Title: Apple, Amazon Prepare to Release Financial Reports as Non-Farm Payrolls Take Center Stage
Date: July 29, 2022
The upcoming week holds significant events for the financial world as technology giants Apple and Amazon prepare to release their financial reports. Additionally, the spotlight will be on the highly anticipated non-farm payrolls, which are set to make a big debut. As investors continue to monitor economic activity, these events will play a crucial role in shaping the market’s trajectory.
The week began with the Federal Reserve raising interest rates, followed by the Bank of Japan adjusting its yield curve control policy. Despite these developments, the US stock market remained largely unfazed. With falling inflation and a stable economy, market sentiment has remained positive, reinforced by better-than-expected corporate earnings.
Federal Reserve Chairman Powell addressed the press, noting a decrease in inflation and a tight labor market. He emphasized that the US economy is not expected to fall into recession, thus providing reassurance to investors. As a series of recent data points further confirm this outlook, upcoming releases such as the unemployment rate, non-agricultural data, and job vacancies will provide additional insights. These crucial figures will also influence the Federal Reserve’s future interest rate decisions.
Commenting on the market sentiment, Bob Kalman, senior portfolio manager at Miramar Capital, stated, “The market has fully bought into the narrative it wants, which is ‘Goldilocks.’ Until we see some data that scares investors, U.S. stocks will continue to soar.”
Attention will also be focused on the quarterly results of tech giants Apple, Amazon, and Qualcomm. These reports are expected to provide valuable insights into consumer and business spending patterns amid cooling inflation. Of particular note, Apple has demonstrated resiliency in the tech sector, with its stock hitting all-time highs earlier this month. As the world‘s first $3 trillion company, Apple has also stood out by avoiding widespread layoffs.
In parallel, companies such as Google, Meta, and Microsoft have reported solid results for the previous quarter, showcasing revenue growth and improved profitability through cost-cutting measures. Nevertheless, the hype surrounding generative artificial intelligence technology, particularly in chatbots like ChatGPT, has somewhat overshadowed these achievements.
Beyond the tech sector, upcoming interest rate decisions from the Reserve Bank of Australia and the Bank of England will capture market attention. Anticipations are high for both central banks to raise interest rates by 25 basis points. Notably, the UK’s June Consumer Price Index remains stubbornly high at 7.9%, nearly four times the inflation target.
Key events to look out for next week include China’s official manufacturing PMI, Eurozone CPI and GDP rate, US Chicago PMI, Japan’s unemployment rate, China’s Caixin manufacturing PMI, Australia’s RBA interest rate decision, US ISM manufacturing PMI, US JOLTs job vacancies, US ADP employment figures, Bank of Japan’s monetary policy meeting minutes, China’s Caixin service industry PMI, Eurozone’s monthly PPI rate, UK interest rate decision, US initial jobless claims, US factory orders, Eurozone retail sales, US unemployment rate, and seasonally adjusted non-farm payrolls.
As each event unfolds, investors and economists will closely analyze the data for insights into the global economic landscape and potential market trends.