Title: 5 Major Financial Market Developments Today: US Inflation Forecast to Accelerate, KKR and PLTR Set to Release Earnings
By Investing.com Staff, Published on August 7, 2023
1. US Stock Futures on the Rise; Focus Shifting towards Inflation Data
In the premarket session, US stock futures showed positive momentum on Monday as investors awaited the release of the monthly inflation data later in the week, along with more corporate earnings reports. As of 06:36 am Eastern Time, blue-chip stocks were up by 53.4 points, or 0.15%, while the tech-heavy stocks registered a 0.25% increase.
Last week, Wall Street’s main indexes experienced a downward trend, with both benchmarks and technology-related stocks reporting their fourth consecutive days of losses. This losing streak, the longest since May, was influenced by weaker-than-expected July economic data and Apple’s disappointing hardware sales.
This week, all eyes are on the US Consumer Price Index (CPI) for July, which may shed light on the Federal Reserve’s potential future policy actions. Additionally, Disney will unveil its fiscal third-quarter earnings on Wednesday.
2. US Inflation Predicted to Accelerate, Causing Concerns
Economists anticipate that US inflation will rise for the first time since June 2022, potentially complicating the narrative of slower price growth in the world’s largest economy. The US Consumer Price Index (CPI) is projected to increase to an annual rate of 3.3% in July, surpassing the 3.0% recorded in the previous month. Core CPI, which excludes volatile items like food and energy, is expected to remain unchanged at 0.2%.
On Thursday, the release of CPI data will provide further insights into the economy, with expectations that the annual rate of core CPI will stand at 4.7%. The Federal Reserve has emphasized that its policy decisions will be data-dependent, making these numbers crucial for policymakers. While the Fed’s target is to keep inflation at 2%, recent data suggests that tightening measures have contributed to price stability. However, if inflation signals a resurgence, policymakers have expressed readiness to raise interest rates further.
3. Anticipating Earnings Announcements from KKR and Palantir
Today, asset management giant KKR, data analytics company Palantir, and entertainment company Paramount Global are scheduled to release their latest quarterly earnings. Although the second-quarter earnings season is coming to an end, over 84% of S&P 500 companies have already reported their earnings, with nearly three-quarters surpassing Wall Street expectations.
Disney’s earnings announcement is also eagerly anticipated this week, with particular attention given to CEO Bob Iger’s strategy for revitalizing the film and television business, especially after the disappointments of “Elemental” and “Haunted Mansion” at the box office. Recent reports suggest that Iger has employed two former lieutenants to explore strategic options for Disney’s prominent sports network, ESPN.
4. “Barbie” Film Achieves $1 Billion in Global Box Office Sales
The film “Barbie,” directed by Greta Gerwig, has reached a remarkable milestone by surpassing $1 billion in global box office sales within just 17 days since its debut. Warner Bros. Discovery, the film’s distributor, reported that “Barbie” earned $459.4 million in North America and $572.1 million internationally, with Gerwig becoming the first woman to direct a billion-dollar film on her own.
Warner Bros. noted that the film’s box office performance exceeded even their most optimistic forecasts. Additionally, “Barbie” joins the ranks of six films that have surpassed the billion-dollar mark since the COVID-19 pandemic began.
5. Oil Hovers Near Four-Month Highs
Oil prices experienced a slight dip but remained near levels not seen since mid-April. Last week, Saudi Arabia and Russia, the world’s leading oil producers, announced their plan to extend production cuts for an additional month, aiming to tighten global markets further.
Investors should closely monitor Chinese economic data and details of economic stimulus policies this week, in addition to the production cuts by Saudi Arabia and Moscow. As of 6:36 am Eastern Time, oil prices stood at $81.96 per barrel for WTI crude, marking a 1% decrease, and $85.39 per barrel for Brent crude, experiencing a 0.99% decline. Last week, both US oil and Brent crude registered their sixth consecutive week of gains, their longest winning streak since December 2021 to January 2022.
