Investors in US stocks have fluctuated moods this week. The Dow Jones Index rebounded after a plunge of more than 700 points on Monday, and reached a record high of 35,000 points on Friday. The market is looking forward to seeing more catalysts. Next week can be said to be the highlight of this summer, including the Federal Reserve (Fed) will announce currency decisions, and the financial reports of heavyweight technology companies such as Apple, Microsoft, and Tesla will be announced.
Analysts describe that the financial reports of many companies will debut next week, and the grand occasion is like the Summer World Series. Including apple (AAPL-US), Tesla (TSLA-US), Microsoft (MSFT-US)、Alphabet(GOOGL-US), and Boeing in the industrial sector (BA-US), Pioneer Heavy Industries (CAT-US), and consumer goods giant P&G (PG-US),McDonald’s (MCD-US)。
The Fed will announce a monetary policy decision early in the morning on Thursday (29th, Taiwan time). It is expected that the market will not move. Chairman Bauer may not release too many unexpected messages, but if he talks about reducing debt purchases The plan will affect the trend of stock market and bond yields.
Although inflation remains high, Deutsche Bank analyzed that the Fed does not expect to signal a reduction in debt purchases next week.
Allianz chief economist Mohamed El-Erian said that most of the news that the market will hear next week will be “it is expected that some of the conditions for debt purchases will be gradually reduced by the end of the year.”
In addition, the United States will announce the second quarter of gross domestic product (GDP), which is expected to be the strongest quarter of economic growth after the epidemic. Next Friday will also announce the inflation index that the Fed values, the personal consumption expenditure (PCE) price index.
Art Hogan, chief market strategist at National Securities, said: “Corporate financial reports will be the focus. If the trend we have seen recently continues into next week-the current situation seems likely to develop in this way, the market will find a path of least resistance to rising.”
Refinitiv estimates that US companies’ profits in the second quarter are expected to grow by 78.1%.
The three major US stock indexes closed at a new high on Friday, and the Dow Jones Industrial Average closed above the 35,000 mark for the first time. Over the past week, the Dow Jones has gained 1%, the S&P 500 and Nasdaq each rose 1.9% and 2.8%, and the Russell 2000 index, which is dominated by small stocks, also rose 2.1%.
Large technology stocks have recently become the dominant force in the stock market. Apple, Microsoft, Amazon and Alphabet have gained 5% to 7% since July, surpassing the S&P 500’s 1.6%.
Some analysts worry that technology companies may not be able to meet the high expectations of investors. Greenwood Capital Investment Chief Walter Todd said: “This is a forward-looking question. Can they meet the expectations reflected in the stock price?”