Markets in a Minute - All the Small Things
By: Zac Martin
Author: Zac Martin, Investment Associate
Week Ending July 29th – All the Small Things
- First preliminary reading for Q2 Real GDP beat analyst expectations, accelerating to 2.8% quarter over quarter growth. The increase was led by a 2.3% increase in personal consumption and an 8.4% increase in domestic investment.
- Durable orders for June negatively surprised expectations falling to -6.6% month to month. Excluding transportation, new orders increased by 0.5%, transportation equipment saw a decrease of 20.5%.
- Personal Consumption Expenditures for June were inline with analyst expectations, decreasing to 2.5% year over year. Fed funds rate expectations are pricing in a rate cut at September’s meeting, the odds of a cut are currently 100% according to CME FedWatch.
- Earnings: The S&P 500 is about halfway through the Q2 season, so far 79% of reported companies are beating EPS expectations. The S&P constituents are expected to grow earnings by 12.1% year over year for Q2. Tesla reported below expectations leading to a -12% sell off, notable points from the report include the 100% increase in revenue for the energy generation & storage segment. As well as headwinds to margin expansion in the near term. Google also reported on the same day, while the company beat expectations, analysts highlighted margin headwinds due to technical infrastructure depreciation.
The week ahead:
- Consumer Confidence & JOLTS (7/30)
- FOMC Meeting (7/31)
- Unemployment & Nonfarm Payrolls (8/2)
- Earnings: PYPL, AMT, MRK, GLW, MSFT, FLSR, & AMD (7/30), TT, HUM, BA, META & QCOM (7/31), AAPL & AMZN (8/1)
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