Tech Giants' Earnings and FOMC Meeting to Drive Market Sentiment

Eyes On the FOMC, Tech Heavyweights Report, and OPEC+ Meeting

Get ahead of the market by subscribing to Seeking Alpha's Stocks to Watch, a preview of key events scheduled for the coming week. The newsletter keeps you informed of the biggest stories set to make headlines, including upcoming IPOs, investor days, earnings reports and conference presentations. The week ahead will keep investors on their toes. Monetary policy decisions are due in from the Federal Reserve, the Bank of Japan, and the Bank of England, while at the end of the week, the U.S. jobs report for July will attract attention. Nonfarm payrolls additions are forecast to have risen by a solid 215K in July after coming in at 206K in June. The unemployment rate is expected to remain at. The week will also see OPEC+ ministers meet. The expectation is that the plan for an oil production increase in October will be kept in place. In corporate earnings, the tech sector will be in the spotlight with Microsoft (MSFT) (preview), Meta Platforms (META) (analysis), Apple (AAPL) (preview), Amazon (AMZN) (analysis), IBM (IBM) (preview), and Intel (INTC) (analysis) just some of the big name due to step out following the recent weakness in the Nasdaq 100. Other sectors are well represented, with McDonald's (MCD) (preview), Merck (MRK) (preview), and Exxon Mobil (XOM) (analysis) all due to spill numbers. Earnings spotlight: Monday, July 29 - McDonald's (MCD), ON Semiconductor (ON), and Welltower (WELL). See the full earnings calendar. Earnings spotlight: Tuesday, July 30 - Microsoft (MSFT), Procter & Gamble (PG), Merck (MRK), Advanced Micro Devices (AMD), Pfizer (PFE), Starbucks (SBUX), and S&P Global (SPGI). See the full earnings calendar. Earnings spotlight: Wednesday, July 31 - Meta Platforms (META), Mastercard (MA), Qualcomm (QCOM), Western Digital Corporation (WDC), Arm Holdings (ARM), Boeing (BA), eBay (EBAY), Altria (MO), Marriott International (MAR). See the full earnings calendar. Earnings spotlight: Thursday, August 1 - Amazon (AMZN), Apple (AAPL), Intel (INTC), Block (SQ), DoorDash (DASH), Cigna (CI), ConocoPhillips (COP), Anheuser-Busch InBev (BUD), Roblox (RBLX), and DraftKings (DKNG). See the full earnings calendar. Earnings spotlight: Friday, August 2 - Church & Dwight (CHD), Chevron (CVX), and Exxon Mobil (XOM). See the full earnings calendar. Volatility watch: Options trading volume is elevated on Cipher Mining (NASDAQ:CIFR) and SoundHound AI (NASDAQ:SOUN). The most overbought stocks per their 14-day relative strength index include Zapp Electric Vehicles Group (ZAPP), Tesla (TSLA), and Power Solutions (OTCPK:PSIX). The most oversold stocks per their 14-day Relative Strength Index include Helen of Troy (HELE), HilleVax (HLVX), and Indivior (INDV). Short interest has moved higher on Blue Star Foods (BSFC), Volcon (VLCN), and Guess? (GES). IPO watch: Pershing Square USA Ltd. (PSUS) is expected to price its IPO on July 29 and begin to trade on July 30. The IPO lockup periods expire for blocks of shares of Amer Sports (NYSE:AS), Alto Neuroscience (NYSE:ANRO), Fractyl Health (GUTS), and Pixie Dust Technologies (PXDT). Dividend watch: Companies that have an ex-dividend date coming next week include Weis Markets (WMK), Delta Air Lines (DAL), Morgan Stanley (MS), and J.B. Hunt (JBHT). Companies forecast to increase their quarterly dividend payouts include Sturm Ruger (RGR) to $0.30 from $0.16, SunCoke Energy (SXC) to $0.12 from $0.10, McKesson (MCK) to $0.69 from $0.62, and Wingstop (WING) to $0.24 from $0.22. Read about some of the dividend stock picks from Seeking Alpha analysts. Federal Reserve watch: The Federal Reserve's policymaking