Week Ahead: Corporate Earnings set to dominate

George Walker, Friday, 17 July 2020

MKT-6871_WA-CorporateEarnings_blog

There is a relatively quiet week ahead on the macro front compared to the week just gone, but that’s not saying much. Last week we saw several high-impact macro releases that revealed some interesting implications of how successful economies have been in staging their recoveries. There are a few data releases, but no real standout one this week, with corporate earnings likely to dominate. Here’s everything you need to know for this trading week ahead.

Asian kicks the week off

We kick off in Asia with imports and exports data released overnight as well as the minutes from the latest Bank of Japan monetary policy meeting. Although these minutes only look back at the decisions made last week, there could be subtle changes in the language use which investors will scrutinise to see if there are any unnoticed changes in forward guidance on the horizon.

We also see an interest rate decision from the Peoples Bank of China. Last time out interest rates were maintained at 3.85% for the second straight month. This indicates that they believe the cuts made earlier in the year were enough to support the world’s second largest economy through the recovery from the coronavirus pandemic. Expectations are that there will be no change in the rate once again, we have however, seen in the past that surprise cuts can be made. Investors will want to see whether the PBoC remains confident of their current policy or if they believe they will need to do more to boost growth.

Tuesday sees national consumer price index inflation data out of Japan in the early hours as well as the minutes from the Reserve Bank of Australia’s recent meeting accompanied by a speech from the Governor of the central bank. Whenever a central bank Governor makes a speech, this has potential to cause large volatility in the native currency,so traders of AUD will need to be mindful of exposure held overnight.

US, Canada and European data

We get weekly US crude oil inventory data at 21:30 which saw a huge draw down surprise last week. As a result, the price of oil rallied so storage levels are once again coming back in focus for oil traders.

The only notable data released on Wednesday will be in the form of consumer price index inflation data from Canada before the second of the weekly oil inventory data out of the US.

Initial and continuing jobless claims hit the wires from the US on Thursday, which since the pandemic took hold have been increasingly important when painting a picture of the health of the US employment market so traders of US indices and the USD will need to take note of these figures.

We round off the week with Manufacturing and Services PMI data from Germany and the eurozone, the UK and the United States. Collectively, these numbers make up a country’s Gross Domestic Product so we could be in for an interesting end to the trading week.


Corporate earnings

Earnings season is now in full swing in the US as corporate earnings continue to dominate new wires. The coming week sees some of the largest companies in the world report earnings and investors will want to see how they have been affected by the economic lockdown and which are best positioned for the expected recovery.

Just some of the corporate behemoths set to report this week are Novartis, Coca-Cola, Texas Instruments, Lockheed Martin, UBS, Microsoft, Tesla, Amazon, Intel, AT&T, Total S.A, Twitter, Verizon and many more.

Many of these companies have seen large recoveries in shares prices since the selloff in March with some, such as Amazon and Microsoft, hitting record highs as much of the world has moved online for business and personal means.

Although quarterly earnings will be in focus, investors will be more likely to focus on forward guidance so this is where the volatility may come from. We can see large gaps up or down so traders/holders of these equities will need to take note of dates of the results as orders can be filled at different levels than desired.

Individually, these corporate results have the ability to shift sentiment and subsequently move markets as a whole, particularly US indices, so with so many on the horizon, be sure to take note when they are expected to report.

All times indicated are BST.


