While it’s quiet on the Australian data front, the US is busy. Here’s your investor calendar for this week with what to watch on local and international markets.
US inflation lands on Tuesday and the American June-quarter earnings season opens with the big Wall Street banks. Closer to home, a heavy run of ASX quarterly updates from the major miners and financials fills out the week. Here’s what to watch.
As usual, this calendar comes to us from the experts at CommSec.
Monday July 13
US Federal Budget balance (June)
A deficit of US$293 billion was recorded in May.
Tuesday July 14
Westpac consumer sentiment (July)
The index fell 2.9% month-on-month in June.
NAB business confidence (June)
Business confidence stood at -14 in May.
US NFIB Small Business Index (June)
The index is tipped at 95.5.
US consumer price index (June)
Consumer prices are predicted to rise 3.9% year-on-year.
US Federal Reserve Chair Kevin Warsh speaks
He testifies before a government committee.
Wednesday July 15
US producer price index (June)
Producer prices are forecast flat at 0.0% month-on-month.
US Empire State manufacturing survey (July)
The survey is predicted at 10.0.
Thursday July 16
Melbourne Institute inflation expectations (July)
Expectations ran at 5.5% in June.
US retail sales (June)
Retail sales are expected to rise 0.3% month-on-month.
US weekly jobless claims
Claims totalled 1.814 million in the prior week.
Friday July 17
Europe consumer price index (June)
Consumer prices rose 2.8% year-on-year in May.
US housing starts (June)
Starts are tipped at 1.32 million.
US industrial production (June)
Production is predicted to rise 0.2% month-on-month.
Key themes to watch
US earnings season kicks off: CommSec’s James Gruber says the US June-quarter earnings season ramps up this week, with the major Wall Street banks first to report. He notes the financials sector has climbed about 16% over the past six weeks, on rising expectations that the US could raise interest rates this year. Banks are primary beneficiaries of higher rates, Gruber says, because they can quickly lift what they charge on mortgages and credit cards while deposit rates adjust more slowly, widening their margins. JPMorgan, Bank of America, Goldman Sachs, Wells Fargo and Citigroup report Tuesday; J&J, Morgan Stanley, BlackRock, Bank of New York and United Airlines on Wednesday; GE Aerospace, UnitedHealth, Netflix, Abbott Labs, Intuitive Surgical, Prologis and American Airlines on Thursday; and Travelers on Friday.
Airlines on a tear: Gruber flags airline earnings as another to watch, with many carrier share prices running hard. He points to American Airlines, up almost 75% since late March and trading well above its pre-Iran War levels.
Megacap tech is next: The big US technology names start reporting the following week, and Gruber says expectations are high, with second-quarter earnings growth forecast at about 48% year-on-year, driving much of the 24% profit growth expected from the S&P 500.
CPI and the new Fed chair: Gruber says the key economic datapoint of the week is the US consumer price index on Tuesday, forecast at 3.9% year-on-year. Investors will also be watching new Federal Reserve Chair Kevin Warsh’s testimony before a government committee for any hints on where rates head next.
Local updates: A run of ASX companies deliver quarterly updates, including Ampol, Auckland International Airport, Evolution Mining and Rio Tinto on Wednesday, and AMP, BHP and Netwealth on Thursday. Alcoa reports its second-quarter results on Thursday. Several ASX names trade ex-dividend, including Beacon Lighting and Collins Foods on Monday and Metcash on Tuesday.
Check back next week for the latest investor calendar, only on Switzer.
This article is general in nature and is not a recommendation to buy or sell any security.
