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Microsoft, Goldman Sachs, IBM and More Dow Stocks to Watch This Week


By Chris Lange


Earnings reporting season for the second quarter has gotten underway, and 24/7 Wall St. has put together a preview of the Dow Jones industrial average companies scheduled to report their quarterly results this week.


Goldman Sachs Group Inc. (NYSE: GS) is set to report its most recent quarterly results on Tuesday. Analysts are looking for $4.66 in earnings per share (EPS) and $8.74 billion in revenue. Shares closed the week at $226.41, with a consensus price target of $271.50 and a 52-week trading range of $214.64 to $275.31.


Johnson & Johnson (NYSE: JNJ) will share its latest quarterly earnings on Tuesday. The consensus estimates call for $2.07 in EPS and $20.37 billion in revenue. Shares ended last week at $125.93, in a 52-week range of $118.62 to $148.32. The consensus analyst target is $142.48.


International Business Machines Corp. (NYSE: IBM) is expected to report its second-quarter results on Wednesday. The analysts’ consensus forecast is EPS of $3.04 on $19.9 billion in revenue. Shares were changing hands at $145.90 as last week came to a close. The consensus price target is $167.70, and the stock has a 52-week range of $137.45 to $171.13.




Deutsche Bank says expects second-quarter profit above expectations


By Reuters


  • It added that it expects group revenues to be around 6.6 billion euros.
  • Deutsche Bank had been expected to publish its results on July 25.



Gold Price Forecast: Powell Testimony Likely to Maintain Downside Pressure


By Tim Clayton


With precious metals unable to gain defensive support, downside risks are liable to prevail in the short term, with the potential for fresh 2018 lows unless there is a significant shift toward a more dovish policy stance by Fed Chair Jerome Powell.


Gold edged higher early in the week, but there was resistance above $1,260 per ounce, and sellers gained fresh traction later in the week with a fresh retreat to near 2018 lows just below $1,240 per ounce. The dollar gained strong support against low-yielding assets including gold as U.S. yields proved attractive. The dollar trend will again have a crucial role in determining gold’s direction over the week as a whole, with gold continuing to lose ground if the U.S. currency maintains a robust tone.


U.S. data and monetary policy expectations will also inevitably be a key influence.


The industrial production release is due on Tuesday, with construction data on Wednesday. Survey evidence will be important, with the New York Empire manufacturing index on Monday and the Philly Fed release on Thursday.


Data releases overall are likely to be of secondary importance to Congressional testimony from Powell. He will testify to the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday. If he maintains a hawkish policy stance and reiterates that the Fed will continue to push interest rates higher, the dollar should maintain a firm tone. Any suggestion of two further rate increases this year would boost the currency, A more downbeat tone and concerns that trade issues could have a more serious negative impact would undermine the dollar and boost gold, although the most likely outcome is that the Fed chair will remain circumspect on the outlook.



Crude Oil Price Forecast: Trade Fears Dominate


By Gary Ashton


Working against the downward price pressure was news that U.S. stocks of crude oil declined by 12.633 million barrels in the week ended July 6, 2018, following a 1.245 million rise in the previous week. It is the most significant drop in crude inventories since the week ended Sept. 2, 2016. The sharp decline in the level of inventories came as a shock to oil traders and analysts who had forecast a drop of 4.489 million barrels.


Despite the appearance of strong oil demand from the larger-than-expected inventory draw, concerns about a growing trade dispute between China and the U.S. related to a 10% tariff on $200 billion worth of Chinese goods plus an end to oil supply disruptions in Libya took precedence in the market and pushed oil lower for the week.


Oil price volatility could pick up next week as supply and demand themes continue to play out in the market. For example, Russia has indicated that OPEC+ could increase oil production by more than 1.0 million barrels per day (mb/d) if required. Russia has long advocated higher oil output in a rising price environment to shore up its funding coffers. Increased production from Russia could put downward pressure on prices.



Sterling Week Ahead: Brexit Turbulence Will Weigh on GBP


By Nick Cawley


It’s likely to be a long week for UK PM Theresa May as Conservative hardliners ready themselves for clashes over the UK’s recent Brexit negotiation bill.


A slew of UK data this week with all eyes on Tuesday’s employment and wages release and Wednesday’s inflation numbers. In addition, BOE’s Carney, Cunliffe and Stheeman testify to the Treasury Select Committee on Tuesday on the Financial Stability Report. UK employment is expected to remain at a near four-decade low while inflation is likely to edge higher, fueling thoughts that the UK central bank may hike rates at the next MPC meeting on August 2.



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