US Federal Reserve Board Chairman Jerome Powell answers questions after the Federal Reserve raised its target interest rate by three-quarters of a percentage point to stem a disruptive surge in inflation, during a press conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, June 15, 2022.
Elizabeth Frantz | Reuters
Here are the most important information investors need to start their trading day:
1. Big week ahead
It will be the biggest week so far of the current earnings season, with about a third of S&P 500 companies due to report. Investors are also watching what the Fed will say at its meeting on Tuesday and Wednesday. Markets expect another 75 basis point rate hike from central bank policymakers as inflation remains high, although some observers believe it may well have peaked. Here are some of the top companies expected to release their quarterly results this week:
- Tuesday: McDonald’s, Coca-Cola, General Motors (before the bell); Alphabet, Microsoft (after the bell)
- Wednesday: Boeing (before the bell); Ford, Meta, Qualcomm (after the bell)
- Thursday: Comcast (before the bell); Apple, Amazon (after the bell)
- Friday: ExxonMobil, Chevron, Procter and Gamble (before the bell)
2. Stock futures are rising
Traders on the floor of the NYSE, July 21, 2022.
US equity markets signaled a positive open on Monday. Last week, the S&P 500, Nasdaq and Dow all ended in the green despite a tough Friday largely due to dismal earnings reports from Snap. Investors are looking for a bottom after the disastrous first half for equities, and the earnings season, while not spectacular, has been quite good for investors. So far, about 70% of S&P 500 companies that have reported earnings have exceeded analysts’ expectations, according to FactSet.
3. GM at a crossroads
GM President and CEO Mary Barra speaks to investors October 6, 2021 at the GM Tech Center in Warren, Michigan.
Photo by Steve Fecht for General Motors
General Motors is expected to report results on Tuesday, and investors will be looking for indications that the Detroit automaker is making progress in its pursuit of all-electric. So far, GM, like its legacy rivals, is far behind Elon Musk’s Tesla. Yet while Tesla’s market share is expected to continue to decline in the United States as rivals ramp up production of electric vehicles, GM has also fallen behind other rivals. Crosstown rival Ford has increased its share this year, as has South Korea’s Hyundai, while GM has declined. However, CEO Mary Barra is undeterred. “Nobody has as many vehicles as we will have by 2025,” she told CNBC’s Michael Wayland earlier this year.
4. War and Wheat
A photo taken on July 15, 2022 shows a wheat field near Mariupol in the Donetsk region, amid ongoing Russian military action in Ukraine.
Stringer | AFP | Getty Images
The world is wary of the state of the wheat market after a Russian attack on the Ukrainian port city of Odessa cast doubt on the export deal struck by the two warring nations last week. The Kremlin said the attack targeted the Ukrainian military, but the timing of the strikes so soon after the pact raised alarms. Early Monday morning wheat futures rose as investors processed the news, but have been down overall since May. Follow live updates on the Russian-Ukrainian war here.
5. Vince McMahon is stepping down…sort of
In an epic newsletter Friday, Vince McMahon, the longtime head of World Wrestling Entertainment, announced that he would be retiring as CEO and President of the company he bought from his father years ago. about 40 years old. He had already stepped down as general manager a few weeks ago, handing over the duties to his daughter Stephanie McMahon on an interim basis, as WWE’s board investigated millions of dollars in silent payments he allegedly paid several women for allegations of sexual misconduct over the years. On Friday, he handed over the reins to Stephanie McMahon, who also became chairman, and WWE Chairman Nick Khan, who will act as co-CEO. But even at 76, McMahon is still WWE’s largest shareholder – a point he underscored when announcing his retirement. Sports media pundits see WWE as an acquisition target. Since McMahon is a central part of the wrestling company’s brand and content, it could signal to potential suitors that his specific showmanship flavor will be part of any package.
– CNBC’s Patti Domm, Peter Schacknow, Michael Wayland, Matt Clinch and Dan Mangan contributed to this report.
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