Week Ahead: A Busy Week Ahead as Investors Wait for CPI and Earnings Data
October 15, 2018 2:41 pm
Friday last week marked the beginning of the third quarter earnings season. As always, the first companies to release their earnings were Citigroup, JP Morgan, and Wells Fargo. As it has been throughout the year, the companies’ results were better than traders had expected. This was attributed to the continued strength of the US economy and the positive impacts of the tax cuts by the Trump administration. This week, the season will continue with key companies expected to release their earnings. Today, Bank of America and Total will announce followed by BHP Billiton, Blackrock, Morgan Stanley, Goldman Sachs, IBM, Johnson & Johnson (J&J), and Netflix on Tuesday. On Wednesday, Abbot Labs, Danone, Roche, and eBay will report followed by Nestle, Paypal, SAP, Unilever and Taiwan Semiconductor on Thursday. On Friday, Honeywell, P&G, and Schlumberger will report.
Traders will also pay close attention to the US and Saudi Arabia relations. The problems started with the disappearance of a Saudi Arabia journalist who has in the past written passionately against the crown prince. It is believed that he was killed under the orders of the crown prince. Last week, a group of bipartisan senators sent a letter to Donald Trump asking him to punish Saudi Arabia. In an interview with 60 Minutes, the president said that he was likely to impose sanctions on Saudi. This led to a 5% decline in the Saudi stocks listed at Tawadul. In response, Saudi officials said that they would retaliate strongly if they are targeted by the US. This will present a major challenge to the US leadership who consider Saudi Arabia a close ally. This led to a sharp increase in the price of crude oil.
Brexit will be another important topic this week. Last week, a report emerged that said that the UK and the EU were nearing a deal. This deal was supposed to be announced as early as on Monday. This led to a sharp increase in the sterling against the major currencies such as the US dollar and the euro. This week, traders may pay a close attention to the developments and whether there will be a breakthrough. If there is, it may be a positive thing for the UK stocks and the pound.
It will be an interesting week on economic data. There are no major economic data expected today. Tomorrow, traders will receive the CPI numbers for New Zealand followed by the RBA minutes for the previous meeting. The UK will also release the wages numbers while the EU will release the trade balance numbers. In the US, the JOLTS job openings data too will be released. On Wednesday, we will receive the CPI numbers from the UK and the EU. The building permits and the FOMC minutes will be released. On Thursday, we will receive the employment numbers for Australia, retail sales numbers from the US, and the Philadelphia Fed manufacturing numbers. On Friday, we will receive the Chinese GDP numbers and the CPI numbers from Canada.
Friday last week marked the beginning of the third quarter earnings season. As always, the first companies to release their earnings were Citigroup, JP Morgan, and Wells Fargo. As it has been throughout the year, the companies’ results were better than traders had expected. This was attributed to the continued strength of the US economy and the positive impacts of the tax cuts by the Trump administration. This week, the season will continue with key companies expected to release their earnings. Today, Bank of America and Total will announce followed by BHP Billiton, Blackrock, Morgan Stanley, Goldman Sachs, IBM, Johnson & Johnson (J&J), and Netflix on Tuesday. On Wednesday, Abbot Labs, Danone, Roche, and eBay will report followed by Nestle, Paypal, SAP, Unilever and Taiwan Semiconductor on Thursday. On Friday, Honeywell, P&G, and Schlumberger will report.
Traders will also pay close attention to the US and Saudi Arabia relations. The problems started with the disappearance of a Saudi Arabia journalist who has in the past written passionately against the crown prince. It is believed that he was killed under the orders of the crown prince. Last week, a group of bipartisan senators sent a letter to Donald Trump asking him to punish Saudi Arabia. In an interview with 60 Minutes, the president said that he was likely to impose sanctions on Saudi. This led to a 5% decline in the Saudi stocks listed at Tawadul. In response, Saudi officials said that they would retaliate strongly if they are targeted by the US. This will present a major challenge to the US leadership who consider Saudi Arabia a close ally. This led to a sharp increase in the price of crude oil.
Brexit will be another important topic this week. Last week, a report emerged that said that the UK and the EU were nearing a deal. This deal was supposed to be announced as early as on Monday. This led to a sharp increase in the sterling against the major currencies such as the US dollar and the euro. This week, traders may pay a close attention to the developments and whether there will be a breakthrough. If there is, it may be a positive thing for the UK stocks and the pound.
It will be an interesting week on economic data. There are no major economic data expected today. Tomorrow, traders will receive the CPI numbers for New Zealand followed by the RBA minutes for the previous meeting. The UK will also release the wages numbers while the EU will release the trade balance numbers. In the US, the JOLTS job openings data too will be released. On Wednesday, we will receive the CPI numbers from the UK and the EU. The building permits and the FOMC minutes will be released. On Thursday, we will receive the employment numbers for Australia, retail sales numbers from the US, and the Philadelphia Fed manufacturing numbers. On Friday, we will receive the Chinese GDP numbers and the CPI numbers from Canada.
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