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Compiled by Liu Chuan
© Reuters 5 big financial market events today: US inflation may accelerate KKR, PLTR to announce earnings
Investing.com – Here are the top 5 things you need to know about the financial markets on Monday, August 7:
1.US stock futures are ahead,focus shiftPassingswellingdata
US stock futures rose in the premarket on Monday, as investors awaited monthly inflation data later in the week, as well as more corporate earnings reports.
Investing.com’s US stock quotes show that, as of 18:36 Beijing time (06:36 am Eastern Time), blue chip stocks rose 53.4 points, or 0.15%, and rose 0.25% Up 0.37%.
Wall Street’s main indexes closed lower last week, with benchmarks and tech-heavy stocks posting their fourth straight day of losses, the longest losing streak since May. Data showing a weaker-than-expected July and weaker-than-expected hardware sales from tech giant Apple (NASDAQ: ) weighed on sentiment.
The focus of economic events this week is the US Consumer Price Index (CPI) for July, and the data could reveal a deeper level of policy that the Fed may adopt in the future. Meanwhile, Disney (NYSE: ) will release its fiscal third quarter earnings on Wednesday (9th).
2.beautifulcountryPassingswellingfearspeed up
Economists predict US inflation will accelerate for the first time since June 2022, a scenario that could complicate the narrative of slower price growth in the world’s largest economy.
The US consumer price index (CPI) is expected to accelerate to an annual rate of 3.3% in July, up from 3.0% in the previous month. It is expected to remain at 0.2%.
CPI data due on Thursday, which also excludes highly volatile items such as food and energy, is expected to slow to an unchanged annual rate of 4.7%.
Fed officials have previously said that future policy will “depend on the data,” so they will be keeping a close eye on the numbers.
The Fed’s aim is to bring inflation down to 2%. Still, data since last summer suggests tightening has helped keep prices down. However, policy makers have indicated that they are prepared to raise rates further if inflation shows signs of rising again.
3.Stay tuned for the earnings season, KKRPalantirannounces earnings today
Asset management giant KKR (NYSE: ), data analytics company Palantir (NYSE: ) and entertainment company Paramount Global (NASDAQ: ) will report their latest quarterly results on Monday.
But now, the second quarter earnings season is over. More than 84 percent of the companies in the S&P 500 have reported earnings, with nearly three-quarters of them beating Wall Street expectations, according to FactSet.
In addition, Disney will also report earnings this week. How CEO Bob Iger can revive Disney’s film and television business is expected to be one of the focuses, especially after “Elemental” and “Haunted Mansion” failed at the box office.
Meanwhile, reports have emerged that Bob Iger has hired two former lieutenants to explore strategic options for Disney’s high-profile sports network, ESPN.
4.“Barbie” hits the box office10100 millionDollar
Greta Gerwig’s “Barbie” has grossed more than $1 billion worldwide in just 17 days since its debut, according to distributor Warner Bros. Discovery (NASDAQ: ).
Warner Bros. said. Discovery’s “Barbie” grossed $459.4 million in North America and $572.1 million overseas, while Greta Gerwig became the first woman to direct a film that grossed more than $1 billion alone.
Warner Bros. noted. that the film’s box office receipts “beat even our most optimistic forecasts.”
In addition, “Barbie” is the sixth film since the epidemic to exceed a billion dollars at the box office.
5.Oil is hovering near four-month highs
Oil prices fell slightly, but remained near levels not seen since mid-April. Last week, Saudi Arabia and Russia, the world’s top oil producers, announced plans to extend production cuts for a month to further tighten global markets.
In addition to production cuts from Saudi Arabia and Moscow, investors also need to pay attention to Chinese economic data and details of economic stimulus policies this week.
As of 18:36 Beijing time (6:36 am Eastern Time), Investing.com Commodity Markets showed: it fell 1% to $81.96/barrel; it fell 0.99% to $85.39/barrel.
Last week, US oil and Brent rose for a sixth consecutive week, the longest winning streak since December 2021 to January 2022.
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Compiler: Liu Chuan
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