What to keep an eye on in markets next week
Markets continued to push ahead last week, with the Dow edging higher for a 10th straight day on Friday, its longest streak since 2017. This week, the Fed will announce its latest rate decision, second-quarter earnings reports will come from mega-cap tech companies, and investors will receive major economic data. More below:
The Fed: After 15 consecutive months of raising rates, the Fed hit the pause button last month. Wednesday, experts expect the central bank to hike once more, raising rates by 25 bp, in what could be their last hike. Recent data suggests that a soft landing is possible, as indicators have shown inflation cooling.
Earnings: Big tech earnings will be in focus, with Microsoft and Alphabet reporting on Tuesday, and Meta on Wednesday. Mega-cap names have helped drive a large amount of the gains seen in the market, making these results of particular interest to investors. Other notable companies releasing results include Visa, Coca-Cola Company, Boeing, AT&T, Mastercard, and McDonald’s.
Numbers Watch: Key economic data will be released next week, giving investors more of a view on whether a soft landing is in store. Consumer confidence from The Conference Board will be released Tuesday, and new home sales come on Wednesday. Thursday will see durable goods orders, as well as pending home sales. Friday will provide the personal income report for last month, along with a measure of the Fed’s preferred inflation gauge.