Markets have a big week ahead with important data points and a slew of big earnings reports on the horizon. Investors will have new information on the services sector, consumer credit, and corporate earnings to digest as they decide how to set the tone heading into the early part of next week.

Key Economic Data Releases

1. Services Sector PMIs: Monday will see the release of the latest round of Purchasing Managers’ Indexes (PMIs) for the services sector. Another poor result for the services sector can be read as another warning signal that growth is below trend. In the gloom of last week’s reports on manufacturing PMIs, many experts pin their hope on the strength of the services sector to keep the economy growing, not least because the services sector accounts for over 80 percent of the country’s economic activity.

2. Consumer Credit Data: Wednesday will see consumer credit data for June released, indicating if consumers are still adding to their debt to fuel their spending, which is their spending, which is the most important part of

3. Wholesale Inventories: The wholesale inventories figure for June is due Thursday, revealing how businesses adjust their inventories to changing sales forecasts.

Federal Reserve Insights

Two Federal Reserve officials will speak this week, with remarks from San Francisco Fed President Mary Daly coming Monday after markets close, and Richmond Fed President Tom Barkin on Thursday. Investors will listen for any clues on what policies might come next.

Earnings Reports to Watch

By this point, earnings season is winding down, but it’s worth noting some high-profile companies due to report their latest quarterly results are major players in the morning’s market action right now.

1. Monday:

– Palantir Technologies (PLTR): Investors will look for details on how the firm is growing based on its artificial intelligence (AI) platforms.

– CSX (CSX): The transportation company will also report its earnings.

2. Tuesday:

Instead, they love to buy the stock of companies whose business models they understand perfectly well and play tricks on Wall Street to extract the best price they can.

1. Uber Technologies (UBER) Uber lost money for the first time in the first quarter, recording a net loss of $29 million – all due to a $700 million adjustment to its investments.

– Caterpillar (CAT) and Amgen (AMGN): These industry giants will also reveal their quarterly results.

— Airbnb (ABNB), Super Micro Computer (SMCI) Yum! Brands (YUM), and Reddit (RDDT) are other big names reporting on Tuesday.

3. Wednesday:

Walt Disney (DIS): the company is expected to flip to a profit, driven by growth in its experiences unit and an earnings surprise in direct-to-consumer entertainment, an area Disney struggled with in its last quarter.

– Novo Nordisk (NVO), Shopify (SHOP), and CVS Health (CVS) will also announce their earnings.

4. Thursday:

Eli Lilly (LLY) – earnings/weight loss drugs investors will want to hear about the latest with the company’s weight-loss drugs and its current success.

– Gilead Sciences (GILD): This news comes just a few weeks after good announcements for HIV treatment commercialization.

5. Friday:

– Hawaiian Electric (HE) will close out the week with its earnings report.

Market Reactions and Broader Implications

As evidenced last week by a weaker-than-expected jobs report and contraction in the manufacturing sector, markets were rattled, igniting a massive sell-off. On Monday, the Dow Jones Industrial Average closed at 38,703.27, down 1,033.99 points (ie, 2.6 percent), while the Nasdaq Composite closed at 16,200.08, down 3.43 percent, and the S&P 500 ended at 5,186.33, down 3 percent, the largest one-day decline for both the Dow and S&P since September 2022. Further, a global market sell-off was evidenced by Japan’s stock market posting its worst daily drop in history, other than Black Monday in 1987, and spurring further concerns of a global meltdown.

Fears of a US recession set in after last week’s disappointing jobs report and then intensified following the Federal Reserve’s decision to stay steadfast on leaving interest rates stuck at their levels of late 2000. Sliding oil prices and global recession fears sparked an anticlimactic sell-off in mega-cap techs and hot AI trades. Nvidia dropped 6.4 percent, Apple fell 4.8 percent, Tesla closed down 4.2 percent, and Super Micro Computer lost 2.5 percent.

As turmoil roiled markets, US treasury yields fell, with the yield on the benchmark 10-year note coming in at 3.78% on Monday, its lowest level since June 2023. Bitcoin also tumbled, at one point falling from nearly $62,000 on Friday to around $54,000 on Monday.

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