committee will meet next week as investors increasingly anticipate a September rate cut from the central bank. The target range for the fed funds rate is set to remain at 5.25% to 5.50% after the July policy meeting, which would mark the 8th consecutive meeting at which rates have been held steady. However, the policy statement could see some meaningful changes. Jerome Powell's press conference will also be closely watched to gauge the level of confidence the FOMC has that inflation is on a sustainable path to the 2% target. Ahead of the Fed meeting, Nomura noted that realized inflation has continued to cool, with forward-looking evidence that disinflation can continue. "Core PCE rose just 0.083% m-o-m in May, and we expect only a modest rebound in June. Rent inflation decelerated sharply in the June CPI report, an encouraging sign after disinflationary progress appeared to stall in Q1," previewed the firm. Investor events: Nvidia (NVDA) CEO Jensen Huang and Meta Platforms (META) CEO Mark Zuckerberg will give keynote addresses at the SIGGRAPH Conference in Denver. Huang and Mark Zuckerberg will discuss how fundamental research is enabling AI breakthroughs, and how generative AI and open source will empower developers and creators. They will also discuss the role of generative AI in building virtual worlds and virtual worlds for building the next wave of AI and robots. Meanwhile, shares of Alector (ALEC) could be active, with the company due to present data on pipeline focus areas at the Alzheimer's Association International Conference. Spinoff watch: Seaport Entertainment Group will begin trading next week after being spun off from Howard Hughes (NYSE:HHH). The purpose of the separation is to allow Howard Hughes to focus on building master-planned communities, while Seaport Entertainment will focus on hospitality projects such as the Las Vegas Aviators baseball team, its 25% stake in Jean-Georges Restaurants, and the 80% ownership interest in the air rights above Fashion Show mall on the Las Vegas Strip. U.S. auto sales preview: J.D. Power forecasts that total new-vehicle sales for July, including retail and non-retail transactions, will be up 2.85 from a year ago to reach 1,340,500 vehicles. The seasonally adjusted annualized rate for total new-vehicle sales is expected to be 16.7 million units, up 0.7 million units from July 2023 and the highest in more than three years. "While the top line sales results are impressive, they are being inflated by sales that would have otherwise occurred in June. The delay occurred because of the software outages in June that limited many dealers' ability to process transactions, thus affecting the June sales pace," highlighted Thomas King. "The July sales pace would be stronger still were it not for a combination of factors that are affecting consumer demand. While discounts from dealers and OEMs grew in July from June, the increases were slightly smaller than is typical, since July is historically when manufacturers start to elevate discounts on prior model-year vehicles," he added. S&P Global Mobility highlighted that July battery electric vehicle market share is expected to reach 7.8% during July to show advancement from the Q1 results. BEV share is expected to progress over the next several months, assisted by the roll-outs of vehicles such as the Chevrolet Equinox EV and Honda Prologue, followed by new BEVs like the Jeep Wagoneer S and Volkswagen ID. Buzz slated for release in the second half of 2024, noted S&P. Our news team's weekend preview of upcoming IPOs, earnings reports, conference presentations, investor days, IPO lockup expirations, FDA decisions, Barron's mentions, and other key events that could impact stocks.

