This week, around 60 S&P 500 firms are set to unveil their second-quarter earnings. The economic calendar includes highly anticipated data on retail sales and the state of the U.S. housing market.
Key Reports Schedule
- Scheduled for Thursday: Taiwan Semiconductor Manufacturing, Johnson & Johnson, Newmont, and American Airlines Group.
- Scheduled for Friday: American Express.
In-Depth Analysis Begins
Tuesday: Retail Sales Data and Housing Market Index
- The Census Bureau will release retail sales data for June. Experts forecast a 0.4% monthly increase in consumer spending, beating May’s growth rate by a tenth of a point.
- Additionally on Tuesday, the National Association of Home Builders will publish its Housing Market Index for July.
Wednesday: Housing Starts Report
- The Census Bureau will report on housing starts in June.
Thursday: Existing-Home Sales and Economic Outlook
- The National Association of Realtors will provide insights into existing-home sales in June.
- The Conference Board concludes the day with the release of its Leading Economic Index for June. This follows 14 consecutive months of declining numbers.
Federal Reserve Signals Manufacturing Dip
- The Federal Reserve Bank of New York unveils the Empire State Manufacturing Survey for July. Analysts estimate a negative 6.5 reading, marking a 13-point decrease from June.
Earnings from Prominent Financial Institutions
- Bank of America, Bank of NY Mellon, J.B. Hunt Transport Services, Lockheed Martin, Morgan Stanley, Novartis, Omnicom Group, PNC Financial Services Group, Prologis, and Synchrony Financial disclose their earnings.
- Additionally, the Census Bureau reports retail sales data for June. Experts anticipate a 0.4% month-over-month growth in consumer spending, surpassing the 0.3% increase seen in May. Excluding automobile sales, spending is projected to rise by 0.3%, a two-tenths improvement over previous estimates. U.S. consumers have proven to be much more resilient than initially predicted by economists at the start of the year.
The National Association of Home Builders Housing Market Index
The National Association of Home Builders (NAHB) is set to release its Housing Market Index for July. Economists are forecasting a reading of 57, which is two points higher than June. This index has been consistently rising for six straight months and is currently at its highest level in nearly a year. It’s worth noting that this positive sentiment persists despite 30-year mortgage rates reaching a two-decade high. The strong demand and lack of existing inventory have significantly contributed to the optimistic outlook among home builders.
Tesla Reports Second-Quarter Results
Shares of Tesla, the electric-vehicle pioneer, have seen an impressive 128% increase in value this year, making them the third best performer in the S&P 500 index. In early July, Tesla announced a record-breaking 466,140 deliveries for the second quarter, representing a remarkable increase of over 80% compared to the previous year.
Quarterly Earnings Reports
Several notable companies will be reporting their quarterly results, including ASML Holding, Baker Hughes, Crown Castle, Discover Financial Services, Elevance Health, Goldman Sachs Group, Halliburton, IBM, Kinder Morgan, Las Vegas Sands, Nasdaq, Netflix, Northern Trust, U.S. Bancorp, and United Airlines Holdings.
Residential Statistics from The Census Bureau
The Census Bureau will be releasing new residential statistics for June. The consensus expects a seasonally adjusted annual rate of 1.48 million privately owned housing starts. This figure represents a decrease of more than 9% compared to May.
Thursday 7/20: Earnings Conference Calls
On Thursday, various companies will be holding conference calls to discuss their earnings. These companies include Abbott Laboratories, American Airlines Group, Capital One Financial, CSX, D.R. Horton, Freeport-McMoRan, Intuitive Surgical, Johnson & Johnson, Kenvue, Marsh & McLennan, Newmont, Philip Morris International, SAP, Taiwan Semiconductor Manufacturing, Travelers, and Truist Financial.
The National Association of Realtors Reports Existing-Home Sales
The National Association of Realtors (NAR) is expected to release its existing-home sales data for June. The consensus estimate is for a seasonally adjusted annual rate of 4.3 million homes sold, which matches the May data.
The Conference Board Leading Economic Index
The Conference Board will be releasing its Leading Economic Index (LEI) for June. Unfortunately, the LEI has experienced a decline for 14 consecutive months, indicating weaker economic activity in the near future. In fact, the Conference Board even projects a recession within the next nine months.
Friday 7/21: Earnings Announcements
American Express, Roper Technologies, and SLB are among the companies set to announce their earnings on Friday.