ECONOMIC CALENDAR (all times are BST)

Monday, 20 July

00:50 JPY Imports
00:50 JPY Exports
00:50 JPY Merchandise Trade Balance Total
00:50 JPY BoJ Monetary Policy Meeting Minutes
02:30 CNY PBoC Interest Rate Decision
07:00 GER Producer Price Index

UK Company Announcements:

N/A

US Company Announcements:

Koninklijke Philips N.V.
Candence Design Systems

ETX Capital Webinar:

19:00 ETX Trading Strategy Course 3/4: The practical aspects of trading

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Tuesday, 21 July

00:30 JPY National Consumer Price Index
00:30 JPY National CPI ex Food, Energy
00:30 JPY National CPI ex-Fresh Food
02:30 AUD RBA Meeting Minutes
03:30 AUD RBA’s Governor Lowe Speech
07:00 CHF Imports
07:00 CHF Exports
07:00 CHF Trade Balance
09:30 GBP Public Sector Net Borrowing
13:30 USD Chicago Fed National Activity Index
13:30 CAD Retail Sales
13:30 CAD Retail Sales ex Autos
13:55 USD Rebook Index
21:30 USD API weekly Crude Oil Stock

UK Company Announcements:

N/A

US Company Announcements:

Novartis AG
Coca-Cola Company
Texas Instruments Incorporated
Philip Morris
Lockheed Martin
Prologis Inc
Intuitive Surgical Inc
Canadian National Railway
America Movil, S.A.B de C.V.
The Charles Schwab Company
UBS AG
Capital One Financial

Wednesday, 22 July

01:30 AUD Westpac Leading Index
02:30 AUD Retail Sales Preliminary
13:30 CAD Consumer Price Index
13:30 CAD Consumer Price  Index - Core
13:30 CAD BoC Consumer Price Index Core
14:00 USD Housing Price Index
15:00 USD Existing Home Sales
15:30 USD EIA Crude Oil Stocks Change

UK Company Announcements:

Stagecoach

US Company Announcements:

Microsoft Corporation
Tesla Inc
Thermo Fisher Scientific Inc
CSX Corporation
ABB Ltd
Biogen Inc
Sempra Energy
HCA Healthcare Inc
Kinder Morgan Inc
Chipotle Mexican Grill Inc

ETX Capital Webinar:

18:30 2-Hour Special Event: Advanced technical analysis

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Thursday, 23 July

02:30 AUD National Australia Bank’s Business Confidence
07:00 GER Gfk Consumer Confidence Survey
13:30 USD Initial Jobless Claims
13:30 USD Continuing Jobless Claims
15:00 EUR Consumer Confidence
15:30 USD EIA Natural Gas Storage Change
23:45 NZD Imports
23:45 NZD Exports
23:45 NZD Trade Balance

UK Company Announcements:

Croda International
Howden Joinery
Relx
Unilever
Sage Group

US Company Announcements:

Amazon.com Inc
Intel Corporation
AT&T Inc
T-Mobile US Inc
Union Pacific Corporation
Total S.A.
Starbucks Corporation
The Blackstone Group
Air Products and Chemicals Inc
The Travelers Companies Inc
Hershey Company
Twitter Inc

ETX Capital Webinar:

19:00 Crisis Control Webinar Series (from the Corellian Trading Academy): TBC

REGISTER HERE

Friday, 24 July

00:00 AUD Commonwealth Bank Services PMI
00:00 AUD Commonwealth Bank Manufacturing PMI
00:00 AUD Commonwealth Bank Composite
07:00 GBP Retail Sales
07:00 GBP Retail Sales ex-Fuel
08:30 GER Markit Manufacturing PMI
08:30 GER Markit Services PMI
08:30 GER Markit PMI Composite
09:00 EUR Markit Manufacturing PMI
09:00 EUR Markit Services PMI
09:00 EUR Markit PMI Composite
09:30 GBP Markit Manufacturing PMI
09:30 GBP Markit Services PMI
14:45 USD Markit Manufacturing PMI
14:45 USD Markit Services PMI
14:45 USD Markit PMI Composite
15:00 USD New Home Sales
15:00 USD New Home Sales Change
18:00 USD Baker Hughes US Oil Rig Count

UK Company Announcements:

Centrica

US Company Announcements:

Verizon Communications Inc
NextEra Energy Inc
Honeywell International Inc
Fomento Economico Mexicano S.A.B de C.V.
American Express Company

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