The Week Ahead on Wall Street

Economic News

Today, pending home sales for July are released. In June pending home sales declined 1.9% amid inventory shortages and rising home prices. Investors will be paying close attention to the reading for July to gauge the health and trajectory of the real estate market.

Tomorrow, the Consumer Confidence Index for July is published. This data point tracks how consumers are feeling about the economy and their finances. Consumer confidence remained high in July but with the Delta variant spreading, it is not clear if that remains the case.

On Wednesday, motor vehicle sales for August are due. The sales pace for vehicles slowed in July as dealers dealt with inventory shortages. The situation may have gotten worse in August with chip shortages forcing car markers to curb production and rising cases of COVID-19 slowing down the supply chain. Construction spending for July and the ISM Manufacturing Index for August are also released Wednesday.

Be on the lookout for initial and existing unemployment claims on Thursday. The unemployment rate has steadily declined even as the number of COVID-19 cases increases. Last week, initial jobless claims jumped slightly to 353,000. Investors will be paying close attention to see if this trend continues.

Finally, on Friday nonfarm payrolls for August are released along with related metrics including the unemployment rate and average hourly earnings. Nonfarm payrolls jumped by 943,00 in July despite increasing infections across the country. It marked the largest payroll jump since August of last year.

Earnings Reports

Today, be on the lookout for Zoom Video Communications (ZM) which reports quarterly earnings. The video-conferencing software provider became a lifeline during the pandemic. To remain relevant as companies return to their offices, it’s branching into new areas. Last month it acquired Five9, a cloud-based call center software company, for $14.7 billion. Investors will want to hear more about the deal and how usage is holding up as cases of COVID-19 rise again.

Tomorrow, NetEase (NTES) reports quarterly results. Earlier this month the Chinese internet technology company delayed its Hong Kong IPO of Cloud Village, its music streaming service, which was valued at $1 billion. The delay was due to the current regulatory environment in China. With the Chinese government clamping down on tech companies, investors are feeling slightly more hesitant at the moment. NetEase is expected to shed light on the impact the current regulatory environment is having on its business.

On Wednesday, Campbell Soup (CPB) hands in its report card. Late last month the soup maker overhauled its labels for the first time in 50 years. To commemorate the new design Campbell launched a non-fungible token and donated proceeds to Feeding America. Investors will want to know how the new branding is resonating with consumers and what impact COVID-19 is having on sales.

On Thursday, be on the lookout for earnings from Broadcom (AVGO), a mobile chip maker. With semiconductor shortages still persisting and COVID-19 cases rising, it’s causing more supply-chain headaches across the globe. The chip shortages have gotten so bad some car markers have had to reduce their production of new vehicles. Investors will be paying close attention to what Broadcom has to say about the demand-supply imbalance when it reports quarterly earnings.

Also Thursday, American Eagle (AEO) reports quarterly results. Leading up to the back-to-school selling season, the retailer rolled out a new campaign aimed at getting customers in stores. But with the Delta variant rapidly spreading across the country, signs are emerging consumers are beginning to spend less. With American Eagle a popular destination for teens and college-bound consumers, it will be interesting to hear what it has to say about back-to-school demand.

The Week Ahead at SoFi

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