Corporate earnings reports
Boeing will release its quarterly report on July 29 before the market open. Boeing shares have been recovering after it plunged dramatically due to the pandemic. The rise in the price of shares has been facilitated by the gradual resumption of air travel, as well as the expectation of a return to operation of the 737 Max model.
Facebook will report on July 29 after the market close. The introduction of lockdown restrictions has led to a surge in user activity on social networks. The number of active users on Facebook, Instagram, WhatsApp, and Messenger surpassed 3 billion for the first time. Analysts believe the digital advertising market will grow as many companies expand their online operations in the wake of the COVID-19 crisis.
Google will release the report on July 30 after the close. Google’s ad revenue may decline due to the downturn in the travel industry caused by the pandemic. About 11% of Google’s search ad revenue last year came from the travel industry. Google plans to cut its own marketing budget by as much as half for the second half of the year and implement a hiring freeze in some departments, a sign the company was expecting a significant shortfall in revenue.to see significant revenue cuts.
Amazon will present the report on July 30 after the market close. Nearly all of the company’s businesses have been benefiting from the pandemic, which has driven demand for e-commerce, cloud computing, and streaming services.
Apple will report on July 30 after the market close. Smartphone sales have declined due to the COVID-19 pandemic and related lockdown restrictions, which could negatively affect the company’s financial results. Due to a sharp increase in coronavirus cases in the United States, Apple has decided to re-close many of its retail stores. In June, the European Commission announced that it was officially launching an antitrust investigation against Apple regarding App Store and Apple Pay policies.
Stock market indices
Stock market indices spent the second half of last week in a downward correction caused by the aggravation of relations between the USA and China. US authorities demanded to close the Chinese consulate in Houston, accusing the staff of this diplomatic mission of espionage. China retaliated by demanding the closure of the US consulate in Chengdu, the capital of Sichuan province.
A new economic stimulus package will be discussed in the United States this week. The positions of Republicans and Democrats on the size of the package and individual programs differ, therefore, the negotiations are aimed at finding a compromise option. The adoption of the economic aid package by Congress will be positive for the stock market.
Currency market: Dollar, Euro
The dollar continues to depreciate against major currencies amid unprecedented asset purchase program launched by the Fed and due to decreasing demand for safe-haven assets.
Euro rose to a 22-month high, boosted by the agreement on the creation of a European recovery fund for 750 billion euros.
Aggravation of relations between the USA and China caused a short-term downward correction of the risky currencies AUD, NZD, and GBP, after which the uptrend resumed.
Main events of the current week
- US Consumer Confidence index will be released on Tuesday.
- On Wednesday, data on consumer price index in Australia, pending home sales in the US, and crude oil inventories will be presented. The results of the Fed meeting will also be announced. The regulator is not expected to change the interest rate. There is a possibility of the introduction of yield curve control, which will boost the stock market and put downward pressure on the dollar.
- On Thursday, data on German GDP and unemployment change will be released, as well as data on US GDP and jobless claims.
- On Friday, data on Chinese Manufacturing PMI, consumer price index in the eurozone, and the GDP of Canada will be published.
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