Earnings season kicks off next week with Alcoa (AA) posting its 2nd quarter results. In the meantime, a bevy of economic reports come down the pike in this holiday-shortened week. This morning, Factory Orders are expected to report a 1% gain for June, following a 1.2% loss the previous month.
On Wednesday, we look toward the ISM Services Index, which is expected to pull back for the June reading but remain well north of the “magic 50” level that indicates growth or contraction. Also, the ADP (ADP) Employment Survey is released Wednesday, which sets expectations for Friday’s all-important Non-Farm Payroll Employment report from the Bureau of Labor Statistics (BLS).
Weekly initial jobless claims and continuing claims will be released Thursday morning, as always. Expectations are for another slight decrease, but will likely stay well above the psychologically important 400,000 level. Year over year trends don’t look so bad, but month to month results have struggled lately.
The BLS employment report will again take the lion’s share of attention this week. May’s growth was disappointingly anemic. We will check the market’s reaction to ADP and other reports that may anticipate what the BLS numbers are on Friday. This could go a long way in understanding investor sentiment — both this week and next — during this Summer of Turbulence.
