Markets.com Logo
euEnglish
LoginSign Up

Week ahead: Tesla earnings and ECB set to hike

Jul 17, 2022
11 min read
Table of Contents

    Earnings season picks up pace on Wall Street with Tesla and Netflix reporting their latest financials alongside a number of Dow components. Meanwhile the European Central Bank is all set to raise interest rates for the first time in 11 years. 

    ECB 

    The European Central Bank (ECB) is set to raise rates for the first time in over a decade as it seeks to tackle spiralling inflation. At its June meeting, the ECB confirmed it would raise rates by 25bps in July and hinted at a 50bps move in September. Minutes from the meeting suggest the ECB could opt for a larger initial hike. “A number of members expressed an initial preference for keeping the door open for a larger hike at the July meeting,” the minutes said. However, most policymakers believe the first hike needs “to be prepared and explained carefully”, which would indicate a move of just 25bps. 

    Meanwhile markets have scaled back their bets for how far the ECB will go this year and next. Nomura economists believe the ECB will lift rates by 175 basis points through to March, but looming recession means the central bank will be cutting this time next year. 

    Markets will also pay close attention to the ECB’s anti-fragmentation tool, which it will be crucial to its ability to raise rates and normalise policy. The tool will be deployed to keep bond spreads in check as the ECB raise rates. Investors and the ECB will also be keeping a close eye on Italian politics this week with uncertainty about the Draghi government seeing Italian bond yields spike higher. 

    Tesla 

    A tough quarter for Tesla seems assured. Layoffs and supply chain woes suggest it’s not been a record-breaker. Tesla announced weaker-than-expected second-quarter vehicle deliveries of 254,695, its first sequential quarterly decline in two years, well below the 310,000 vehicles delivered in the first quarter, 

    JPMorgan cut its Tesla price target to $385 from $395 on the news, stating: “Lower production in Shanghai due to factors outside Tesla’s control is likely the largest contributor to the production shortfall pressuring deliveries during the quarter.” Analysts believe Tesla will report a $1.3 billion decline in profit from the first quarter. Q2 earnings will also be negatively impacted by an expected write-down on Tesla’s Bitcoin holding. 

    UK inflation 

    The latest inflation data for the UK will be closely watched by sterling traders. GBPUSD has fallen to 2-year lows and markets are increasingly worried about the economic outlook. CPI jumped to 9.1% in May and is expected to continue rising before topping out around 10% later this year. Last week Andrew Bailey, the governor of the Bank of England, struck a more hawkish tone. He said the Bank will act “forcefully” if necessary and that he uses that word because “we want people to see that there are more options on the table than another 25 bps”. 

     

    Earnings calendar 

    18.07  19.07  20.07  21.07  22.07 
    Bank of America Corp (BAC) PMO 

     

    Goldman Sachs Group Inc (GS) PMO 

     

    International Business Machines (IBM) AMC 

     

     Johnson & Johnson (JNJ) PMO 

     

    Netflix Inc (NFLX) AMC 

     

     

    Tesla Inc (TSLA) AMC 

     

    AT&T (T) PMO 

     

    Philip Morris International (PM) PMO 

     

     American Express (AXP) PMO 

     

    Schlumberger Ltd (SLB) PMO 

     

    Verizon Communications Inc (VZ) PMO 

     

    Economic calendar (BST) 

    Sun Jul 17  11:30pm  NZD  BusinessNZ Services Index 
      11:45pm  NZD  CPI q/q 
    Mon Jul 18  12:01am  GBP  Rightmove HPI m/m 
      All Day  JPY  Bank Holiday 
      9:00am  EUR  Italian Trade Balance 
      1:15pm  CAD  Housing Starts 
      3:00pm  USD  NAHB Housing Market Index 
      9:00pm  USD  TIC Long-Term Purchases 
    Tue Jul 19  2:30am  AUD  Monetary Policy Meeting Minutes 
      7:00am  CHF  Trade Balance 
      9:30am  GBP  Average Earnings Index 3m/y 
        GBP  Claimant Count Change 
        GBP  Unemployment Rate 
      10:00am  EUR  Final CPI y/y 
        EUR  Final Core CPI y/y 
      1:30pm  USD  Building Permits 
        USD  Housing Starts 
      3:30pm  AUD  CB Leading Index m/m 
      Tentative  NZD  GDT Price Index 
    Wed Jul 20  1:30am  AUD  MI Leading Index m/m 
      7:00am  EUR  German PPI m/m 
        GBP  CPI y/y 
        GBP  Core CPI y/y 
        GBP  PPI Input m/m 
        GBP  PPI Output m/m 
        GBP  RPI y/y 
      9:00am  EUR  Current Account 
      9:30am  GBP  HPI y/y 
      1:30pm  CAD  CPI m/m 
        CAD  Common CPI y/y 
        CAD  Median CPI y/y 
        CAD  Trimmed CPI y/y 
        CAD  Core CPI m/m 
        CAD  IPPI m/m 
        CAD  RMPI m/m 
      3:00pm  EUR  Consumer Confidence 
        USD  Existing Home Sales 
      3:30pm  OIL  Crude Oil Inventories 
      11:45pm  NZD  Trade Balance 
    Thu Jul 21  12:50am  JPY  Trade Balance 
      2:30am  AUD  NAB Quarterly Business Confidence 
      4:00am  NZD  Credit Card Spending y/y 
      Tentative  JPY  BOJ Outlook Report 
      Tentative  JPY  Monetary Policy Statement 
      Tentative  JPY  BOJ Policy Rate 
      7:00am  GBP  Public Sector Net Borrowing 
      Tentative  JPY  BOJ Press Conference 
      1:15pm  EUR  Main Refinancing Rate 
        EUR  Monetary Policy Statement 
      1:30pm  CAD  NHPI m/m 
        USD  Philly Fed Manufacturing Index 
        USD  Unemployment Claims 
      1:45pm  EUR  ECB Press Conference 
      3:00pm  USD  CB Leading Index m/m 
      3:30pm  NAT GAS  Natural Gas Storage 
    Fri Jul 22  12:00am  AUD  Flash Manufacturing PMI 
        AUD  Flash Services PMI 
      12:01am  GBP  GfK Consumer Confidence 
      12:30am  JPY  National Core CPI y/y 
      1:30am  JPY  Flash Manufacturing PMI 
      7:00am  GBP  Retail Sales m/m 
      8:15am  EUR  French Flash Services PMI 
        EUR  French Flash Manufacturing PMI 
      8:30am  EUR  German Flash Manufacturing PMI 
        EUR  German Flash Services PMI 
      9:00am  EUR  Flash Manufacturing PMI 
        EUR  Flash Services PMI 
      9:30am  GBP  Flash Manufacturing PMI 
        GBP  Flash Services PMI 
      1:30pm  CAD  Core Retail Sales m/m 
        CAD  Retail Sales m/m 
      2:45pm  USD  Flash Services PMI 
        USD  Flash Manufacturing PMI 

