Investors will see a variety of economic data this week
WEEKLY MARKET COMMENTARY |
Following a strong June jobs report, investor focus will be on a solid spate of first-tier data and earnings reports that will be published this week. Corporate earnings kick off Monday with Alcoa after the bell and the market anticipating that the S&P 500 will see a 5.6 percent decline in overall earnings. Historically, earnings tends to beat the consensus by 3 to 4 percent to the upside which implies modest declines in corporate earnings for the third straight quarter.
Eleven Federal Reserve (Fed) speakers will address markets this week to shape expectations in addition to the publication of the Fed’s June Beige Book of regional economic conditions. The U.S. Treasury will issue $24 billion in three-year notes on Monday, $20 billion in 10-year notes on Tuesday and a $30 billion 30-year bond reopening on Wednesday. In addition, the Bank of Canada will meet on Wednesday and the Bank of England (BoE) will meet on Thursday. The BoE may choose to cut rates on Thursday which could boost sterling and global equity markets in the aftermath of the rate announcement.