The coming week will focus on retail sales and earnings reports. The July sales reports, which account for about 10 percent of all retail sales, will be released Thursday. With the hiring numbers down for July, sales figures for the larger department, discount, clothing and drugstore chains are believed to follow suit and follow from the previous month, according to experts.
On Friday, the Labor Department reported that the U.S. economy saw only 162,000 jobs added in July, which was significantly less than what had been forecast. The unemployment rate had dropped from 7.6 percent in June to 7.4 percent in July.
With the tight labor markets, many predict that consumer spending, which accounts for 70 percent of the U.S. economy, will definitely feel the impact. Second quarter earnings are slowing down, but a number of popular and significant companies are scheduled to report.
Those companies scheduled to make their reports within the coming week are Walt Disney, Time Warner, Vornado Realty Trust, Archer Daniels Midland, Tyson Foods, CVS Caremark, MGM Resorts, Groupon, and Molson Coors Brewing.
On Tuesday the international trade deficit is due. Economists expect the totals to have narrowed in June, as exports rose modestly and imports slowed after having experienced several months of gains. The Institute for Supply Management’s non-manufacturing index, which gauges activity across a range of sectors that include agriculture and mining, is expected to be released on Monday. The non-manufacturing index is expected to jump about a point, to end at 53.3.
Federal Reserve Board members Richard Fisher, Charles Evans and Charles Plosser will all give speeches next week. Investors will be anxiously awaiting and will search for any clues on whether the Federal Reserve is preparing to shift from its policy of long-term stimulus.
Currently looking at the stocks that will be of major discussion next week, Molson Coors has seen as slight drop of .12 to $50.79, CVS Caremark dropped .33 to $61.84, and Vornado Realty Trust dropped .78 to $83.38. However, Tyson Foods, CVS Caremark, Time Warner, Archer Daniels Group, and Walt Disney have all seen an increase.
The expectation of the analysts is that retail stocks may drop in coming days because they are not expected to release optimal reports. Many believe that instead, they will release data that shows sales are sluggish and goals or expectations were not met.
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