US Equity Investors to Focus on Quarterly Earnings, Nonfarm Payrolls, Iran Geopolitics This Week

MT Newswires Live
08/03

US equity investors are expected to focus on earnings, labor market data, and messaging from top Federal Reserve officials this week while keeping an eye on crude oil prices amid geopolitical developments in the Middle East.

* Palantir Technologies (PLTR), Space Exploration Technologies (SPCX), Advanced Micro Devices (AMD), SanDisk (SNDK), and Take-Two Interactive Software (TTWO) are among the companies reporting their quarterly results next week. The so-called AI trade got a boost last week after Microsoft (MSFT) and Amazon.com (AMZN) showed blowout sales growth in artificial intelligence-related products and services.

* Economic data this week includes non-farm payrolls, job openings, Challenger job cuts, jobless claims, and the labor turnover survey, and ISM manufacturing and services purchasing managers' indexes.

* Fedspeak resumes after the quiet period last week ahead of the central bank's July 28-29 policy meeting, with Fed Governor Lisa Cook and San Francisco Fed President Mary Daly both speaking on Wednesday, according to a note from Yardeni Research.

* "They were not among the three hawkish dissenters at last week's FOMC meeting," Ed Yardeni, president of Yardeni Research, said, referring to the Fed's policy decision to stay on hold for the fifth consecutive meeting. "So it will be interesting to see which way they lean. That might give the financial markets some forward guidance, which Fed Chair Kevin Warsh refuses to do!"

* President Donald Trump said a deal with Iran is imminent, with talks set to begin Monday, Al Jazeera, a Middle Eastern broadcaster, reported early Monday. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Tehran is not currently holding talks with the US, and added the new Hormuz maritime route is being discussed with Oman, the news report said.

* The front-month US West Texas Intermediate crude oil sank 5.8% to $79.76 a barrel early Monday, helping push the US 10-year Treasury yield lower by 5.3 basis points to 4.69%.

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