Market Holds Steady In Front Of Big Week Of Earnings

Following Friday’s rally, stock futures indicate a modestly higher open. The S&P 500 futures are up 9 points and are trading 0.2% above fair value. The Nasdaq 100 futures are up 35 points and are trading 0.2% above fair value. The Dow Jones Industrial Average futures are up 46 points and are trading 0.2% above fair value.

It’s another busy week in terms of earnings reports and economic data. Apple (AAPL) and Amazon.com (AMZN), which report results after the close on Thursday, will headline the earnings calendar. Notable economic releases include the July ISM Manufacturing Index (Briefing.com consensus 46.8%; prior 46.0%) on Tuesday, the July ISM Non-Manufacturing Index (Briefing.com consensus 53.0%; prior 53.9%) on Thursday, and the July Employment Report on Friday.

In corporate news, Ford (F) is aiming to recall 870K F-150 trucks, according to Reuters. Johnson & Johnson (JNJ) is another top laggard this morning on a report that a US judge ruled against resolving talc claims in bankruptcy, according to Reuters. 

Over the weekend, Minneapolis Fed chair Neel Kashkari (FOMC voter) said in interview he is no longer expecting a US recession, according to CBS News.

China’s Manufacturing PMI remained in contraction in the July reading while Non-Manufacturing PMI decelerated for the fourth consecutive month. Also, China will launch new measures to increase consumption, but stopped short of direct consumer support, according to Bloomberg.

In Europe, eurozone’s GDP expanded 0.3% (expected 0.2%) according to the flash reading for Q2, but Italy’s GDP contracted 0.3% qtr/qtr against expectations for no change.

U.S. economic data today is limited to the July Chicago PMI (prior 41.5) at 9:45 ET.

The 2-yr Treasury note yield is down two basis points to 4.87% and the 10-yr note yield is down one basis point to 3.96%.

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Originally Posted July 31, 2023 – Market holds steady in front of big week of earnings