Overnight price action was similar to what we have experienced over the past 2 months. Asian markets were almost all lower, with China leading the way on the downside (Shanghai Composite down 2.5%). Meanwhile, SPX Futures remained bid throughout the session, as global investors continue to shift money to the U.S. and out of other markets. When European equity markets opened higher, SPX Futures rose to their highest level since Bernanke’s last press conference.
The main events for this week are the FOMC Minutes (2pm EST today), Bernanke’s speech (after the close) on Wednesday, and the start of earnings season. In preparation, here are the notable earnings releases over the next 2 weeks:
- AA – July 8th after the close
- FDO – July 10th before the open
- YUM – July 10th after the close
- JPM – July 12th before the open
- WFC – July 12th before the open
- C – July 15th before the open
- GS – July 16th before the open
- JNJ – July 16th before the open
- KO – July 16th before the open
- YHOO – July 16th after the close
- ABT – July 17th before the open
- AXP – July 17th after the close
- BAC – July 17th before the open
- EBAY – July 17th after the close
- INTC – July 17th after the close
- IBM – July 17th after the close
- AMD – July 18th after the close
- COF – July 18th after the close
- GOOG – July 18th after the close
- MSFT – July 18th after the close
- NUE – July 18th before the open
- UNH – July 18th before the open
- VZ – July 18th before the open
- GE – July 19th before the open
- HON – July 19th before the open
- SLB – July 19th before the open
The bulk of the major company results are next week, particularly in the latter half of the week when the large tech companies start reporting (INTC, IBM, GOOG, MSFT). This week’s main reports are on Friday, with WFC and JPM kicking off the earnings season for the financials sector.
From a macro perspective, I view the FOMC minutes release as well as Bernanke’s speech, both on Wednesday, as the most important market mover this week. The implications of earnings season for the broader market won’t likely be felt until late next week when more of the mega-caps start reporting.