The Daily Breakdown examines the week ahead, which has Magnificent 7 earnings, key economic reports, and a looming Fed meeting.
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Monday’s TLDR
- Mag 7 earnings on watch
- Key week of economic events
- Fed decision in focus
What’s Happening?
Between earnings and economic events, it feels like one of the busiest weeks of the year.
Magnificent 7 earnings will continue to roll out. On Wednesday, Microsoft and Meta will report after the close, followed by Amazon and Apple on Thursday evening. By the end of the week, six of the Mag 7 components will have reported, leaving just Nvidia for later next month. Alphabet reported last week and increased its CapEx spending outlook for the year. Will others in mega-cap tech do the same (sending a positive read-through to chip stocks)?
It’s also a big week for earnings in general. Outside of the Mag 7, we’ll hear from companies like SoFi Technologies, PayPal, Ford, Coinbase, MicroStrategy, Starbucks, ExxonMobil, and many others.
On the economic front, we have several key events from Tuesday through Friday, including the second-quarter GDP report, the PCE inflation report (the Fed’s preferred inflation gauge), and the monthly jobs report. Sprinkled into the mix is the Fed meeting on Wednesday afternoon, where no rate cut is expected.
And lastly, “the US and EU have reached a high-stakes trade agreement that averts a damaging transatlantic tariff escalation just days before a critical August 1 deadline.” Here’s what we know.
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The Setup — Ethereum
Ethereum has been on fire, rising more than 50% so far this month. When we last looked at ETH a few weeks ago, it had just closed above $3,000. Now it’s knocking on the door of $4,000 — a level that has been resistance since 2024.
Now investors want to know, will this level be resistance again and force ETH to pull back? Or will Ethereum trigger a breakout and run higher? Remember, in 2021, Ethereum hit a record high of $4,867. To get there though, it still needs to clear $4,000.
Options
For investors who can’t trade or aren’t comfortable trading cryptocurrencies outright, they can consider ETFs for BTC and ETH. On the ETH front, ETHA remains the largest ETF by assets, while also supporting options trading.
Bulls can utilize calls or call spreads to speculate on upside, while bears can use puts or puts spread to speculate on downside. In either case, investors may consider using adequate time until expiration.
For those looking to learn more about options, consider visiting the eToro Academy.
What Wall Street Is Watching
INTC
Shares of Intel tumbled on Friday, falling more than 8% after the company reported earnings. While the company beat on revenue expectations, profits remain pressured. Under new leadership, Intel is trying to turn things around, but Q2 showed that management still has a ways to go. Dig into the fundamentals for INTC.
NKE
Shares of Nike are popping about 4% in pre-market trading, which would put the stock at its highest level since early March. The rally comes after analysts at JPMorgan upgraded the stock from neutral to overweight and raised its price target from $64 up to $93, implying more than 20% upside from Friday’s close.
BTC
After dipping down to about $114,500 on Friday, Bitcoin found its footing in weekend trading as it rebounded back toward the $120,000 level. While there have been some fireworks in crypto so far this month, Bitcoin has been relatively quiet since its breakout as it trades sideways and consolidates its recent gains. Check out the chart for BTC.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.