Stock Markets Next Week: Probably sideways or rangebound movement ahead
Based on the movements last week, Stock Markets Next Week starting July 31, 2023 can observe another mixed week. The major indices closed with moderate gains last week, setting the stage for a potentially volatile week ahead.
The S&P 500 (Symbol: $SPX) ended the previous week at 4,554.64, recording a gain of 18.30 points (+0.40%). On a weekly basis, the index rose by 0.70%, and on a monthly and yearly basis, it climbed by 4.74% and 14.97%, respectively. The Dow Jones Industrial Average (Symbol: $DJI) closed at 35,411.24, up by 183.55 points (+0.52%) from the previous week. It showed a weekly gain of 2.39% and recorded a 4.99% increase for the month and an 11.01% increase for the year. The NYSE Composite (Symbol: $NYA) ended at 16,369.14, gaining 80.01 points (+0.49%) for the week, 1.96% for the month, and 10.67% for the year. However, the NASDAQ (Symbol: $COMPX) performed less favorably, closing at 14,058.87 with a marginal gain of 26.06 points (+0.19%) for the week but posting a monthly increase of 4.20% and a significant 18.80% surge for the year.
The week ahead promises to be eventful, with an array of earnings reports and key economic data releases scheduled. Investors will closely monitor the earnings reports of major companies like Avis Budget Group (CAR), Diamondback Energy (FANG), SoFi Technologies (SOFI), and zoominfo (ZI) on Monday. Economic data, including the Dallas Fed Manufacturing Activity for July, will also be scrutinized.
Tuesday will see a flurry of earnings reports, including those of industry giants such as Advanced Micro Devices (AMD), Caterpillar (CAT), Pfizer (PFE), Starbucks (SBUX), and Uber Technologies (UBER). Additionally, crucial economic data, such as JOLTS Job Openings and the S&P Global US Manufacturing PMI for July, will influence market sentiment.
On Wednesday, market attention will turn to earnings reports from CVS Health (CVS), PayPal (PYPL), and Shopify (SHOP), among others. Investors will also be closely monitoring the MBA Mortgage Applications and the ADP employment change data for July.
Thursday will be marked by earnings releases from tech giants Apple (AAPL), Amazon (AMZN), and Coinbase (COIN), as well as companies like Airbnb (ABNB) and Moderna (MRNA). Economic indicators, including Challenger job cuts, Nonfarm productivity, and weekly initial jobless claims, will be critical in shaping market sentiment.
The week will conclude with earnings reports from Fisker (FSR), fuboTV (FUBO), and Nikola (NKLA) on Friday. However, the focus will be on crucial economic data releases, such as Nonfarm payrolls for July, the Unemployment rate, Average hourly earnings, Labor force participation rate, and more. These data points will be highly influential in determining the market’s direction.
Given the mixed performances across the major indices and the wide array of earnings reports and economic data scheduled for the upcoming week, investors are likely to remain cautious and closely monitor the market developments. Positive earnings surprises and robust economic data may lead to renewed investor confidence, while disappointing results could trigger bouts of volatility. As the week progresses, market participants will be keenly observing the unfolding events to gain insights into the future trajectory of the stock market.
In financial markets, there is a popular saying: “buy the rumor, sell the fact.” This adage suggests that investors tend to anticipate and speculate on potential outcomes, leading to price movements even before official announcements or events take place. As a result, when the expected results are finally revealed, there may be a tendency for some selling pressure to emerge, particularly in the case of tech giants. The anticipation of positive news may already be factored into the market movements, causing investors to take profits once the actual outcomes become public knowledge. It is essential to note that the opinions and analysis presented in this article do not constitute investment advice. Investing in the market carries inherent risks, and individuals should conduct their research and due diligence before making any investment decisions. So Stock Markets Next Week paint a tricky picture we would advise caution at all times