Catalyst Watch: Tech blitz with Apple, Amazon, Microsoft, and Meta on tap for earnings

Welcome to Seeking Alpha's Catalyst Watch - a breakdown of some of next week's actionable events that stand out. Check out Seeking Alpha's earnings calendar for a full list of companies due to report. Monday - July 29 Volatility watch - Options trading volume is elevated on Container Store (TCS) and Allbirds (BIRD) ahead of their earnings reports. The most overbought stocks per their 14-day relative strength index include Serve Robotics (SERV), Frequency Electronics (FEIM), and Regencell (RGC). The most oversold stocks per their 14-day Relative Strength Index include Above Food Ingredients (ABVE), HilleVax (HLVX), and CrowdStrike (CRWD). Short interest has moved higher on Nuwellis (NUWE) and Zapp Electric Vehicles (ZAPP). Earnings watch - Notable companies due to report include McDonald's (MCD), ON Semiconductor (ON), and Welltower (WELL). All day - Nvidia (NVDA) CEO Jensen Huang and Meta Platforms (META) CEO Mark Zuckerberg will give keynote addresses at the SIGGRAPH Conference in Denver. Huang and Mark Zuckerberg will discuss how fundamental research is enabling AI breakthroughs, and how generative AI and open source will empower developers and creators. They will also discuss the role of generative AI in building virtual worlds and virtual worlds for building the next wave of AI and robots. All day - Alector (ALEC) will present data on pipeline focus areas at the Alzheimer's Association International Conference. All day - Meta Data Limited (AIU) will begin trading on a split-adjusted basis following the company's 1-for-10 reverse stock split. 8:30 a.m. McDonald's (MCD) will hold its earning conference call. The company's update on plans for its $5 Meal Deal promotion could have implications across the restaurant sector. Tuesday - July 30 Earnings watch - Notable companies due to report include Microsoft (MSFT), Procter & Gamble (PG), Merck (MRK), Advanced Micro Devices (AMD), Pfizer (PFE), Starbucks (SBUX), and S&P Global (SPGI). Options trading implies a double-digit share price swing for Hawaiian Holdings (HA) and Lemonade (LMND) after their reports are released. All day - Vista Outdoor (VSTO) will hold a special shareholder meeting to vote on the CSG transaction. All day - Concord Medical Services (CCM) will begin trading on a split-adjusted basis following the company's 1-for-30 stock split. 12:00 p.m. The IPO lockup period for blocks of shares of Amer Sports (AS) expires. The stock trades below its IPO pricing level of $13 per share. 4:30 p.m. Hawaiian Holdings (HA) will hold its earnings call. Traders will be watching for an update on the planned merger with Alaska Air (ALK). The Department of Justice has to weigh in on the airline merger before August 5. Wednesday - July 31 Earnings watch - Notable companies due to report Meta Platforms (META), Mastercard (MA), Qualcomm (QCOM), Western Digital Corporation (WDC), Arm Holdings (ARM), Boeing (BA), eBay (EBAY), Altria (MO), Marriott International (MAR). Options trading implies a double-digit share price swing for Sleep Number (SNBR) and Etsy (ETSY) after their reports are released. 10:30 a.m. Boeing (BA) will hold its earnings conference call. Shares of Boeing have been active during the last few conference calls as Boeing management fielded questions. 1:00 p.m. Adobe (ADBE) will hold a virtual fireside chat with RBC Capital Markets. 2:00 p.m. The Federal Reserve will make a statement on its interest rate policy. 2:30 p.m. Federal Reserve Chairman Jerome Powell will hold a press conference. 