Microsoft, Procter Gamble (PG), Merck, Advanced Micro Devices (AMD), Pfizer (PFE), BP (BP) and Starbucks (SBUX).

Wednesday, July 31

ADP employment report (July)

Pending home sales (June)

FOMC interest rate decision

Federal Reserve Chair Jerome Powell’s press conference

Earnings for Meta Platforms (FB), Mastercard (MA), Qualcomm (QCOM), T-Mobile (TMUS), Arm Holdings (ARM), Lam Research (LRCX) and Boeing (BA) come out.

Thursday, Aug. 1

Jobless claims (Week ending July 27)

S&P manufacturing PMI (July)

ISM manufacturing (July)

Construction spending (June)

The following companies could report earnings today: Apple, Amazon, Toyota Motor (TM), Shell (SHEL), Intel (INTC), Booking Holdings (BKNG), ConocoPhillips (COP), Anheuser-Busch InBev (BUD)

Friday, Aug. 2

U.S. employment report (July)

Factory orders (June)

ExxonMobil and Chevron (CVX) report earnings

Fed Rate Decision Comes as Officials Watch Employment Levels

The date to watch is Wednesday, when the Federal Open Market Committee (FOMC) sets another interest rate.

Investors expect the Fed will hold rates steady at 5.25 to 5.5 per cent, with few forecasts calling for a rate move until the central bank’s next meeting in September. Powell will then hold a news conference after this week’s decision.

The jobs report on Friday comes on the eve of a Federal Reserve policy meeting, as Fed officials are on the lookout for any rebound in the labour market after the surprise rise in unemployment last month. Amid expectations the central bank will be steady on Wednesday with interest-rate cuts, a solid jobs report might be the missing component for economic conditions to clear the bar for a rate cut in September.

Big Tech a Highlight of Earnings Calendar, Along With Oil, Pharmaceutical Firms

Investors will be greeted by another batch of earnings reports, with the tech and energy businesses under scrutiny this week.

On the earnings calendar for Tuesday, Microsoft reports after a 20 per cent increase in cloud businesses early this year helped fuel a 33 per cent boost in quarterly net income. After Meta Platforms, the parent of Instagram shares earnings on Wednesday, it will be free to wave its pale flag again after providing a meek outlook for this latest quarter. On Thursday, Apple’s earnings count should indicate whether it can continue confounding analysts with revenue growth, and Amazon could add fuel to its advertising and cloud businesses.

Energy earnings will come under the spotlight on Friday with the reporting of the quarterly results from ExxonMobil, the oil giant that missed analysts’ profit projection in the spring quarter, and Chevron, the producer that reported lower revenue and net income in its previous financial statement. BP, Shell and ConocoPhillips reported earlier in the week.

Per-share earnings at McDonald’s, due to be released on Monday, and Starbucks earnings on Tuesday will offer signs of the breadth of the recovery in consumer strength, assuming its first-quarter data didn’t illuminate new risks; McDonald’s is reportedly maintaining its $5 value meal promotion in August, with continuing customer protests over price hikes.

Other notables this week include quarterly earnings for Boeing, its first since pleading guilty to charges it defrauded the government over a pair of 737 Max plane crashes; on Tuesday, the drugmakers Merck and Pfizer come out with their quarterly financials.