What to expect in the week ahead (TSLA, AAPL, GOOGL, MSFT)

Moomoo Breakfast US wrote a column · Jul 26, 2021 10:17

What to expect in the week ahead (TSLA, AAPL, GOOGL, MSFT)

Weekly market recap

For the week, major US indexes set new records. $Dow Jones Industrial Average (.DJI.US)$ gained 1.08%; the $S&P 500 Index (.SPX.US)$is headed for a weekly gain of 1.96%, and the $Nasdaq Composite Index (.IXIC.US)$ gained the most by 2.84% this week.

All three of the major averages finished at record closing highs last week after the markets tumbled at the start of the week on concerns about the spread of the delta variant of Covid and how it would potentially hinder the economic recovery. The uncertainty briefly sent bond yields lower, and investors jumped into tech stocks. Both bonds and equities rebounded quickly by the end of the week.

Tech stocks rose last week on better-than-expected second-quarter earnings reports, as well as the continued spread of the delta variant. Twitter and Snap each surged Thursday following better-than-expected second-quarter earnings reports. $Twitter (Delisted) (TWTR.US)$ ended Friday 3% higher, while $Snap Inc (SNAP.US)$ shot up 24%.

Here's a look at the returns of S&P 500 sectors.

Source: jhinvestments

The week ahead in focus
It's the busiest week of the second-quarter earnings season. About one-third of S&P 500 companies are scheduled to report. Big tech giants $Apple (AAPL.US)$, $Alphabet-C (GOOG.US)$ and $Microsoft (MSFT.US)$ are all set to report on Tuesday, and $Meta Platforms (FB.US)$, and $Amazon (AMZN.US)$ will also report later in the week.

Investors will be watching the Fed's two-day policy meeting, beginning Tuesday. The Federal Open Market Committee and the Board of Governors are expected to issue a statement on the stance of monetary policy Wednesday. On Thursday the Commerce Department will report second-quarter GDP data.

Monday 7/26
$Lockheed Martin (LMT.US)$ and $Tesla (TSLA.US)$ report quarterly results.

The Census Bureau reports new single-family home sales for June. Economists forecast a seasonally adjusted annual rate of 800,000 new homes sold, 4% more than May's 769,000.

Tuesday 7/27

It's a big day for megacap tech earnings. $Alphabet-A (GOOGL.US)$, $Apple (AAPL.US)$, and $Microsoft (MSFT.US)$ will release quarterly results. The three companies are among the five largest globally by market value, worth a combined $6.4 trillion.

The Conference Board releases its Consumer Confidence Index for July. Consensus estimate is for a 124 reading, lower than June's 127.3. The June figure was the highest for the index since the beginning of the pandemic.

S&P CoreLogic releases its Case-Shiller National Home Price Index for May. Expectations are for a 16.4% year-over-year rise, after a 14.6% jump in April. The April spike was a record for the index going back to 1988, when data were first collected.

Wednesday 7/28

$Advanced Micro Devices (AMD.US)$, $Boeing (BA.US)$, $Meta Platforms (FB.US)$, $PayPal (PYPL.US)$, $Pfizer (PFE.US)$, $Qualcomm (QCOM.US)$ and $Shopify (SHOP.US)$ will release quarterly results.

The Federal Open Market Committee announces its monetary-policy decision. The FOMC is expected to leave the federal-funds rate unchanged near zero. Wall Street expects the central bank to announce a timeline for reducing its bond purchases, currently about $120 billion a month, at some time between now and the September meeting.

Thursday 7/29
$Amazon (AMZN.US)$, $MasterCard (MA.US)$, $Pinterest (PINS.US)$ and $Twilio (TWLO.US)$ hold conference calls to discuss earnings.
The Bureau of Economic Analysis reports its preliminary estimate of second-quarter gross domestic product. Economists forecast a 9.1% seasonally adjusted annual growth rate, following a 6.4% increase in the first quarter. The Federal Reserve currently projects 7% GDP growth for 2021, which would be the fastest rate of growth since 1984.

Friday 7/30
$Exxon Mobil (XOM.US)$, $Procter & Gamble (PG.US)$, and $Chevron (CVX.US)$ report quarterly results.

Source: CNBC, Barron's

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