The Week Ahead on Wall Street

Economic Data

Today the Chicago Fed will release the National Activity Index for July. The report is designed to help investors gauge overall economic activity and how that’s being affected by inflation. June’s reading held steady at -0.19, marking the second straight month of negative activity. The last back-to-back negative readings happened in early 2020 when the pandemic was unfolding.

Tomorrow, S&P Global will publish its preliminary manufacturing PMI and services PMI for August. The PMI or purchasing manager index is a survey that shows whether these sectors are expanding or contracting. July’s manufacturing PMI checked in at its lowest level in two years, while the services PMI declined for the first time in two years. Also watch for July’s new home sales.

Wednesday, the National Association of Realtors® will publish its pending home sales index for July, tracking the number of signed contracts for the sale of homes. June’s index fell 8.6% from the previous month, which analysts blamed on surging mortgage rates. July’s durable goods orders and core capital equipment orders are also slated for mid-week release.

Thursday, new and existing jobless claims are due. Initial claims fell by 2,000 last week to 250,000. Also, keep an eye out for the latest estimate of second-quarter GDP. The preliminary report showed GDP declined in Q2. Since GDP growth in Q1 was negative, the reading kicked off a debate as to whether or not the US economy is in a recession, which is commonly defined as two consecutive quarterly declines.

Friday, the July PCE will be printed. Also known as the Personal Consumption Expenditures Price Index, it tracks the price of goods over time in a manner similar to the CPI. This metric includes how much is spent on services, as well as durable and non-durable goods. The PCE is also the Fed’s preferred inflation metric. June’s reading set a new 40-year high. Personal income and personal spending for July are also due to round out the week.

Earnings

Today, Palo Alto Networks (PANW) is set to report earnings. In recent weeks, hackers have been taking advantage of a flaw in the cybersecurity firm’s system, resulting in distributed denial of service (DDoS) attacks.

Tomorrow, Macy’s (M) will publish its second-quarter results. This follows last week’s heavy focus on retail earnings, as well as a report that showed retail spending held steady in July despite inflation. As of earlier this month, Toys R’ Us locations have opened in Macy’s stores across nine states. More are slated to open by mid-October, in time for the holiday shopping season.

Wednesday, chipmaker NVIDIA (NVDA) is scheduled to hand in its latest report card. Executives will discuss the firm’s second-quarter and fiscal-year 2023 earnings. Reports indicate NVIDIA’s next-generation “Ada Lovelace” graphics cards will hit the market soon, coupled with a price drop for earlier models. Also, watch for Advance Auto Parts to report its second-quarter earnings.

Thursday, both Dollar General (DG) and Dollar Tree (DLTR) are on the earnings calendar. As inflation has spiked, consumers have begun turning to dollar stores for more items, including canned food. Investors will be watching both companies’ results to see how that trend is impacting sales and profit.

Friday, Chinese food delivery giant Meituan (MPNGY) will publish its second-quarter earnings. This comes as the company’s share price has been under pressure due to reports Tencent (TCEHY) plans to divest its $24 billion stake.

The Week Ahead at SoFi

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