July 10, 2017

Earnings of major banks, due to be released at the end of the week, will most likely be the prime market mover this week, Prudential’s Chief Market Strategist Quincy Krosby said Monday in her weekly “Connecting the Dots” outlook.

Federal Reserve Chair Janet Yellen’s testimony before Congress on Wednesday and Thursday also may be a factor.

As several big banks report their quarterly earnings at the end of the week, among the details that investors will be considering are such things as loan growth, Krosby said.

“When we talk about the earnings season, we are always looking back,” Krosby said. “What we want to hear from them is what you see looking ahead.”

Yellen will testify before the U.S. House of Representatives and Senate on Wednesday and Thursday on the Fed’s biannual report on monetary policy. While her opening statements to the House and Senate will be the same, the questions that follow will be different, Krosby said.

“Investors want to hear her remarks regarding the trajectory of monetary policy, given that inflation remains stubbornly flat,” Krosby said. “Also, she is sure to be asked about the plan to wind down the Fed’s $4.5 trillion balance sheet.”

As far as economic data this week, the Consumer Price Index and Producer Price Index, both released Thursday by the Bureau of Labor Statistics, have the potential to move the market. Analysts will be looking for any shift in consumer spending and for any indication about inflation. 

To talk to Quincy about her views of the market, contact Lisa M. Bennett or Dara Scerbo.

Read Quincy Krosby’s full Q2 Market Commentary: Tug of War.

Lisa M. Bennett
phone: 973-802-2894

Dara Scerbo
phone: 973-367-9318

The views and opinions are those of the author at the time of publication and are subject to change at any time due to market or economic conditions. This solely for informational purposes. This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.
The Prudential Insurance Company of America Newark, N.J.