A busy week ahead as more than 150 SPX companies are set to report including 4 of the Mag 7 in addition to a bevy of economic data, including the first, or "advance" GDP estimate for 2Q25 (Wed) which is expected to show the US economy grew at a 2.5% annualized rate. The employment picture will be front and center with 3 reports including the JOLTS survey (Tues), ADP (Wed) and Non-Farm payrolls (Fri) all speaking to the strength of the US labor market.
Earnings season is in full swing with ~ 100 SPX companies reporting including bellweathers VZ, KO, TXN, GOOG, IBM, INTC, NOW and TSLA all on deck. Economic data is somewhat light with the highest impact report on Thurs. with the S&P Global Composite PMI Flash report for manufacturing and services in the month of July with both expected to remain steady relative to June's 52.9 reading.
2Q25 earnings start in earnest led by numerous financial related companies and the economic calendar is chock full of impactful releases. On the economic front, CPI (Tues) and PPI (Wed) inflation readings are not expected to mark an uptick in price pressures as tariff related measures have been delayed. Nonetheless, investors will be watching for any signs of potential inflation as companies potentially raise prices in front of expected input price increases.
US economic data is sparse as investors gear up for 2Q25 earnings season which starts in earnest next week. Datapoints this week include the size of the Fed's balance sheet (Mon.) which continues to decrease, now at $6.6T, still above pre-Covid levels of $4T, but well below peak levels of $9T in '22.
US markets indicated a touch higher this morning as Canada backtracks on its digital services tax that scuttled trade talks on Friday. Euro and Asia markets are mixed while crude is down and gold up slightly.
Financial markets are surprisingly settled after weekend news of the US bombing of three Iranian nuclear facilities with both Asian and European equity markets showing only small declines while US yields are slightly lower. Crude oil markets are currently flattish after having jumped 2%.