Packed Economic Calendar, Big Merger with Yahoo and Verizon, US Stock Markets
July 25, 2016
Monday – July 25
The financial markets get set for a big week of events that includes a packed economic calendar with data on U.S. economic growth, housing, manufacturing and consumer attitudes. In addition, the heart of earnings season will take place this week. The big event will be the two-day Federal Open Market Committee meeting that kicks off tomorrow and will end Wednesday with the 2:00 p.m. ET release of the monetary policy statement. There is no chance of an interest rate hike to the short-term Fed Funds Rate, but the language may give some clues for hikes in the future.
A big merger deal took place on Monday which brings an end to independence at multi-national technology company Yahoo, after it was announced that Verizon is purchasing the storied company in a deal worth $4.83 billion. Yahoo burst onto the scene early in the Internet age in 1994 founded by Jerry Yang and David Filo at Stanford University. The website was originally called “Jerry and David’s Guide to the World Wide Web.” Soon after the site was renamed, Yahoo, with the backronym “Yet Another Hierarchical Oracle.” The deal is expected to be approved by regulators and should be finalized by early 2017.
U.S. Stock markets begin the week lower after the closely watched S&P 500 Stock Index closed higher last Friday, capping four straight weeks of gains. Friday’s positive close for the S&P was the seventh all-time high in the previous 10 trading days. A strengthening of U.S. economic data in the past two to three weeks, positive earnings coupled with the low interest rate environment have propelled Stocks higher. The big question will be whether or not markets can push higher in the weeks to come in spite of such lofty levels.
