"Upcoming Week Features July Jobs Report, Big Tech Earnings, and Continued Dow Record-Breaking Run"

The Week Ahead: Big Tech Earnings and Jobs Report

Record-Breaking Week for Dow Jones Industrial Average

The Dow Jones Industrial Average and S&P 500 are on track to finish their third consecutive week of gains. This week, the Dow matched its longest streak of gains since 1987, with 13 consecutive positive sessions. The positive momentum in the markets can be attributed to cooling inflation data and better-than-expected earnings. Despite the economy not being extremely strong, it is still performing well. Investors are optimistic about a soft landing for the US economy.

July Jobs Report

Investors will be closely watching the July jobs report, which is due to be released next Friday. The labor market has been exceptionally strong, and the report is expected to show solid results. However, there may be signs of easing in jobs growth compared to June. The wage numbers will be closely monitored, as persistent wage growth could potentially lead to higher inflation. Market experts are not concerned about a repeat of the 1970s and 1980s, where wage growth caused significant inflation.

Big Tech Earnings

Second-quarter earnings season is currently underway, and the results thus far have been better than anticipated. About 81% of the companies in the S&P 500 that have reported have posted positive surprises. Next week, Apple and Amazon will be reporting their earnings. Both companies have seen their stock prices increase significantly this year, and investors will be looking for justifications for their valuations. The guidance provided by these companies will be especially important as they have a significant impact on the tech sector.

Outlook Ahead

While markets have performed well recently, there are still skeptics who urge traders to exercise caution. Tightening monetary policy could potentially have an impact on the economy. The recent decision by the Bank of Japan to ease its yield curve control is one example of how policy changes can affect markets. Additionally, market experts are keeping an eye on inflation, which could prove to be a tricky situation for the rest of the year. However, cooling inflation, a strong job market, and a resilient economy could lead to a favorable outlook for Wall Street.

Conclusion: The Impact on New Businesses

The current market trends, including the record-breaking week for the Dow Jones Industrial Average, strong jobs report expectations, and better-than-anticipated earnings from big tech companies, have implications for new businesses. While these trends may seem encouraging, it is important for new businesses to carefully evaluate the potential impact on their operations. The positive momentum in the markets indicates a favorable economic environment that can benefit new businesses. A strong job market signifies increased consumer spending power, which can potentially lead to higher sales and revenue for new businesses. Additionally, better-than-expected earnings from big tech companies demonstrate the potential for growth and profitability in the technology sector, offering opportunities for new businesses in this industry. However, it is important for new businesses to keep an eye on potential challenges. The tightening monetary policy and concerns about inflation could have repercussions on the economy. Higher interest rates and rising inflation could lead to increased borrowing costs and reduced consumer spending, which may pose challenges for new businesses seeking to expand or acquire necessary funding. Moreover, the guidance provided by big tech companies in their earnings reports will be crucial for new businesses operating in the tech sector. Understanding the market expectations and adapting to the changing dynamics will be essential for success in this highly competitive industry. In summary, while the current market trends offer some positive indications for new businesses, it is prudent to approach with caution and conduct thorough market analysis. Adapting to potential economic changes, staying informed about industry developments, and carefully managing resources will be essential for navigating the continually evolving business landscape. Article First Published at: https://www.cnbc.com/2023/07/28/july-jobs-report-and-more-big-tech-earnings-are-in-the-week-ahead.html