1. Paris Air Show: All eyes are on Boeing as the Paris Air Show kicks off Monday.
The country’s GDP grew at 6.2% in the quarter that ended in June, the slowest quarterly growth rate since 1992 and down from 6.4% in the previous quarter, according to government figures released Monday.
Monthly data for June was better than expected but likely doesn’t mark the beginning of a turnaround, according to Capital Economics.
The show is typically an opportunity for Boeing (BA) and Airbus (EADSF) to announce orders for hundreds of aircraft. That will be harder this year for the US jetmaker, which has halted deliveries of its 737 Max following two deadly crashes.
2. Tariff hearings begin: Companies and trade groups are about to get their say on the wisdom of US tariffs on an additional $300 billion worth of Chinese exports.
2. Oil plunges: US oil futures plunged to a new 15-month low on Tuesday, dropping 3.5% to below $49 per barrel.
Stocks have broadly rallied on the expectation that the Federal Reserve will soon begin cutting rates, making it cheaper for companies to borrow money. Analysts warn that bank stocks could be the exception.
“It is hard to find meaningful positive offsets in an environment of declining rates and muted economic activity,” analysts at Keefe, Bruyette & Woods said in a recent note.
Also on the radar is what executives have to say about credit quality, and their outlook on the health of the economy.
3. Prime Day: Amazon (AMZN) Prime Day is here.
This year, the global discount event will run for two days. Prime Day will feature more than 1 million deals, including what Amazon boasts will be the “the biggest deals ever” on Amazon Music, Prime Video and Alexa-enabled devices.
Amazon, which raked in $232 billion in sales last year, does not break out revenue on Prime Day. But global sales this year are expected to hit $5.8 billion, according to Coresight Research. Last year, Amazon generated $3.9 billion, according to the research firm.
3. Markets rise: Global stocks are starting off the week on a positive note.
The Dow is set to rise 15 points Monday, or almost 0.1%. The Nasdaq and S&P 500 are tracking similar increases.
Shares of Anheuser Busch InBev fell nearly 2% in Belgium after the company shelved plans for an IPO of its Asia business, canceling what would have been the biggest public offering of the year.
In Asia, Hong Kong’s Hang Seng climbed 0.4% and the Shanghai Composite gained 0.2%. Japan’s Nikkei was flat. In Europe, Britain’s FTSE 100 jumped 0.2% in early trading, while France’s CAC 40 inched up 0.1%.
4. Coming this week:
Monday: Paris Air Show, US Treasury foreign ownership report
Tuesday: Adobe earnings, US housing starts, US Senate hearing on tariffs
Wednesday: Fed decision and press conference, earnings from Oracle (ORCL) and Barnes & Noble (BKS)
Thursday: US leading indicators, Bank of England rate decision, earnings from Kroger (KR) and Red Hat (RHT)
Friday: US existing home sales, Markit flash US manufacturing PMI