WEEK AHEAD: ECB Meeting, PBOC & Netflix Earnings

Prepare for trading markets over the next five days with the FlowBank Week ahead report:

European Central Bank officials are poised to reveal just how their new monetary strategy, unveiled with fanfare earlier this month, will actually make a difference to investors.
At their decision on Thursday, policy makers will tweak their stance to reflect changes ranging from a slightly higher inflation goal of 2% to an explicit allowance that they might overshoot it for a while. ECB President Christine Lagarde has already primed financial markets, saying they should prepare for new guidance on stimulus “given the persistence that we need to demonstrate to deliver on our commitment.”

Stocks enter a busy week for earnings news with two perplexing questions hanging over the market. One is whether the big gains in corporate profits will start to boost stocks with solid earnings reports. That was not the case for some financial sector stocks this past week. The other question is whether the surprise decline in the 10-year Treasury note yield is sending a message that stock investors should heed.


One of the most closely watched quarterly reports this week will come from Netflix (NFLX) on Tuesday. Investors are nervously eyeing Netflix's second-quarter earnings report after a sharply disappointing first quarter, during which the streaming giant added fewer than 4 million new paying subscribers versus the 6.3 million expected.


China will likely keep its benchmark lending rate unchanged at its July fixing on Tuesday, a small majority of respondents to a Reuters survey believe, but there are growing expectations for a cut after a surprise lowering of bank reserve requirements.

CALENDAR

MONDAY

Earnings

IBM, J.B. Hunt, AutoNation, Cal-Maine Foods, Steel Dynamics, Tractor Supply, F.N.B. Corporation

Macro

US: NAHB Housing

Asia: RBA Minutes

Monetary Policy

N/A

 

TUESDAY

Earnings

Travelers, Netflix, United Airlines, UBS, Chipotle, Synchrony Financial, Citizens Financial, Halliburton,

Canadian National Railway, Interactive Brokers, Intuitive Surgical, ManpowerGroup, KeyCorp

Macro

US: Building Permits

Monetary Policy

China LPR rate decision

 

WEDNESDAY

Earnings

Johnson and Johnson, Coca-Cola, Verizon, CSX, Whirlpool, Texas Instruments, Novartis, Nasdaq,

Harley-Davidson, Anthem, Baker Hughes, Northern Trust, Tenet Healthcare, Discover Financial, SLM, Netgear

Macro

US: Crude oil inventories

Monetary Policy

N/A

 

THURSDAY

Earnings

Intel, AT&T, Blackstone, Twitter, Snap, Biogen, Dow, Union Pacific, Abbott Labs, American Airlines,

DR Horton, Southwest Air, Capital One, Boston Beer, Celanese, VeriSign

Macro

US: Existing Home Sales

Monetary Policy

ECB interest rate decision & press conference

 

FRIDAY

Earnings

Honeywell, American Express, Norsk Hydro, Kimberly-Clark, Schlumberger, Regions Financial

Macro

Europe: UK retail sales, Germany manufacturing PMI, UK Servies & Manufacturing PMI,

US: Canada retail sales

Monetary Policy

Russia interest rate decision

 

Sources: Investing.com, CNBC, Bloomberg

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