Updated: Aug 8, 2022
Happy Sunday! We have a very busy week ahead. Let's take a look at what we should be watching.
Economic calendar
It's going be very important to watch CPI, PPI, and Consumer Sentiment this week. I'll have my eye on all three. CPI and PPI will give us a good sense as to what sort of inflationary pressure was prevalent in July. Energy and food prices slumped, so that should help to ease some of the pressure.
On the other side, Consumer Sentiment has been near historic lows due to a combination of persistent inflation and increasing concerns about economic weakness. It will be worth watching that data set as well as it's likely many are still quite pessimistic.
Earnings calendar
We have a bunch of potentially interesting earnings reports coming out next week that could move markets. I'll be watching BNTX, CAH, CYBR, D, DIS, FOX, GOLD, HLT, JACK, MRO, RBLX, RL, SAND, SIX, SWIR, SYY, TSN, TTD, U, VLO, and WEN.
Treasury calendar
We have another big week of auctions ahead, with $228B on offer from the US Treasury. What makes this week especially interesting is the 10-year auction on Wednesday after CPI, and the 30-year auction on Thursday after PPI.
If these auctions are well subscribed we could see a pretty strong bid in risk assets, and in particular longer duration risk. On the other side, however, if they do not see strong demand, particularly from foreign buyers, I think we see rates march even higher from the recent relief we saw. In such a situation we would likely see increasing volatility in equities, and especially longer duration risk.