4:00 p.m. Dell Technologies (DELL) will hold a conference call to discuss its corporate sustainability strategy. Thursday - August 1 Earnings watch - Notable companies due to report include Amazon (AMZN), Apple (AAPL), Intel (INTC), Block (SQ), DoorDash (DASH), Cigna (CI), ConocoPhillips (COP), Anheuser-Busch InBev (BUD), Roblox (RBLX), and DraftKings (DKNG). Options trading implies a double-digit share price swing for Wayfair (W) and Twilio (TWLO) after their earnings reports are released. Data watch - Chinese electric vehicle makers NIO (NIO), Li Auto (LI), and XPeng (XPEV) will update on monthly deliveries. Energy watch - OPEC+ ministers will hold an online meeting. Most analysts anticipate very little drama, although there is an outside chance that the committee could announce a delay to the planned supply hike of October 1. All day - Notable investor events include annual meetings for Electronic Arts (EA) and Ralph Lauren (RL). All day - Flight attendants at United Airlines (UAL) will begin to vote on a strike authorization proposal. The vote will be the first time since the 2005 bankruptcy negotiations that flight attendants at the airline will vote on a potential walkout. All day - Seaport Entertainment Group will begin trading after being spun off from Howard Hughes (HHH). The purpose of the separation is to allow Howard Hughes to focus on building master-planned communities, while Seaport Entertainment will focus on hospitality projects such as the Las Vegas Aviators baseball team, its 25% stake in Jean-Georges Restaurants, and the 80% ownership interest in the air rights above Fashion Show mall on the Las Vegas Strip. 8:00 a.m. The Bank of England will announce its interest rate decision. 8:30 a.m. The June Durable Goods Order report will be released. Friday - August 2 Earnings watch - Notable companies due to report include Church & Dwight (CHD), Chevron (CVX), and Exxon Mobil (XOM). 8:30 a.m. The June U.S. jobs report will be released. Economists forecast 185K jobs will be added to the U.S. economy during the month and for the unemployment rate to hold steady at 4.1%. Seeking Alpha Editor Josh Fineman contributed to this story. More on the markets Is It Time To Turn Intermediate Term Bearish On Stocks? SPY: Don't Be The 'Greater Fool' SPY: Good, But Not The Best Wells Fargo says S&P 500 must drop another 2% before discussing a bounce Sector rankings to consider with a market rotation underway

Apple and Microsoft are among the Magnificent Seven stocks set to report next week. Here's what that means

Next week could give investors clarity on whether the Magnificent Seven stocks can still power the market higher, or if they should instead be wary of the pitfalls of a top-heavy market now that some mega-caps have faltered. Wall Street could be in for a volatile bout of trading if this past week was any indication. On Friday, the tech-heavy S & P 500 and Nasdaq Composite were on track to cap out the week with losses, down roughly 0.7% and 2%, respectively. On the other hand, the Dow Jones Industrial Average was headed for a winning week, up by 0.7%. The small-cap Russell 2000 was the outperformer, gaining 2.5%. The small-cap index is now higher by more than 10% this year. .SPX 5D mountain S & P 500 Those moves came in the midst of lackluster earnings from Google-parent Alphabet and Tesla that drove investors to dump tech stocks in favor of more cyclical assets. Alphabet shares dropped about 6% this week. Tesla shares are down by more than 7%. However, the bulk of Magnificent Seven results are set for release in the week ahead. Microsoft reports Tuesday, while Facebook-parent Meta Platforms releases its latest quarterly results on Wednesday. Apple and Amazon are expected to post earnings Thursday. (Nvidia reports in late August). The reports could clarify what's in store for the stock market benchmarks that are heavily weighted toward technology, at a time when investors fear that the artificial intelligence trade has gotten ahead of itself. For investors, more disappointing results from the megacap stocks could mean further downside for the broader market. "The number one question being asked by clients is: is this a correction or the start of something bigger," Strategas Securities' Ryan Grabinski wrote in a Thursday note referring to this week's pullback. "While my first instinct is to say that it is a normal correction, I am beginning to see some signs of concern. First off, earnings estimates for 2H'24 are seeing revisions lower with 3Q coming down 1.4% since July 1st and 4Q coming down 0.2%." "The bigger concern however is the waning 'AI Enthusiasm,'" Grabinksi added. "The circular capex cycle for the largest, most liquid companies does not appear to be ending just yet, but investors are now questioning what the [return