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Title: Marketmind: Earnings to the rescue?



Jul 26, 2022 03:15AM ET


By: AnalysisWatch


An overview of the upcoming market day


The corporate earnings season in Europe accelerates on Tuesday, and the data so far suggests that rising costs and slowing demand are starting to have an impact.


A few weeks ago, traders feared that the next stock market decline would be triggered by the rewriting of high earnings expectations.


Swiss bank UBS posted a smaller-than-expected rise in second-quarter net profit, while Logitech International reported a 38% drop in first-quarter adjusted profit and cut its forecast for the full year of 2023.


According to Goldman Sachs, about 34% of European companies reporting second-quarter results missed consensus by at least 5%, the highest proportion of misses since the sovereign debt crisis in 2010.


Trading in the markets was quiet as investors braced for updates from a number of European companies this week, as well as some of the big U.S. technology companies, including Microsoft on Tuesday.


Stocks in Europe and the United States were set to fall modestly, while the dollar held not far from two-year highs.


The start of the Federal Reserve's two-day meeting, which ends Wednesday, also kept traders on edge, with policymakers expected to raise interest rates by 75 basis points. Market attention will be focused on the future path of interest rates.


Key events that should give markets more guidance on Tuesday:


The U.S. Federal Reserve begins a two-day meeting.


The U.S. home price index for May


U.S. new home sales data


The US 5-year Treasury auction


The Federal Reserve Bank of Philadelphia released the July survey of business prospects in the non-manufacturing sector.


Nigerian and Hungarian central bank meetings


UBS, Lindt, ITV, Unilever, Michelin, Deutsche Boerse, Vivendi, LVMH, Easyjet, Unicredit


United Parcel Service Inc, General Electric, 3M Company, Xerox Corp, Coca-Cola, McDonald's, GM, Microsoft, Google, and Boston Properties

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