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
