big picture today
Asia-Pacific stock markets ended the day mixed. A weaker yen spurred optimism among Japanese exporters as automakers pushed Japan’s Nikkei Stock Average up 1.23%, South Korea’s KOSPI gained 0.72% and Taiwan’s TAIEX gained 0.02%, with markets largely flat. Australia’s ASX All Ordinaries and China’s Shanghai Composite both fell just over 0.10%, India’s SENSEX fell 0.45% and Hong Kong’s Hang Seng fell 2.13% led by the Financials. European markets were mixed in midday trading, with US stock futures signaling a positive open.
What will be a big week for the market got off to a slow start with the announcement of earnings for 165 companies in the S&P 500, including some of the “Magnificent Seven” stocks that have boosted the market over the past few months. There’s also the Fed’s latest monetary policy decision. Markets expect another 25 basis points of rate hikes, but all eyes will be on what the Fed and Powell say about the course of monetary policy going forward. In this regard, the market CME FedWatch Tooldoes not expect further rate hikes in the coming months. That may be the case, but we expect a more cautious tone as the Fed shares the need to see more sustained progress in the data before considering curbing inflation.
A clue to what the Fed is likely to say will come in today’s July manufacturing and services PMI flash data. S&P Global 9:45 a.m. ET Preliminary readings for manufacturing are expected to rise to 46.4 from June’s close of 46.3, while preliminary readings for services are expected to trend lower to 54.0 from the previous month’s 54.4. New order data and inflation comments are collected to gauge the speed of the economy and the progress of inflation.
Also, the previously announced special rebalancing of the Nasdaq 100 will take place today. The changes are intended to increase the presence of smaller index constituents and reduce the dominance of stocks known as the “Magnificent Seven” in a market that once accounted for nearly half of the Nasdaq 100.That group of stocks includes Microsoft (MSFT), NVIDIA (NVDA), Meta Platform (META), Apple (AAPL), Tesla (TSLA), Alphabet (GOOGL), and Amazon (AMZN).
data download
international economy
According to preliminary figures for July, au Jibun Bank’s Japanese manufacturing PMI fell to 49.4 from the final reading of 49.8 in May. The figure was the lowest since March and marked the sixth contraction in factory activity this year as new orders fell the biggest since March while production, foreign sales and purchasing levels all continued to contract. Au Jibun Bank Flash Japan’s services PMI fell slightly to 53.9 in July from 54.0 at the end of May, marking the 11th straight month of growth for the services sector, but the July reading was the lowest since January.
The preliminary HCOB eurozone manufacturing PMI for July was 42.7, down from 43.4 in the previous month and below market expectations of 43.5, which marks a negative year in a row. The fall in new orders fell at its fastest pace since 2009, widening the gap with output declines, suggesting further declines in future production. Flash Services scored 51.1 in July, down from 52.0 in June and just below market consensus of 51.5. The latest figures showed the region’s service sector expansion at its weakest since January as new orders fell for the first time in seven months and the order backlog fell for the first time in six months.
The S&P Global/CIPS UK manufacturing PMI fell to 45 in July from 46.5 in June, below market expectations of 46.1, according to Flash estimates. July figures marked the 12th straight month of declining factory activity, the sharpest contraction since May 2020, as output continued to fall on the back of weaker demand and excess customer inventories. Flash service’s reading for July was 51.5, down from 53.7 in the previous month and below market expectations of 53.0. Inflationary pressures continued to ease, new order inflows picked up slightly, and business optimism eased to its lowest level this year on concerns about the impact of rising borrowing costs on customer demand.
domestic economy
As noted above, at 9:45 a.m. ET, S&P Global released preliminary July figures for the manufacturing and services economies, and markets are digesting data and data on inflationary pressures and the speed of the economy.
market
Markets appeared to be hoping for gains on Friday, but major indexes meta platform [-2.73%], Nvidia [-2.66%], apple [-0.62%], microsoft [-0.89%]and Tesla [-1.10%]. Technology (-0.05%), financials (-0.34%), industrials (-0.47%) and telecommunications services (-1.00%) were the only sectors that ended lower. These were enough to keep the Dow and S&P 500 flat, the Nasdaq Composite down 0.22% and the Russell 2000 down 0.35%. In personal name Qualcomm (QCOM) It rose 3.31% after the company announced a deal with. Meta Platform (META) This will bring generative AI capabilities to future mobile devices.
Year-to-date trends in key market indicators are as follows:
- Dow Jones Industrial Average: 6.28%
- S&P500: 18.15%
- Nasdaq Composite: 34.07%
- Russell 2000: 11.30%
- Bitcoin (BTC-USD): 80.29%
- Ether (ETH-USD): 57.94%
Featured stock
Before today’s US stock market trading opens, Domino’s Pizza (DPZ)and Phillips (PHG) We plan to report results on a quarterly basis.
Chevron (CVX) The company announced upside guidance for the June quarter of $3.08 EPS against consensus expectations of $2.96, after Permian Basin production of 772,000 barrels oil equivalent per day set a new quarterly record.
Driven by the great hustle and bustle around barbie and oppenheimeras well as carryovers from other films Cinemark Holdings (CNK) Released on the weekend of July 21, 2023, the film is the highest-grossing summer weekend at the box office and one of the highest-grossing weekends in the company’s history. The report points out that Warner Bros. Movies (WBD) barbie It grossed $155 million at the box office in the United States and Canada. Universal Pictures (CMCSA) oppenheimer From Friday to Sunday, it made $80.5 million domestically.
KBR (KBR) has won a significant contract worth up to $1.9 billion for continued support of NASA’s human spaceflight program, including the International Space Station, Artemis and low-Earth orbit commercialization.
Stellantis (STLA) Samsung SDI has set up a second battery manufacturing facility for electric vehicles in the United States, with production scheduled for 2027.
IPO
Readers interested in learning more about the upcoming IPO calendar can visit the Nasdaq’s Latest and Upcoming IPOs page.
After today’s market close
F5 Networks (FFIV), Logitech International (LOGI), NXP Semiconductors (NXPI), Packaging Corp. (PKG)and Whirlpool (WHR) The company plans to announce quarterly results after the stock trading halt. For more information on upcoming quarterly earnings reports, visit the Nasdaq earnings calendar.
on the horizon
Tuesday, July 25th
- Germany: Ifo Business Environment Index – July
- UK: CBI Industry Trends Order – July
- United States: FHFA Home Price Index – May
- United States: S&P Case-Shiller Home Price Index – May
- US: Consumer Confidence – July
Wednesday, July 26th
- USA: Weekly MBA Mortgage Applications
- United States: New Home Sales – June
- United States: Weekly EIA Crude Stocks
- USA: FOMC interest rate decision
Thursday, July 27th
- China: 1st Year 2023 Industrial Profits – June
- Germany: GfK Consumer Environment – August
- European Central Bank interest rate decision
- United States: Weekly Initial and Continuing Unemployment Claims
- United States: Q2 GDP
- USA: Endurance Orders – June
- US: Pending Home Sales – June
- United States: Weekly EIA Natural Gas Inventories
Friday, July 28th
- Japan: Consumer Price Index – July
- Eurozone: Business and Consumer Survey – July
- Germany: Consumer Price Index – July
- United States: Personal Income and Expenditure, PCE Price Index – June
- United States: Employment Cost Index – Q2 2023
- USA: University of Michigan Consumer Sentiment Index – July
thoughts of the day
“Optimists think this is the best of all possible worlds. Pessimists fear it’s true.” ~ J. Robert Oppenheimer
