NEW YORK—Investors and economists will get an update on the global economic recovery this week as corporations will begin to announce second-quarter earnings and give their projections for the rest of the year.
The earnings reports will give investors some direction as to where the economy is headed. In recent weeks, analysts have been a bit skittish over the prospects of U.S. economic growth, prior to last week’s stock market gains.
Over the last month or so, new headwinds are suggesting that the economic recovery may not be as solid as once thought—U.S. unemployment is still close to record-high, the Chinese economy is cooling, and in Europe, a burgeoning debt crisis may plunge much of the eurozone back into recession.
But most analysts are still expecting companies to beat expectations. According to industry data firm Thomson Reuters, S&P 500 companies are expected to post second-quarter net income growth of around 27 percent on average.
Five major Dow Jones Industrial Average blue chip stocks are posting earnings this week, starting on Tuesday with chipmaker Intel Corp., Internet giant Google Inc. and banking heavyweights JPMorgan Chase & Co., Citigroup Inc., and Bank of America Corp. will report later in the week, as will conglomerate General Electric Co.
June’s retail sales report will also be released on Wednesday, followed by the government’s initial unemployment report on Thursday.
“Major markets went from vastly oversold last Tuesday to vastly overbought by Friday and the S&P 500 now faces significant resistance at the 1080-1100,” said John Nyaradi of Wall Street Sector Selector.
The earnings reports will give investors some direction as to where the economy is headed. In recent weeks, analysts have been a bit skittish over the prospects of U.S. economic growth, prior to last week’s stock market gains.
Over the last month or so, new headwinds are suggesting that the economic recovery may not be as solid as once thought—U.S. unemployment is still close to record-high, the Chinese economy is cooling, and in Europe, a burgeoning debt crisis may plunge much of the eurozone back into recession.
But most analysts are still expecting companies to beat expectations. According to industry data firm Thomson Reuters, S&P 500 companies are expected to post second-quarter net income growth of around 27 percent on average.
Five major Dow Jones Industrial Average blue chip stocks are posting earnings this week, starting on Tuesday with chipmaker Intel Corp., Internet giant Google Inc. and banking heavyweights JPMorgan Chase & Co., Citigroup Inc., and Bank of America Corp. will report later in the week, as will conglomerate General Electric Co.
June’s retail sales report will also be released on Wednesday, followed by the government’s initial unemployment report on Thursday.
“Major markets went from vastly oversold last Tuesday to vastly overbought by Friday and the S&P 500 now faces significant resistance at the 1080-1100,” said John Nyaradi of Wall Street Sector Selector.
