.jpg "Another Busy Week Ahead for Investors Photo")
Never a dull moment may be the best way to describe the week ahead for investors, with key earnings reports, a Federal Reserve (Fed) meeting and the July jobs report all on tap.
On the earnings front, more than one-third of the S&P 500 Index companies are set to report results this week, including four of the “Magnificent Seven” — Apple, Microsoft, Amazon and Meta.1 Investors are beginning to question whether the large cap technology names can resume their leadership position after the “Great Rotation” into small cap and value stocks recently.
Next up is the two-day Fed meeting starting Tuesday.2 Despite improving news on inflation, the Fed is likely to emphasize the need to remain data-dependent for any interest rate policy shift. However, investors will be looking for clues during Fed Chair Jerome Powell’s press conference about the likelihood of a September rate cut.
The week finishes with the July jobs report on Friday.3 Economists are expecting 178,000 new jobs during the month with the unemployment rate holding steady at 4.1%.4 With cracks beginning to form in the U.S. labor market, bond investors are becoming more fearful the Fed will be forced to ease more aggressively to stave off a recession. The Treasury 2-Year note is opening the week at 4.37%,5 the lowest level since mid-February.6
Sources:
1Investopedia – How This Week's Big Tech Earnings Could Affect the Broader Market; 7/28/24
2,3MarketWatch – U.S. Economic Calendar; as of 7/29/24
4The Business Times – Fed Is About to Nod at a Rate Cut as Job Growth Moderates; 7/28/24
5CNBC – Treasury yields fall as investors look to key data, Fed meeting in week ahead;7/29/24
6CNBC – 2-Year Treasury Yield; as of 7/29/24
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