What happened in the markets: 01 July - 05 July, 2024
Aries Yuangga, Wakil Penasihat Berjangka
The first week of July 2024 was marked by a series of significant events in the financial markets, as traders and investors navigated through a myriad of economic data releases, corporate earnings reports, and geopolitical developments. This article delves into the key highlights of the week, analyzing the major market movers and shakers, and providing insights into what lies ahead in the coming week.
Last Week at a Glance
The week began with the release of the ISM Manufacturing PMI on Monday, July 1, which showed a slight decline from the previous month, signaling a potential slowdown in the manufacturing sector. This was followed by the JOLTS Job Openings report on Tuesday, July 2, which revealed a slight decrease in job openings, indicating a cooling labor market.
On Wednesday, July 3, the Federal Reserve released the minutes from its June meeting, highlighting concerns about inflation and signaling a potential pause in interest rate hikes. The market reacted positively to this news, with major indices closing higher. However, this optimism was tempered by the release of the non-farm payrolls report on Friday, July 5, which came in below expectations, raising concerns about the strength of the economic recovery.
Despite the mixed economic data, major indices showed resilience. The S&P 500 closed the week up by 0.8%, the Dow Jones Industrial Average gained 0.5%, and the Nasdaq Composite rose by 1.2%. The gains were primarily driven by strong performances in the technology and healthcare sectors, which offset weaknesses in the industrial and financial sectors.
Top movers & shakers🎢
Several individual stocks made headlines with significant price movements driven by a variety of factors, including quarterly earnings reports, analyst ratings, and strategic announcements. Among the notable movers were:
Tesla Inc. (TSLA): 🚗 Tesla was one of the standout performers of the week, with its stock surging by 10% following the announcement of better-than-expected delivery numbers for Q2 2024. The company reported delivering 466,140 vehicles, surpassing analysts' estimates of 445,000. This positive news reinforced investor confidence in Tesla's growth prospects, particularly in the face of increasing competition in the electric vehicle market.
Apple Inc. (AAPL): 🍎 Apple also made headlines, with its stock climbing 5% after the company announced a new product launch event scheduled for later in the month. Speculation about the unveiling of the next-generation iPhone and potential advancements in augmented reality technology fueled investor optimism. Additionally, a report from a prominent investment bank upgrading Apple's stock to a "buy" rating added to the bullish sentiment.
Boeing Co. (BA): ✈️ Boeing experienced a turbulent week, with its stock falling by 7% after the company announced delays in the delivery of its 777X aircraft. The delays were attributed to ongoing supply chain challenges and regulatory hurdles. This news disappointed investors who had been hopeful for a quicker resolution to Boeing's production issues. However, some analysts remain optimistic about the long-term prospects of the company, citing a strong backlog of orders.
Nvidia Corp. (NVDA): 💻 Nvidia saw its stock rise by 6% after announcing a strategic partnership with a leading cloud service provider to enhance its AI capabilities. The collaboration is expected to boost Nvidia's presence in the rapidly growing AI market, and investors reacted positively to the news. The company's strong quarterly earnings report, which beat expectations on both revenue and earnings per share, further bolstered investor confidence.
Rivian Automotive Inc. (RIVN): 🚙 Rivian had a challenging week, with its stock dropping by 8% following the announcement of a recall affecting over 20,000 vehicles due to a potential safety issue. This setback raised concerns about the company's ability to scale production and maintain quality control. Despite the short-term challenges, some analysts believe Rivian's strong cash position and strategic partnerships will help it navigate through these issues.
These movements illustrate the diverse factors influencing stock prices, from company-specific news to broader market trends. Investors should continue to monitor these and other key players as they navigate the evolving financial landscape.
The Week Ahead: July 08 - 12, 2024
The coming week is packed with important economic data releases that will be closely watched by investors and policymakers alike:
Consumer Price Index (CPI) - July 10, 2024: The CPI report will be closely watched for indications of inflationary pressures. Analysts expect the report to show a moderate increase in consumer prices, reflecting ongoing supply chain disruptions and rising commodity prices.
Producer Price Index (PPI) - July 11, 2024: The PPI report will provide insights into the cost pressures faced by producers. A higher-than-expected reading could signal increased costs being passed on to consumers.
University of Michigan Consumer Sentiment - July 12, 2024: This report will gauge consumer confidence and provide insights into consumer spending trends. A strong reading could indicate robust consumer spending, which is a key driver of economic growth.
Key Earnings Reports
Several major companies are set to report their quarterly earnings in the coming week, providing further insights into corporate health and sector performance:
JPMorgan Chase & Co. (JPM): 💳 Scheduled to report on July 10, 2024, analysts will be looking for updates on the bank's loan growth, net interest margin, and credit quality. Additionally, any commentary on the economic outlook and potential impact of higher interest rates will be closely scrutinized.
PepsiCo Inc. (PEP): 🥤 Set to release its earnings on July 10, 2024, PepsiCo's report will offer a glimpse into consumer spending trends and the impact of inflation on input costs. Investors will be interested in the company's pricing strategies and any updates on its efforts to expand its portfolio of healthier snack and beverage options.
Delta Air Lines Inc. (DAL): ✈️ Reporting on July 11, 2024, Delta's earnings will be a key indicator of the state of the travel and leisure industry. Analysts will be looking for updates on passenger demand, capacity, and any guidance on future travel trends. Additionally, any commentary on fuel costs and labor expenses will be closely watched.
BlackRock Inc. (BLK): 💼 Scheduled to report on July 12, 2024, as the world's largest asset manager, BlackRock's earnings report will provide insights into the state of the investment management industry. Investors will be looking for updates on the company's assets under management, fee income, and any strategic initiatives aimed at expanding its product offerings.
Citigroup Inc. (C): 🏦 Set to release its earnings on July 12, 2024, Citigroup's report will offer further insights into the health of the financial sector. Analysts will be looking for updates on the bank's trading revenue, investment banking activity, and any commentary on the regulatory environment.
Conclusion
The first week of July 2024 showcased the dynamic nature of financial markets, with mixed economic data and significant stock movements. Tesla and Nvidia impressed investors with positive developments, while Boeing and Rivian faced challenges. The coming week promises to be equally eventful, with crucial economic reports like the CPI and PPI set to provide further insights into inflation trends. Key earnings reports from JPMorgan Chase, PepsiCo, Delta Air Lines, BlackRock, and Citigroup will also be closely monitored. As investors navigate these developments, the importance of staying informed and adaptable in the ever-changing financial landscape remains paramount.
Source:
https://www.schwab.com/learn/story/schwab-market-update
https://www.edwardjones.com/us-en/market-news-insights/stock-market-news/stock-market-weekly-update
*Disclaimer:
This information is provided for general information purposes only. Consider your investment objectives, financial resources and other relevant circumstances carefully before investing. This is not an invitation or an offer to invest, nor is it financial advice or a recommendation to buy or sell any investment.