on investment] will be in the future." As it is, all seven of the 'Magnificent Seven' companies are closing out this week with losses. The fading of momentum Even as the tech selloff has investors concerned about waning momentum, other investors say the mega-cap tech stocks continue to look attractive. John Belton, portfolio manager at Gabelli Fund, said it's important to view the Magnificent Seven on a case by case basis. In fact, he noted that Tesla and Alphabet's earnings results this week should be differentiated, as the former was a case of poor fundamentals, while the latter was caught up in a market rotation away from tech, he said. "I do think bad fundamentals in this market environment are going to get really punished. Good fundamentals -- I think the bar is just higher right now for a lot of these tech companies in this earning season," Belton said. "And that's a dynamic that is not necessarily going to last for a long time, but that's sort of the environment we're in right now." For the moment, Belton said he's finding opportunities in other parts of the market such as health care, industrials and financials. But he still remains optimistic on the long-term outlook for AI. "A lot of these companies, the fundamentals are just still really good," Belton said. "And I think so long as the fundamentals remain good, and [the] earnings growth outlook is still positive, and earnings estimate revisions remain in a positive direction, I don't think the stocks are unreasonably priced." FOMC meeting, July jobs report Elsewhere, investors will also be reviewing the latest Federal Reserve interest rate decision set for release on Wednesday. Wall Street is anticipating the central bank will keep its benchmark lending rate at 5.25% to 5.50%, but investors will look for more clarity around the interest rate outlook for the balance of the year. Markets were last pricing in a certain rate cut in September, according to the CME FedWatch Tool . Traders will also get insight into the labor market next week, with the release of the July jobs report on Friday. Investors have been carefully watching the labor market for signs of enough cooling to justify lower rates, but not so much weakening that the economy seems headed for a recession. Economists polled by FactSet anticipate the U.S. economy to have added 177,500 jobs last month, down from 206,000 the previous month. The unemployment rate is expected to have held steady at 4.1%. Week ahead calendar All times ET. Monday July 29 10:30 a.m. Dallas Fed Index (July) Earnings: On Semiconductor , McDonald's Tuesday July 30 9 a.m. FHFA Home Price Index (May) 9 a.m. S & P/Case-Shiller Home Price Indices (May) 10 a.m. Consumer Confidence (July) 10 a.m. JOLTS Job Openings (June) Earnings: Advanced Micro Devices , Live Nation Entertainment , Public Storage , Electronic Arts , Starbucks , Match Group , Microsoft , First Solar , Extra Space Storage , Caesars Entertainment , Corning , Howmet Aerospace , Procter & Gamble , Pfizer , Merck & Co. , Stanley Black & Decker , PayPal Wednesday July 31 8:15 a.m. ADP Employment Survey (July) 8:30 a.m. Employment Cost Index (ECI) Civilian Workers (Q2) 9:45 a.m. Chicago PMI (July) 10 a.m. Pending Home Sales Index (June) 2 p.m. FOMC Meeting 2 p.m. Fed Funds Target Upper Bound Earnings: MGM Resorts International , Allstate , Albemarle , Lam Research , eBay , Qualcomm , Western Digital , Meta Platforms , Etsy , Norwegian Cruise Line Holdings , Hess , Boeing , T-Mobile , Marriott International , GE Healthcare Technologies , Generac Holdings , Kraft Heinz , Mastercard , Ingersoll Rand Thursday August 1 8:30 a.m. Continuing Jobless Claims (07/20) 8:30 a.m. Initial Claims (07/27) 8:30 a.m. Unit Labor Costs preliminary (Q2) 8:30 a.m. Productivity SAAR preliminary (Q2) 9:45 a.m. Markit PMI Manufacturing (July) 10 a.m. Construction Spending (June) 10 a.m. ISM Manufacturing (July) Earnings: Apple , Clorox , Intel , Amazon.com , Booking Holdings , Motorola Solutions , Microchip Technology , Kellanova , Hershey , Moderna , Air Products and Chemicals Friday August 2 8:30 a.m. Jobs Report (July) 10 a.m. Durable Orders (June) 10 a.m. Factory Orders (June) Earnings: Exxon Mobil , Chevron