5 Things to observe in markets

Top 5 things to observe in markets following week

Traders must remain cautious about the top 5 things to observe in the markets following week. After the unexpected 50 basis points increase by European Central Bank, huge earnings miss from Snap, Twitter, and Seagate.

This week Federal Reserve is also ready for another rate hike. All of the developments are out in Ukraine, and Economic data will also play important role in the following week.  

Top 5 Things to Observe

Fed Meeting

Inflation reports are on top due to which all of the market prognosticators are expecting 75 basis points increase from the Fed. There is a 20% chance of a 100 basis points rate hike but according to the reports, Fed would not go to that level.

Earnings of Big Tech

The following week is also a week of reporting the earnings of the biggest companies in the world. Most of the companies are from the Technology sector that has been recently beaten down.  

Microsoft and Google will report their earnings on Tuesday. Facebook will release its earnings report on Wednesday after market hours. Amazon’s and Apple’s day is Thursday.

S&P 500

Corporate earnings are also at risk as Fed talks about inflation and recession. There is a big question arises about whether companies able to maintain growth in the current scenario or not.

Most of the industry giants will also report their earnings this week.  

Monday: Whirlpool Corporation, and F5 networks

Tuesday: Coca-Cola, United Parcel Service, McDonald’s, General Motors, General Electric, Raytheon

Wednesday: Boeing, ADP, Bristol-Myers Squibb, Humana, T-Mobile, Ford, Equinix, ServiceNow, Qualcomm, O’Reilly Automotive Inc

Thursday: Honeywell, Comsat, Merk & Co, Mastercard, Pfizer, Altria, Intel, KLA-Tencor, Edwards Lifesciences, DexCom Inc

Friday: Exxon Mobil AbbVie, AstraZeneca, Charter Communications

CPI and GDP

US GDP is expected to be positive, which would turn the technical definition of a recession.

QoQ

Forecast 0.4%

Previous -1.6%

U.S. Core PCE prices are eyeing a growth of 0.5% MoM, from 0.3% last month

Eurozone CPI is expected to reveal an 8.7% reading for July; however, CPI ex Energy and Food is expected to be at 4.7%. As far as GDP is concerned, it is expected at 0.6% QoQ.

Ukraine Russia Developments

Even after signing a deal with Ukraine to allow grain exports out of its Odesa port, Russia continues the fight as their missiles recently attacked the port on Saturday. Russia denies all the recent strikes, and Ukraine is ready to ship the grain to the world, which is viewed as a huge relief to the global food crisis.

Investors keep an eye on global commodities markets. Turkish deal over grain shipments might be the first step towards broader agreements.