Oil prices and existing home sales also touchstones this week
Investors are prepped for an accelerating corporate earnings flow this week and will look for clues about what results say for the economy’s recent performance and how stiff the headwinds it faces.
Goldman Sachs (NYSE:GS), Johnson & Johnson (NYSE:JNJ) and Tesla (NASDAQ:TSLA), Bank of America (NYSE:BAC), Netflix (NASDAQ:NFLX), and Twitter (NYSE:TWTR) all report earnings this week.
Q2 2022 hedge fund letters, conferences and more
Find A Qualified Financial Advisor
Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you're ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Investors are keen to see how company margins resist pressure to raise prices after last week's Consumer Price Index rose to 9.1%. The Producer Price Index, which measures wholesale inflation, topped a 10% annual rate.
Analysts generated Netflix (NASDAQ:NFLX) consensus estimates of $8.0B in revenue. $2.96 a share profit and a 1.9 million subscriber drop.
Economic data on tap includes housing starts, existing home sales, and the Philadelphia Fed Manufacturing Index.
In the boardroom-related news, Nikola (NASDAQ:NKLA) shareholders will vote on a plan to issue new shares, which would dilute the current owners' holdings. Watch GameStop's (NYSE:GME) shares, too. They'll be trading after a previously announced four-for-one stock split kicked in last week.
Avgeeks and aerospace investors will be checking YouTube videos in the coming days for the latest news from the industry's blowout at the UK's annual Farnborough Air Show, including a flight display of Boeing's (NYSE:BA) 737 MAX 10. Also cool, Boeing is demonstrating developments with sustainable, autonomous flight and its eVTOL Wisk Aero partnership.
Airbus is set to fly its A350-900 widebody in performance this week, and some analysts expect it to reveal an agreement to sell Delta (NYSE:DAL) more A220 narrow-body planes. Lockheed Martin (NYSE:LMT), Rolls-Royce (OTCMKTS:RYCEY, LON:RR), and BAE Systems (LON:BAA) will be too.
Bloomberg is hosting its New York City Crypto Summit on Wednesday and will include presentations from FTX, Tezos, Ripple, Binance, and Coinbase Global (NASDAQ:COIN).
Energy shares and crude prices fell in the past weeks amid concerns about a recession and signs of at least temporary demand destruction driven by several factors. Banks, which to date reported mixed results, also stand to lose in a recession as consumer and commercial client defaults rise.
Oil prices fell to start the week in Asia, taking back some of Friday's gains amid fears that the rising COVID spread in china could slow that nation's demand.
US West Texas Intermediate (WTI) crude CLc1 futures for Aug. delivery dropped $1.54, or 1.6%, to $96.05 a barrel at 0055 GMT after climbing 1.9% on Friday.
Brent crude futures for Sept. settlement fell $1.47, or 1.5%, to $99.69 a barrel, paring a 2.1% gain from Friday.
President Biden's visit to Saudi Arabia failed to win commitments to pump more crude. However, senior US State Department adviser for energy security Amos Hochstein massaged the snub on Sunday on CBS' Face the Nation, saying that the exporters would take "a few more steps" to boost supply.
The Organization of the Petroleum Exporting Countries (OPEC), plus Russia and a few other nonmembers, next meet to discuss output on Aug. 3. Barron's, the investor, weekly mentioned several stocks in their weekend edition. Stocks covered in the reports often react to the news the following open.
This week the magazine said apartment REITs are trading at a 21% discount to underlying assets versus 3% a year ago. The report says to watch for industry players with solid management, strong earnings and secure dividends. Its recommended list included AvalonBay Communities (NYSE:AVB), Equity Residential (NYSE:EQR), Camden Property Trust (NYSE:CPT), Mid-America Apartment Communities (NYSE:MAA), Apartment Income REIT (NYSE:AIRC), and UDR (NYSE:UDR).
Article by Greg Morcroft, Fintel
