After the great week, post Independence Day weekend we are heading to data driven and challenging week ahead with CPI data on headline followed by big beginning of Q2 Earning season.
Market Outlook for the week of 11th July/ Driving forces of market:
✅️Chinese CPI
Chinese CPI Y/Y is having to picked up to 2.4% from 2.1% in June, whilst PPI is seen cooling to 6.0% from 6.4%. CPI M/M is expected to contract 0.1% vs a contraction of 0.2% in May. Also, China has imposed fines on technology giants Alibaba and Tencent as well as a range of other firms for failing to comply with anti-monopoly rules on the disclosure of transactions, the country’s market regulator said on Sunday.
✅️US CPI
June inflation data comes out this week, with most countries releasing data on Wednesday. The U.S. consumer price index is expected to show an 8.8% year over year increase and a 1.1% month over month increase, which would be accelerations from last month’s number. Gas prices and the cost of energy are expected to be the main drivers, as the average price of crude oil was 3.6% higher in June than May. Core CPI is expected to be 5.8% year over year, slightly down from May’s number.
Notable Earnings to Watch:
DAL PEP JPM TSMC MS C BLK WFC CTAS
✅️Retail Sales:
U.S. retail sales data comes out on Friday, giving investors a more hands-on take on how consumers are responding to the current economic crosswinds. Sales are expected to increase 0.8% month over month, though that number is not adjusted for inflation.
Political crisis in Srilanka and Russia/ Ukraine crisis are other external forces to drive the market. Gasoline could see another volatile week again. Twitter deal off. GOOGL split prior week.
To sum up, a decision making week of US Stock market with key release and earning performance can help us to understand the fear of recession too followed by CPI data.
Safe landing/ Recession/ stagflation
Information have been collected from various sources: Bloomberg, cnn, investing . com, yahoo finance.
✅️On watch:
SPX QQQ SPY UVXY JPM DAL OXY XLE TSLA AMD AMZN GOOGL TSMC NVAX
Disclaimer: Investing in financial market severe risk. This is not an investment advice, just a general idea for learning purpose.
