What to expect in the week ahead (AMC, COIN, BABA, DIS)

Moomoo Breakfast US wrote a column · Aug 8, 2021 18:54

What to expect in the week ahead (AMC, COIN, BABA, DIS)

Weekly market recap
For the week, $S&P 500 Index(.SPX.US)$was up 1.57%; the $Dow Jones Industrial Average(.DJI.US)$is headed for a weekly rise of 0.78%, while the $Nasdaq Composite Index(.IXIC.US)$is looking at a weekly gain of 1.11%.

The Labor Department Friday showed the U.S. economy added 943,000 jobs in July. Economists expected 845,000 new jobs last month, according to Dow Jones estimates. The unemployment rate dropped to 5.4%, below the expectation of 5.7%.

"You saw a lot more jobs being created in those areas that are reopening — restaurants, hotels, logistics, transportation," Raymond James Chief Investment Officer Larry Adam said. "That's a good sign. I think that puts more spending power behind the consumer going forward and I think that that’s ultimately a good thing for the economy."

The signs of a strong economic recovery could prompt the Federal Reserve to pull back its monetary support measures and prepare to begin tapering its bond-buying program.

Here's a look at the returns of S&P 500 sectors.

Source: jhinvestments

The week ahead in focus
U.S. senators reconvened Sunday to work toward the passage of a $1 trillion infrastructure bill, a top political priority of President Joe Biden. The Senate is slated to hold another key procedural vote late Sunday and vote on final passage Tuesday.

Investors are awaiting key inflation data scheduled for release this week. The consumer price index and the producer price index are scheduled to come out Wednesday and Thursday, respectively.

Several Fed officials are scheduled for speaking appearances in this week, with investors listening with a close ear for insights into the central bank's tapering decision making. Atlanta Fed President Raphael Bostic, Richmond Fed President Thomas Barkin, Chicago Fed President Charles Evans and Kansas City Fed President Esther George are all set to speak this week.

Monday 8/9
$AMC Entertainment(AMC.US)$, $BioNTech(BNTX.US)$, $The Trade Desk(TTD.US)$report quarterly results.

Tuesday 8/10
The National Federation of Independent Business reports its Small Business Optimism Index for July. Consensus estimate is for a 102.8 reading, roughly even with the June data, which was the highest since October.

$Coinbase(COIN.US)$and $Unity Software(U.US)$announce earnings.

Wednesday 8/11
$eBay(EBAY.US)$, $NIO Inc(NIO.US)$, $Coupang(CPNG.US)$release quarterly results.
The BLS reports the consumer price index for July. Economists forecast a 5.3% increase year over year, after a gain of 5.4% in June. The core CPI, which excludes volatile food and energy prices, is expected to rise 4.3%, compared with 4.5% previously.

Inflation, and whether it is transitory, has generated much discussion on Wall Street this year, with the June CPI showing the fastest pace of growth since July 2008 and core CPI rising at the swiftest clip in nearly 30 years.

The Treasury Department releases the monthly budget statement for July. The estimated deficit is $267 billion for the month, and $3 trillion for fiscal 2021, which ends in September. The $3 trillion would be just shy of fiscal 2020's $3.1 trillion deficit, a record.

Thursday 8/12
$Airbnb(ABNB.US)$, $DoorDash(DASH.US)$, $Disney(DIS.US)$, $Baidu(BIDU.US)$and $Palantir(PLTR.US)$hold conference calls to discuss earnings.

The BLS reports the producer price index for July. Consensus estimate is for a 0.4% month-over-month rise. The core PPI, which excludes volatile food and energy prices, is projected to increase 0.5%. The PPI and core PPI, both jumped 1% in June.

The Department of Labor reports initial jobless claims for the weekend ending on Aug. 7. In July, claims averaged 392,000 a week, slightly less than the June data. Jobless claims have trended down since peaking in the spring of 2020 but remain elevated compared with prepandemic levels.

Friday 8/13
The University of Michigan releases its Consumer Sentiment index for August. Expectations are for an 81.1 reading, roughly even with the July figure.
Source: CNBC, Barron's

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more