     


    Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

    Written by
    SHARE

    Markets

    • Palladium - Cash

      chartpng

      --

      0.71%
    • EUR/USD

      chartpng

      --

      -0.48%
    • Cotton

      chartpng

      --

      -0.84%
    • AUD/USD

      chartpng

      --

      -0.20%
    • Santander

      chartpng

      --

      2.07%
    • Apple.svg

      Apple

      chartpng

      --

      -0.53%
    • easyJet

      chartpng

      --

      -1.07%
    • VIXX

      chartpng

      --

      1.52%
    • Silver

      chartpng

      --

      -0.13%
    Table of Contents

      Related Articles

      VAPE Stock Soars 600%: What’s Happening with CEA Industries?

      VAPE Stock Soars 600%: CEA Industries, known by its ticker symbol VAPE, has recently seen a remarkable surge in its stock price, soaring by 600%.

      Ghko B|1 day ago

      DJT Stock Dips: What’s Going on with Trump Media?

      DJT Stock Dips: Trump Media & Technology Group (TMTG) has become a focal point in the media landscape, especially with the launch of its social media platform, Truth Social.

      Frances Wang|1 day ago

      Trending Stocks Today: PLTR Stock , MCVT Stock, SMCI Stock, NVDA Stock

      Trending Stocks Today: in the ever-evolving landscape of financial markets, certain stocks catch the attention of market participants due to their innovative approaches and strategic developments.

      Frances Wang|2 days ago
      Markets.com Logo
      google playapp storeweb tradertradingView

      Contact Us

      support@markets.com+12845680155

      Markets

      • Forex
      • Shares
      • Commodities
      • Indices
      • Crypto
      • ETFs
      • Bonds

      Trading

      • Trading Tools
      • Platform
      • Web Platform
      • App
      • TradingView
      • MT4
      • MT5
      • CFD Trading
      • CFD Asset List
      • Trading Info
      • Trading Conditions
      • Trading Hours
      • Trading Calculators
      • Economic Calendar

      Learn

      • News
      • Trading Basics
      • Glossary
      • Webinars
      • Traders' Clinic
      • Education Centre

      About

      • Why markets.com
      • Global Offering
      • Our Group
      • Careers
      • FAQs
      • Legal Pack
      • Safety Online
      • Complaints
      • Contact Support
      • Help Centre
      • Sitemap
      • Cookie Disclosure
      • Awards and Media

      Promo

      • Gold Festival
      • Crypto Trading
      • marketsClub
      • Welcome Bonus
      • Loyal Bonus
      • Referral Bonus

      Partnership

      • Affiliation
      • IB

      Follow us on

      • Facebook
      • Instagram
      • Twitter
      • Youtube
      • Linkedin
      • Threads
      • Tiktok

      Listed on

      • 2023 Best Trading Platform Middle East - International Business Magazine
      • 2023 Best Trading Conditions Broker - Forexing.com
      • 2023 Most Trusted Forex Broker - Forexing.com
      • 2023 Most Transparent Broker - AllForexBonus.com
      • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
      • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
      • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
      • 2024 Leading CFD Broker Africa - Brands Review Magazine
      • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
      • 2024 Best Mobile Trading App MENA - Brands Review Magazine
      • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
      • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
      LegalLegal PackCookie DisclosureSafety Online

      Payment
      Methods

      mastercardvisanetellerskrillwire transferzotapay
      The www.markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

      High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

      For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

      Markets.com operates through the following subsidiaries:

      Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

      Markets International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

      Close
      Close

      set cookie

      set cookie

      We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.