The Fed Meets, Big Tech Reports

Estimated reading time: 8 minutes

A Federal Reserve meeting and a bunch of Big Tech earnings will give investors a lot to parse this week. 

At a Glance

• The news: The Federal Reserve meets on monetary policy, followed by a wave of earnings from tech giants including Meta, Microsoft, Amazon, and Apple.
• The context: Rising oil prices threaten to undo recent progress on the inflation front. Meanwhile, investor patience for seemingly limitless investment in AI is starting to wear thin.
• Your move: Investors should expect volatility in the tech sector to intensify further. If Alphabet is any guide, expectations of even more AI capital expenditures could hurt stocks.

Wednesday will be a big day, starting with the Federal Open Market Committee (FOMC) releasing its monetary policy decision. Benchmark interest rates are widely expected to hold steady, but less clear is what FOMC members think about that decision. For one, will any FOMC voters formally dissent in favor of a rate hike? And if so, how many? 

Secondly, market watchers will be listening for the tone Chairman Kevin Warsh tries to set at the post-meeting press conference. He’s been reluctant to give any clues as to where policy might be going, so investors might run with any hawkish comments from the chairman. That would likely send Treasury yields and mortgage rates soaring.

Then the earnings floodgate will open. After Wednesday’s closing bell, Meta Platforms (META) and Microsoft (MSFT) will lead off a mega-cap gauntlet that extends into the following day, when Amazon (AMZN) and Apple (AAPL) report. From AI-driven cloud spending to the state of the digital ad market and hardware demand, these company results will be viewed as an indicator of consumer and business appetite.

All in all, 174 companies accounting for over 35% of the S&P 500’s market cap will be reporting results this week. Add that to a Fed decision, and you get markets that are primed for turbulence. Stay disciplined, and keep your wits about you.

On the Docket

Monday

• 8:30am ET | June Factory and Durable Goods Orders: These metrics give insight into underlying trends for leading cyclical indicators.  
• 10:30am ET | July Dallas Fed Manufacturing Activity: The Dallas Fed surveys manufacturing executives in the region on business conditions and their outlook.
• Earnings
  • Large & Mid-Caps: Welltower (WELL), Cadence Design Systems (CDNS), Nucor (NUE), Cincinnati Financial (CINF), Principal Financial Group (PFG), Brown & Brown (BRO), F5 Networks (FFIV), UDR (UDR), Universal Health Services (UHS)

Tuesday

• 8:15am ET | ADP Weekly Employment Change: This survey offers insight into weekly private sector employment trends. 
• 8:30am ET | June Wholesale Inventories: Wholesalers often operate as intermediaries between manufacturers and retailers, serving as a key part of the goods supply chain. 
• 8:30am ET | June Retail Inventories: Retailers often operate as the final step of the supply chain before goods are sold to consumers and businesses.
• 9:00am ET | May FHFA House Price Index: This is a broad measure of single-family house prices released by the Federal Housing Finance Agency. 
• 10:00am ET | July Richmond Fed Manufacturing Activity: The Richmond Fed surveys manufacturing executives in the region on business conditions and their outlook.  
• 10:00am ET | July Richmond Fed Services Activity: The Richmond Fed surveys executives in the region’s services industry on business conditions and their outlook. 
• 10:00am ET | July Conference Board Consumer Confidence: How consumers feel about economic conditions affect their spending habits. This survey places a particular focus on job availability and the state of the labor market.
•  10:30am ET | July Dallas Fed Services Activity: The Dallas Fed surveys executives in the region’s services industry on business conditions and their outlook.
• Earnings
  • Mega-Caps: Visa (V), Coca-Cola (KO), KLA-Tencor (KLAC), Seagate Technology Holdings (STX)
  • Large & Mid-Caps: PayPal (PYPL), Boeing (BA), Corning (GLW), S&P Global (SPGI), United Parcel Service (UPS), Illinois Tool Works (ITW), Mondelez International (MDLZ), American Tower (AMT), Sherwin-Williams (SHW), Royal Caribbean Cruises (RCL), Ecolab (ECL), Hilton Worldwide Holdings (HLT), NXP Semiconductors (NXPI), PACCAR (PCAR), Teradyne (TER), Carrier Global Corp (CARR), Ford (F), Arch Capital Group (ACGL), IQVIA Holdings (IQV), Centene (CNC), DTE Energy (DTE), Extra Space Storage (EXR), CenterPoint Energy (CNP), FirstEnergy (FE), Xylem (XYL), Hubbell (HUBB), PPG Industries (PPG), Incyte (INCY), CMS Energy (CMS), Veralto Corporation (VLTO), Omnicom Group (OMC), Expand Energy Corporation (EXE), Textron (TXT), Invesco (IVZ), CoStar Group (CSGP), Boston Properties (BXP), Pentair (PNR), Skyworks Solutions (SWKS)

