August Earnings Season Kicks Off With Manufacturing Data, Jobs Report Key Catalysts
The week of August 3-7 brings critical economic indicators including manufacturing PMI and the July jobs report, alongside earnings from major retailers, chipmakers, and AI-focused companies that will test whether strong corporate profits can persist amid slowing economic growth.
Earnings Calendar and Key Reports
Earnings season continues, with the bulk of forthcoming reports outside of Nvidia to come from companies that could speak more on the real economy, including McDonald's, Kraft Heinz, Costco Wholesale, Walt Disney, as well as tech companies including Palantir Technologies and chipmakers including Advanced Micro Devices. Nvidia will report its results Aug. 26.
Manufacturing Sector Under Scrutiny
The ISM Manufacturing PMI for July gives the market the first chance to see if heightened investment in AI infrastructure impacts the manufacturing sector, as manufacturing continued to contract in June, with the PMI reading 49.0. A PMI reading above 50 would indicate the manufacturing sector is in expansion and would have a positive influence on the outlook for cyclical stocks, while if the PMI comes in below 49, that would indicate that manufacturing growth is still concentrated to the technology and AI sectors.
Jobs Report Critical for Policy Path
The July nonfarm payrolls report will be released on August 7 at 8:30 AM ET, after the June report came in below expectations at 57,000 jobs. The Jobs Report will show whether Monetary Policy will aid or threaten the high Multiple AI Stocks, with the market becoming more concerned with the sustainability of demand given earnings and macro movements.
Chipmaker Rebounds on AI Demand
Analysts expect AMD earnings of $1.61 per share, up from 48 cents per share in the year-ago period, with revenue forecast to arrive at $11.3 billion (+47% YoY). Christopher Rolland anticipates "better earnings and guidance" on strong demand for AMD's data center chips, with the analyst believing market share gains from AMD's MI350 GPU and EPYC CPU will support the near-term outlook. This earnings strength will be closely watched as a barometer for sustained AI infrastructure spending.