I hope everyone had a great Fourth of July weekend. This week marks the beginning of the second-quarter earnings season. I always like to call earnings season “Judgment Day” for Wall Street. This is when we learn how well our companies have done over the last three months.
On Monday, the Treasury will hold the first of four auctions this week. The government is trying to sell $73 billion of debt in an effort to finance our massive deficit. We’ll also get a report on the ISM non-manufacturing index for June.
On Tuesday, the Reserve Bank of Australia, which is the Aussie equivalent of the Fed, is expected to stand pat on interest rates, despite some recent downbeat news.
Wednesday will mark the beginning of the G-8 summit in L’Aquila, Italy. Alcoa (AA) will be the first major company to report earnings. We’ll also get an important report on consumer credit for May.
On Thursday, Chevron (CHV) will report results. We’ll also get reports on chain store sales and initial jobless claims. There will be an interesting hearing on Capitol Hill when a House Financial Services discusses the Fed’s role in the financial overhaul.
Finally on Friday, we’ll get a report on the trade deficit for May. I’m expecting to see the trade deficit widen again. This will also be the deadline for the bankruptcy judge to approve GM’s plan to sell assets, or risk losing a big loan.