Week Ahead: Earnings, ECB and US GDP to drive markets

Equities
Week Ahead

ECB

The European Central Bank (ECB) provides the main headline risk event for traders as we look at whether policymakers are ready to pull the trigger on a fresh round of stimulus.Options are limited for the ECB but markets are increasingly betting it will choose to cut interest rates this year and may restart its bond-buying programme.

US GDP

Estimates for US Q2 growth were revised up after better-than-expected retail sales figures last week. The question is whether there is enough strength in the quarterly growth numbers to make the market rethink just how much the Fed will cut rates. The first reading of the Q2 GDP estimate is due on Friday.

Facebook

Earnings season hits full speed with a slew of corporate updates. Top of the bill is Facebook, which knocked it out the park in Q1. The consensus expected Q2 earnings per share (EPS) is $1.87, up 7.5% year-on-year. Sales are seen rising around 25% to $16.5 billion. But can advertising growth offset worries about regulation and higher costs?

Tesla  

Last month CEO Elon Musk said deliveries in the second quarter hit a record 95,200 cars, well ahead of the 91k expected by Wall Street. Key questions are whether achieving these production targets is leaving the business nursing additional costs, and whether management sticks to its guidance to return to profitability in Q3.  

Boeing  

How much has the 737 MAX grounding affected sales and earnings? We should find out more about how much of a it Boeing expects to take when we get the second quarter numbers on Thursday. Boeing also has exposure to tariffs and has led to analysts downgrading the stock lately.  

Corporate Diary

Earnings season continues this week so here’s your head’s up on the names to watch. The following companies are set to publish their quarterly earnings reports this week:

Pre-Market23rd JulyLockhead Martin Corp – Q2 Earnings
23rd JulySantander SA – Q2 Earnings
After-Market23rd JulyVisa Inc – Q2 Earnings
08.00 BST23rd JulyUBS – Q2 Earnings
After-Market23rd JulySnap Inc -Q2 Earnings
Pre-Market 23rd JulyCoca-Cola C – Q2 Earnings
After-Market (Paris)24th JulyLVMH – Q2 Earnings
24th JulyAMD – Q2 Earning
12.00 BST24th JulyGlaxoSmithKline Plc -Q2 Earnings
After-Market24th JulyFacebook – Q2 Earnings
After-Market24th JulyFord Motor Co – Q2 Earnings
24th JulyDeutsch Bank – Q2 Earnings
Pre-Market24th JulyUnited Parcel Service – Q2 Earnigns
Pre-Market24th JulyCaterpillar Inc Q2 Earnings
After-Market24th JulyTesla – Q2 Earnings
Pre-Market24th JulyAT&T Inc – Q2 Earnings
After-Market25th JulyAlphabet – Q2 Earnings
Pre-Market25th JulyBoeing Co – Q2 Earnings
After-Market25th JulyStarbucks Corp – Q3 Earnings
Pre-Market25th JuyComcast – Q2 Earnings
07.00 BST25th JulyUnilever – Q2 Earnings
25th JulyTelefonica
13.00 BST25th JulyTOTAL SA – Q2 Earnings
06.15 BST26th JulyNestle – Q2 Earnings
Pre-Market26th JulyMcDonalds Corp – Q2 Earnings
Pre-Market26th JulyTwitter – Q2 Earnings
XRay

Don’t miss the expert analysis and opinion, live-streamed direct to your platform. Here are the highlights from XRay this week.

17.00 GMT22nd JulyBlonde Markets
15.30 GMT23rd JulyAsset of the Day: Bullion Billions
19.00 GMT23rd JulyLIVE: Trader Training
11.45 GMT25th JulyECB Decision LIVE
Key Economic Events

Watch out for the biggest events on the economic calendar this week:

From 07.15 GMT24th JulyEurozone flash PMIs
13.45 GMT24th JulyUS flash manufacturing PMI
08.00 GMT25th JulyGerman IFO report
11.45 GMT25th JulyECB Interest Rate Decision
12.30 GMT 25th JulyECB Press Conference
12.30 GMT26th JulyUS Q2 GDP first reading