The Market Week Ahead: July 8 – July 12

 

July 8, 2019 – Stocks started this week lower. The drop wasn’t entirely surprising given that major indices hit new all-time highs last week. The market is also still trying to figure out that jobs report from Friday that seems to have changed how the market feels about a July rate cut.

We talked about jobs report, central bank and interest rates in our Friday post. Not much has changed since then, but this week brings minutes from the Fed’s last meeting and Chairman Jerome Powell will be speaking to Congress and will probably be asked about the health of the economy and interest rates. Powell will be trying not to tip his hand without trying to spook the market, which is a difficult tightrope to walk. 

Headlines about trade, Iran or North Korea could easily spook markets this week. At this point, it seems like the risk is weighted toward a negative surprise, given that talks on all three fronts seem to be in very early stages, at least in terms of how far there is go toward a deal.

Economic Events this Week

Fed Chair Jerome Powell will spend two days answering questions on Capitol Hill this week.

  • Wednesday
    • 10:00 a.m. – Fed Chair Powell Testimony
    • 10:30 a.m. – EIA Crude Oil Inventories
    • 2:00 p.m. – FOMC Minutes
  • Thursday
    • 8:30 a.m. – CPI
    • 10:00 a.m. – Fed Chair Powell Testimony
  • Friday
    • 8:30 a.m. – PPI

Earnings Reports this Week

Earnings season kicks off at the end of next week, so the calendar is pretty light this week.  

Tuesday:

  • Before the bell: PEP
  • After the bell: LEVI, HELE, WDFC

Wednesday:

  • Before the bell: MSM
  • After the bell: None

Thursday:

  • Before the bell: DAL, FAST
  • After the bell: None

Friday:

  • Before the bell: INFY

Sector Analysis 

Strong Sectors past Month

These sectors are up 5% or more in the last 20 trading days:

  • Gold Miners
  • Junior Gold Miners
  • Solar
  • Oil Services
  • Robotics and Artificial Intelligence
  • Semiconductor
  • Consumer Discretionary
  • Nasdaq 100
  • Metals and Mining 
  • Technology
  • Steel
  • Agribusiness
  • Cyber Security
  • Aviation
  • Medical Devices
  • Biotechnology
  • Retail
  • Internet

Weak sectors past month

No sectors are down 5% or more in the last 20 trading days:

    Strong sectors past five trading days

    These sectors are up more than 3% in the last five days.

    • Aviation
    • Solar
    • Insurance
    • Real Estate

    Weak sectors past five trading days

    No sectors are down 3% or more in the last five trading days.

    Bobby Raines

    Bobby Raines

    Bobby Raines is the Managing Editor of the Market Intelligence Center. He has degrees in Mass Communications and History from Emory & Henry College. Bobby worked at a mid-sized daily newspaper before making a switch to covering the financial industry full time in the years leading up to the financial crisis. He has been a member of the Fresh Brewed Media team since 2011 and has served as a writer and analyst. You can write to him at braines@marketintelligencecenter.com or follow him on Twitter: @BRatMICenter.

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