This week is set to be the busiest week of the second-quarter earnings season, with a third of S&P 500 companies scheduled to report. Alongside these earnings reports, there will also be key economic data releases including the latest U.S. jobs data and purchasing managers' indexes.
Wednesday's Earnings Highlights
On Wednesday, we can expect earnings reports from several notable companies, including CVS Health, PayPal Holdings, Qualcomm, Shopify, and Simon Property Group. In addition, Airbnb, Alibaba Group Holding, Amazon.com, and Apple will be releasing their results on Thursday. The week will conclude on Friday with earnings reports from Cboe Global Markets, Dominion Energy, and LyondellBasell Industries.
Economic Data Releases
The Bureau of Labor Statistics will be releasing the Job Openings and Labor Turnover Survey on Tuesday. Economists are forecasting a slight decline in job openings compared to the previous month.
One of the most highly anticipated releases is the Jobs Friday report. Economists are expecting to see a gain of 200,000 nonfarm payrolls in July, following a rise of 209,000 in June. The unemployment rate is expected to remain historically low at 3.6%.
Finally, the Institute for Supply Management will release its manufacturing purchasing managers' index for July on Tuesday, followed by the services equivalent on Thursday.
- Arista Networks, AvalonBay Communities, ON Semiconductor, Republic Services, and Welltower will report their quarterly results.
- The Institute for Supply Management will release its Chicago Business Barometer for July. The consensus estimate is for a reading of 42.5, which is one point higher than June's reading. Despite the index remaining below the expansionary level of 50 for 10 consecutive months, the economy continues to grow at a decent clip, posting a 2.4% seasonally adjusted annual growth rate for the second quarter.
Several companies will be releasing their earnings reports on Tuesday, including Advanced Micro Devices, Altria Group, BP, Caterpillar, Ecolab, Devon Energy, Eaton, Electronic Arts, Marriott International, Merck, Pfizer, Pioneer Natural Resources, Rockwell Automation, Starbucks, and Uber Technologies.
Upcoming Economic Releases and Earnings Reports
The Bureau of Labor Statistics releases the Job Openings and Labor Turnover Survey. Economists are forecasting a slight decrease in job openings on the last business day of June, compared to May. Federal Reserve Chairman Jerome Powell recently emphasized that labor demand still outweighs the supply of available workers.
The ISM releases its Manufacturing Purchasing Managers Index (PMI) for July. It is expected to show a reading of 47, slightly higher than June's figure. The index has remained below 50 for the past eight consecutive months.
Several companies, including Albemarle, Clorox, CVS Health, DuPont, Emerson Electric, Equinix, Humana, Kraft Heinz, McKesson, Occidental Petroleum, PayPal Holdings, Phillips 66, Qualcomm, Shopify, and Simon Property Group will be announcing their quarterly results.
ADP releases its National Employment Report for July. Economists are anticipating an increase of 183,000 private-sector jobs, following a gain of 497,000 in June. According to ADP data, the median change in annual pay rose by 6.4% in June.
Notable companies such as Airbnb, Alibaba Group Holding, Amazon.com, Amgen, Apple, Becton Dickinson, Block Inc., Booking Holdings, Cigna Group, ConocoPhillips, Expedia Group, Gilead Sciences, Intercontinental Exchange, Kellogg, Moderna, Motorola Solutions, Regeneron Pharmaceuticals, SouthernCo., and Stryker will be holding conference calls to discuss their earnings.
The ISM releases its Services PMI for July. The consensus estimate suggests a reading of 53.1, slightly lower than the June data. The services sector continues to demonstrate strength, particularly when compared to the manufacturing sector.
Cboe Global Markets, Dominion Energy, and LyondellBasell Industries will be reporting their quarterly results.
The BLS releases the jobs report for July. Economists anticipate that the economy will add 200,000 nonfarm payrolls, following a gain of 209,000 in June. The unemployment rate is expected to remain unchanged at a historically low 3.6%. The labor market remains tight, and job growth has consistently exceeded expectations over the past year.
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