Earnings Galore and Fed Symposium Set to Stir Stocks This Week

earnings galore and fed symposium set to stir stocks this week.jpg Business

As the majority of second-quarter earnings season wraps up, all eyes are on the remaining technology and retail giants set to report this week. From Lowe’s on Tuesday to Nvidia, NetApp, Advance Auto Parts, Bath & Body Works, and Analog Devices on Wednesday, the market is bracing for a flurry of financial revelations. The week continues to stay eventful with Dollar Tree, Intuit, and Ulta Beauty announcing their earnings on Thursday, offering further insights into the retail and tech sectors’ performance amid the ongoing economic recovery.

In addition to corporate earnings, the economic calendar is packed with several key events, including the highly anticipated annual gathering of monetary policy thinkers and practitioners in Jackson Hole, Wyoming. Hosted by the Federal Reserve Bank of Kansas City, the 2023 Economic Policy Symposium will run from Thursday to Saturday, focusing on "Structural Shifts in the Global Economy." Federal Reserve Chair Jerome Powell’s address on Friday will undoubtedly be a focal point for economists and market watchers globally.

A Busy Week Ahead for Investors with Earnings, Economic Data, and Fed Symposium

As we approach the end of the second-quarter earnings season, a number of major technology and retail companies are yet to report their results. This week is packed with important events and data releases that economists and investors are keenly watching.

Earnings to Watch

A busy week of earnings reports begins with Lowe’s on Tuesday. The following day will see Nvidia, NetApp, Advance Auto Parts, Bath & Body Works, and Analog Devices announcing their earnings. On Thursday, investors will be watching for results from Dollar Tree, Intuit, and Ulta Beauty.

Among these, Nvidia, the chip giant, is expected to announce a significant year-on-year rise in earnings per share, from 51 cents to $2.08, according to analysts surveyed by FactSet. This comes after a stellar performance this year, with Nvidia’s shares tripling in value.

Central Bankers Gather for Annual Symposium

The Federal Reserve Bank of Kansas City will host its 2023 Economic Policy Symposium from Thursday through Saturday. This year’s topic, "Structural Shifts in the Global Economy," is of particular relevance given the current economic climate. Market participants will be awaiting the keynote address by Fed Chair Jerome Powell scheduled for Friday.

Key Economic Data Releases

Economic data due this week includes Markit’s manufacturing and services purchasing managers’ indexes (PMIs) for August, both expected to tick down from July. Other data releases include existing-home sales and new-home sales data for July from the National Association of Realtors, the Census Bureau’s durable goods report for July and the University of Michigan’s Consumer Sentiment index for August.

The Consumer Sentiment index, expected to remain unchanged at 71.2, will be of particular interest as it reflects an increasing optimism among consumers about the economy over the past three months.

Final Thoughts

This week presents a crucial juncture for investors, with a flurry of earnings reports, key economic data points, and the much-anticipated Fed symposium. While the earnings reports will provide insight into the performance of individual companies and sectors, the economic data and discussions at the symposium will offer a broader view of the economy’s health and direction. Investors should brace for potential market volatility as these events unfold.

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