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Johnson & Johnson, D.R. Horton, Taiwan Semi: 3 things to watch

Published 19/07/2023, 20:58
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Investing.com -- Stocks were rising as investors took in a slew of corporate earnings, including a miss by Goldman Sachs (NYSE:GS) because of write-downs and a slump in investment banking.

But earnings will continue to pour out this week. Analysts are listening to what executives say about business and consumer behavior, and what they have to say about the outlook for the remainder of the year.

Economists in recent days, including those at Goldman, have lowered the outlook for a possible recession as economic data continues to point to resiliency. Next week, investors will get the first reading of second quarter gross domestic product, which is expected to edge higher than the previous quarter, and the personal consumption expenditure index, which is a key measure of inflation.

The Federal Reserve will also be announcing its next interest rate move on Wednesday at the end of its two-day meeting. That meeting comes before the readings of GDP and PCE, though futures traders largely expect the Fed will raise rates another quarter of a percentage point.

It's what Chair Jerome Powell says at the press conference after the rate decision that investors will be listening for, however. Powell could provide hints as to the Fed's thinking about possible rate hikes down the road, or an indication that it is close to the end of its tightening as inflation heads toward its 2% target rate.

Here are three things that could affect markets tomorrow:

1. Johnson & Johnson

The pharmaceutical giant Johnson & Johnson (NYSE:JNJ) is expected to report earnings per share of $2.62 on revenue of $24.7 billion. Fellow health-related company Abbott Laboratories (NYSE:ABT) is expected to report earnings per share of $1.05 on revenue of $9.7B.

2. D.R. Horton

The homebuilder D.R. Horton (NYSE:DHI) is expected to report earnings per share of $2.78 on revenue of $8.2B amid a boom in new housing construction.

3. Taiwan Semiconductor

Chip maker Taiwan Semiconductor Manufacturing (NYSE:TSM) is expected to report earnings per share of $1.07 on revenue of $15.4B.

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