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Wall Street and Global Markets to Watch for Quarterly Reports and Economic Data

Strategic Insights

— 1 min read

The earnings season kicks off on Wall Street this week with Alcoa's quarterly report, followed closely by other major companies, as investors seek guidance on future performance amidst growing uncertainty about the US economy and the potential for another recession. Analysts expect significant increases in earnings for S&P 500 companies, but forecasts for the future will be a key factor in shaping market sentiment. Meanwhile, macroeconomic data releases from the US and China will provide crucial insights into the state of the global economy.

Key Takeaways:

  • Alcoa's quarterly report is expected to show a 12 cent EPS, up from a loss of 26 cent per share last year, with forecasts for the second quarter.
  • Analysts expect a 27% increase in earnings for S&P 500 companies in the second quarter, following a 50% increase in the first quarter.
  • The US macroeconomic data releases this week, including the international trade report, retail sales data, and the FOMC meeting, will be closely watched by investors for signs of economic recovery.
  • China's June data releases, including the balance of trade data, show a significant trade surplus and increasing exports, suggesting a robust world economy despite fears over the fiscal crisis in Europe.
  • The Chinese exports to the European Union reached 27.2 billion USD, a 43.2% year-over-year increase, while imports were at 14.7 billion USD, the best result in 12 months.

Statistics:

  • Alcoa's expected EPS for the second quarter: 12 cents.
  • Analysts' forecast for S&P 500 earnings: 27% increase in the second quarter.
  • US macroeconomic data releases this week:

+ International trade report: -39 billion dollar forecast.

+ Retail sales data: -0.2% m/m expected.

+ The FOMC meeting scheduled for Wednesday.

+ Production data: -0.1% m/m forecast.

+ PPI inflation: 3.1% y/y expected.

+ CPI inflation: 1.2% y/y expected.

+ University of Michigan Sentiment Index: prognosis: 75.

  • China's June data releases:

+ Trade surplus: 20 billion USD, exceeding market consensus of 13.8 billion USD.

+ Exports: 137.3 billion USD in June, a 43.9% year-over-year increase.

+ Imports: 14.7 billion USD, the best result in 12 months.

Sources:

  • "Alcoa beats analyst forecast, but revenue remains weak" by Paul Ziobro, WSJ (no date provided).
  • "US macroeconomic data releases this week" by Thomson Reuters (no date provided).
  • "China's June trade surplus exceeds market expectations" by X-Trade Brokers Dom Maklerski S.A. (no date provided).

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