Wednesday

• 7:00am ET | Weekly Mortgage Applications: Mortgage activity gives insight on demand conditions in the housing market. 
• 2:00pm ET | FOMC Interest Rate Decision: The Federal Reserve will announce any changes to monetary policy after the conclusion of its two-day FOMC meeting, in addition to providing commentary on the economy. It’s one of eight regularly scheduled meetings per year.
• Earnings
  • Mega-Caps: Microsoft (MSFT), Meta Platforms (META), Lam Research (LRCX), Procter & Gamble (PG)
  • Large & Mid-Caps: Amphenol (APH), Qualcomm (QCOM), Starbucks (SBUX), Vertiv Holdings (VRT), Fortinet (FTNT), General Dynamics (GD), Equinix (EQIX), Automatic Data Processing (ADP), Waste Management (WM), Robinhood (HOOD), Johnson Controls International (JCI), Aon Plc (AON), O’Reilly Automotive (ORLY), Boston Scientific (BSX), Carvana (CVNA), Public Storage (PSA), L3Harris Technologies (LHX), Entergy (ETR), Old Dominion Freight Line (ODFL), Ventas (VTR), Humana (HUM), Flex (FLEX), Garmin (GRMN), Chipotle Mexican Grill (CMG), CBRE Group (CBRE), WEC Energy Group (WEC), Vulcan Materials (VMC), Biogen (BIIB), Vici Properties (VICI), GE HealthCare Technologies (GEHC), Fair Isaac (FICO), American Water Works (AWK), Verisk Analytics (VRSK), CH Robinson Worldwide (CHRW), Bunge Global S.A. (BG), Smurfit WestRock (SW), Cognizant Technology Solutions (CTSH), Essex Property Trust (ESS), Lennox International (LII), Fortive (FTV), Invitation Homes (INVH), IDEX (IEX), Masco (MAS), Mid-America Apartment Communities (MAA), Regency Centers (REG), Everest RE Group (EG), Stanley Black & Decker (SWK), PTC (PTC), Generac Holdings (GNRC), Tyler Technologies (TYL), Align Technology (ALGN), MGM Resorts International (MGM)

Thursday

• 8:30am ET | June Personal Income and Spending: Consumer spending accounts for about two-thirds of economic growth in the U.S. 
• 8:30am ET | June Personal Consumption Expenditures Price Index: The Fed says this inflation metric is the best measure of price changes.  
• 8:30am ET | Weekly Jobless Claims: This high-frequency labor market data gives insight into initial and continuing filings for unemployment benefits. 
• 8:30am ET | 2Q GDP First Estimate: The primary measure of economic activity, Gross Domestic Product (GDP) is measured as total expenditure on U.S. goods and services.
• Earnings
  • Mega-Caps: Apple (AAPL), Amazon (AMZN), Mastercard (MA)
  • Large & Mid-Caps: Bristol-Myers Squibb (BMY), Stryker (SYK), Altria Group (MO), Southern Company (SO), Trane Technologies (TT), Quanta Services (PWR), Valero Energy (VLO), KKR & Co (KKR), Intercontinental Exchange (ICE), American Electric Power (AEP), Cigna (CI), Monolithic Power Systems (MPWR), Regeneron Pharmaceuticals (REGN), Air Products and Chemicals (APD), CRH (CRH), Arthur J. Gallagher & Co (AJG), Corteva (CTVA), Xcel Energy (XEL), Exelon (EXC), Coinbase (COIN), Live Nation Entertainment (LYV), YUM! Brands (YUM), Hershey (HSY), EMCOR Group (EME), Ingersoll Rand (IR), Martin Marietta Materials (MLM), Edison International (EIX), Eversource Energy (ES), Willis Towers Watson Public (WTW), DexCom (DXCM), Mettler-Toledo International (MTD), Labcorp Holdings (LH), First Solar (FSLR), International Paper (IP), Alliant Energy (LNT), Weyerhaeuser (WY), Avery Dennison (AVY), GoDaddy (GDDY), Camden Property Trust (CPT), Huntington Ingalls Industries (HII), Erie Indemnity (ERIE), Baxter International (BAX), Norwegian Cruise Line Holdings (NCLH), A. O. Smith (AOS), Builders FirstSource (BLDR)

Friday

• 8:30am ET | 2Q Employment Cost Index: This is the most comprehensive measure of worker compensation, including wages, bonuses, benefits and more. 
• 9:45am ET | July Chicago Business Barometer: The barometer provides information on U.S. economic activity and business conditions, consisting of seven activity indicators and three buying policy indicators. 
• 10:00am ET | July University of Michigan Consumer Sentiment: Consumer feelings about economic conditions affect their spending habits. This survey places a particular focus on inflation and its trajectory.
• Earnings
  • Mega-Caps: Exxon Mobil (XOM), AbbVie (ABBV), Chevron (CVX), Linde (LIN)
  • Large & Mid-Caps: Eaton Corp (ETN), Colgate-Palmolive (CL), Dominion Energy (D), Ares Management Corp (ARES), Ameren (AEE), Cboe Global Markets (CBOE), EchoStar (ECHO), T. Rowe Price Group (TROW), Church & Dwight (CHD), Moderna (MRNA), LyondellBasell Industries (LYB), Franklin Resources (BEN), Federal Realty Investment Trust (FRT), AES (AES)

Note: Companies with at least $200 billion in market capitalization are classified as “Mega-Caps,” while others are shown in the “Large & Mid-Caps” sections.

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