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Big Numbers Ahead: Q2 Earnings, Fed Meeting, Jobs Week
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Monday, July 29th, 2024
It’s another big week for the markets, but starting slowly again. This is Jobs Week — with employment figures from JOLTS data Tuesday through the Employment Report from the federal government on Friday morning, and private-sector ADP (ADP) jobs Wednesday and Weekly Jobless Claims Thursday. It’s also Fed week, with the two-day meeting of the Federal Open Market Committee (FOMC) beginning tomorrow and ending Wednesday with an updated Fed funds rate and press conference with Chair Jerome Powell.
These jobs numbers are mostly expected to dwindle, month over month. Job openings from the JOLTS survey for June look to tick down to 8.0 million — a reduction from peak levels a couple years back of roughly 50%. Jobless claims for the week, while in a new tier notably above 200K per week, are still expected to come down by a couple thousand week over week, while nonfarm payrolls on Friday look to come in sub-200K for only the second time in the past 8 months. Only the private-sector ADP report is supposed to chart gains to 168K new jobs filled from the 150K a month ago.
Beyond this, we have lots of other data coming out. Case-Shiller home prices for May, Pending Home Sales, Consumer Confidence, S&P and ISM Manufacturing results are due throughout the week, in addition to the Fed once again not lowering interest rates from the 5.25-5.50% range they’ve been at for a full year now. Some tepid arguments had been made about the Fed possibly knocking off an unexpected 25 basis points (bps) on Wednesday, but the smart money has the first rate cut since the start of the pandemic not happening until the September meeting.
McDonald’s (MCD - Free Report) shares are up this morning. This, even as the company missed estimates on both top and bottom lines this morning on its Q2 report, with earnings of $2.97 per share missing the $3.08 in the Zacks consensus, and the $3.17 reported in the year-ago quarter. Revenues of $6.49 billion was beneath estimates by -2.42%. Perhaps the trade up is because, at -75% year to date, McDonald’s shares have priced in their bad news. Plus, Digital sales and Delivery sales were up for the company, pointing toward better things in the future. For more on MCD’s earnings, click here.
ON Semiconductor (ON - Free Report) shares are up +9% on its earnings report. Earnings of 96 cents per share outpaced expectations by 4 cents for the quarter, on revenues of $1.74 billion, which notched ahead of estimates by +0.20%. This performance erases much of the year-to-date hole it has dug, -13%. It’s a good day to have reported earnings, too, with the Nasdaq up +160 points at this hour in pre-market trading. For more on ON’s earnings, click here.
It’s also the biggest week for Q2 earnings so far. Microsoft (MSFT - Free Report) puts out results Tuesday after the bell and Apple (AAPL - Free Report) and Amazon (AMZN - Free Report) come out Thursday afternoon, the first day of August. In between, we’ll see Meta Platforms (META - Free Report) , Procter & Gamble (PG - Free Report) , AMD (AMD - Free Report) , Merck (MRK - Free Report) and JetBlue (JBLU), among many, many others.
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Big Numbers Ahead: Q2 Earnings, Fed Meeting, Jobs Week
Monday, July 29th, 2024
It’s another big week for the markets, but starting slowly again. This is Jobs Week — with employment figures from JOLTS data Tuesday through the Employment Report from the federal government on Friday morning, and private-sector ADP (ADP) jobs Wednesday and Weekly Jobless Claims Thursday. It’s also Fed week, with the two-day meeting of the Federal Open Market Committee (FOMC) beginning tomorrow and ending Wednesday with an updated Fed funds rate and press conference with Chair Jerome Powell.
These jobs numbers are mostly expected to dwindle, month over month. Job openings from the JOLTS survey for June look to tick down to 8.0 million — a reduction from peak levels a couple years back of roughly 50%. Jobless claims for the week, while in a new tier notably above 200K per week, are still expected to come down by a couple thousand week over week, while nonfarm payrolls on Friday look to come in sub-200K for only the second time in the past 8 months. Only the private-sector ADP report is supposed to chart gains to 168K new jobs filled from the 150K a month ago.
Beyond this, we have lots of other data coming out. Case-Shiller home prices for May, Pending Home Sales, Consumer Confidence, S&P and ISM Manufacturing results are due throughout the week, in addition to the Fed once again not lowering interest rates from the 5.25-5.50% range they’ve been at for a full year now. Some tepid arguments had been made about the Fed possibly knocking off an unexpected 25 basis points (bps) on Wednesday, but the smart money has the first rate cut since the start of the pandemic not happening until the September meeting.
McDonald’s (MCD - Free Report) shares are up this morning. This, even as the company missed estimates on both top and bottom lines this morning on its Q2 report, with earnings of $2.97 per share missing the $3.08 in the Zacks consensus, and the $3.17 reported in the year-ago quarter. Revenues of $6.49 billion was beneath estimates by -2.42%. Perhaps the trade up is because, at -75% year to date, McDonald’s shares have priced in their bad news. Plus, Digital sales and Delivery sales were up for the company, pointing toward better things in the future. For more on MCD’s earnings, click here.
ON Semiconductor (ON - Free Report) shares are up +9% on its earnings report. Earnings of 96 cents per share outpaced expectations by 4 cents for the quarter, on revenues of $1.74 billion, which notched ahead of estimates by +0.20%. This performance erases much of the year-to-date hole it has dug, -13%. It’s a good day to have reported earnings, too, with the Nasdaq up +160 points at this hour in pre-market trading. For more on ON’s earnings, click here.
It’s also the biggest week for Q2 earnings so far. Microsoft (MSFT - Free Report) puts out results Tuesday after the bell and Apple (AAPL - Free Report) and Amazon (AMZN - Free Report) come out Thursday afternoon, the first day of August. In between, we’ll see Meta Platforms (META - Free Report) , Procter & Gamble (PG - Free Report) , AMD (AMD - Free Report) , Merck (MRK - Free Report) and JetBlue (JBLU), among many, many others.
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