This week’s market activity is expected to be relatively subdued on the earnings front, as over 90% of S&P 500 companies have already reported. However, a few key reports will still draw investor attention. As a leader in the cybersecurity space, Palo Alto Networks (NASDAQ:PANW) will offer valuable insights into enterprise spending and the resilience of corporate budgets when it reports on Monday. Investors will also be watching two of the largest U.S. retailers, Target (NYSE:TGT) and Walmart (NYSE:WMT), to get a sense of the consumer’s health. Target is scheduled to report on Wednesday before the market opens, followed by Walmart on Thursday. Their results will serve as a pulse check on local and national consumer spending. Additionally, two of China’s tech giants, Baidu Inc (NASDAQ:BIDU) and Alibaba Group (NYSE:BABA), are set to report on Wednesday and Thursday, respectively.
The economic calendar is light, with the primary focus on the release of the minutes from the Federal Open Market Committee’s (FOMC) July meeting on Wednesday. While the Fed’s recent communication has been clear on its decisions and path, the minutes may provide additional color. Later in the week, Fed Chair Powell is scheduled to speak at the Jackson Hole Economic Symposium. His remarks are not expected to deviate significantly from the cautious tone he has previously adopted. Of particular importance, will be the S&P Global Flash PMI, set to be released on Thursday. This report may hold more weight than in the past, especially after the recent Producer Price Index (PPI) data came in hotter than expected, raising renewed inflation concerns.
Trade tensions remain a persistent theme under the current administration. Last week, the U.S. and China agreed to a 90-day extension of their trade truce, which provides a brief reprieve from escalating tariffs. However, new volatility was introduced by the President’s announcement of a potential 300% tariff on semiconductors. The lack of specific details and the seemingly arbitrary nature of the action have led to a risk-off sentiment in the semiconductor sector. This approach, characterized by a lack of a clear long-term strategy and what appears to be a link between exemptions and personal gifts, makes it difficult for markets to anticipate and price in the impact of these policies. Further geopolitical uncertainty arises from the recent meeting between the President and Russia’s Vladimir Putin. The lack of a clear resolution may lead to new tariffs for U.S. trading partners that continue to do business with Russia, such as India, which has already been threatened with 50% tariffs on its exports. Any escalation in these trade conflicts could fuel inflation fears, which are already beginning to surface.
Monday
–
Earnings: PANW
Tuesday
–
Earnings: HD
Wednesday
FOMC Meeting Minutes
Earnings: TGT BIDU
Thursday
S&P Flash PMI
Earnings: WMT BILI BABA WDAY
Friday
Jackson Hole Economic Symposium
–
Tracking This Week
Subscribe to get access
Read more of this content when you subscribe today.
Salesforce Inc (NYSE:CRM) stock has been in a significant downturn, a clear sign that investors are questioning its growth strategy and leadership. The company’s recent decline near 52-week lows suggests a lack of confidence in its ability to navigate the current market and stay connected with its customers. The company is a dominant player in its space and should not be counted out. With earnings a month away, speculation could push the stock higher from its recent lows.
IBM Corporation (NYSE:IBM) has been on a downward slide since its Q2 earnings report and guidance. Investors may have become overly enthusiastic leading into the report, and the results, while showing growth, fell short of those elevated expectations. The stock has experienced a rapid run recently and it appears to have found a bottom. This could present a good time to accumulate.
Tesla Inc (NASDAQ:TSLA) continues to hold strong despite a lot of negative news. Sales have been stagnant in major markets, with only gains in smaller markets like Norway, where first-half sales topped 13,000. This is a very small number compared to a week’s sales in China which is roughly the same and down about 15% this year. The stock’s behavior suggests it trades like a meme stock, and any positive news, whether based in reality or not, like a robotaxi expansion, could send the share price higher.
