As we gear up for the week ahead on Wall Street, investors will be closely following a bevy of significant events. Earnings reports from market giants including Microsoft, Morgan Stanley, Bank of America, IBM, Tesla, and Netflix will be in the spotlight, potentially leading to substantial market movements.
Furthermore, economic data releases are also on the agenda. The Empire Manufacturing data, along with June's retail sales and home sales reports, are anticipated to draw substantial attention from the market participants, revealing key insights into the current state and likely future direction of the economy.
With such a dense schedule of releases and reports, next week promises to be action-packed. So, stay informed!
🇺🇸 June’s Retail Sales
Mark your calendars for Tuesday, July 18th, for the release of the highly anticipated June Retail Sales report. The US Census Bureau will be releasing the details at 15:30 GMT+3. This essential report provides a month-over-month percentage change in the total receipts of retail stores, serving as a vital macroeconomic indicator. It effectively monitors consumer demand for products and enables economists to assess inflationary pressures, shaping the projection of consumer inflation in the subsequent months.
🇺🇸 June’s Industrial Production
Following closely on the heels of the retail sales report on Tuesday, July 18th, is the release of June's Industrial Production figures at 16:15 GMT+3. Compiled by the Federal Reserve, this report highlights the monthly changes in the output from key US industries such as manufacturing, mining, and utilities.
This vital release has the potential to impact assets such as the Dow Jones Industrial Index, a bellwether for industrial companies, and the US Dollar, reflecting the strength of the American economy.
🇬🇧 CPI & Core CPI m/m
Keep an eye on the UK CPI & Core CPI m/m report set to be released on Wednesday, July 19th, at 9:00 GMT+3. The Consumer Price Index (CPI) measures the average price change over time that consumers pay for a basket of goods and services, while the Core CPI excludes the volatile food and energy prices. It's anticipated that the monthly figure will rise while the annual figure will decrease. This development could occur as the GBP/USD pair maintains a bullish bias above 1.3000. The release could either validate this upward trend or trigger a downturn in the pair's quotations.
🇺🇸 June’s Housing Starts and Building Permits
"Continue to stay informed on Wednesday, July 19th, with the release of June's Housing Starts and Building Permits reports at 15:30 GMT+3. These reports, issued by the US Census Bureau, are reliable indicators of the current and projected trends in the US housing market. Housing Starts monitors the number of new construction projects, while Building Permits tracks the number of authorizations for new construction projects. Together, these metrics indicate corporate investment trends, given the housing industry's role in around a quarter of total investment spending and 5% of the overall economy.
As such, they are leading indicators of the broader economy, measuring current real estate market demand and forecasting future construction industry performance. The release of these reports can influence various US Dollar currency pairs, as well as major US indices, including the Nasdaq, Dow Jones, and SPX500.
🇬🇧 Retail Sales m/m
Wrapping up the week is the UK Retail Sales m/m report. The previous release indicated a 0.3% increase, while the current forecast suggests a slower growth rate of 0.1%. This metric provides an aggregated measure of sales of retail goods over a specific time period and serves as an important indicator of consumer spending. The results of this report may reflect the aftermath of the earlier CPI & Core CPI m/m announcement. Hence, market participants need to watch out for this announcement as it could potentially sway currency valuations and other economic forecasts.
That's it for this week! 👋
