- SpaceX stock experienced a volatile week, closing at a new low of $108.37, down 3.4% on Friday, and has fallen approximately 30% from its market debut last month.
- The US stock market is facing a critical week with a jobs report due on August 7 and significant corporate earnings announcements, which are expected to influence market direction.
- SpaceX's earnings report is anticipated to reveal significant capital expenditures, projected to increase from $48.7 billion this year to $118.4 billion by FY 2028.
- Concerns over the stock market are heightened due to geopolitical tensions and uncertainty regarding interest rates, with the Fed's recent decisions contributing to market volatility.
- The upcoming jobs report is expected to show an increase of 91,000 jobs and an unemployment rate of 4.3%, which could impact investor sentiment and Fed policy.
The U.S. stock market is bracing for a critical week as investors await the July jobs report and earnings from major companies, including SpaceX, which recently closed at a new low of $108.37, down 5.8% for the week.
SpaceX's volatility is attributed to concerns over its capital expenditures, projected to rise from $48.7 billion this year to $118.4 billion by FY 2028, alongside a significant debt increase from $41.7 billion to over $218 billion in the same period.
“A potential merger between SpaceX and Tesla would likely trigger intense scrutiny from Beijing,” sources indicated, highlighting geopolitical tensions affecting investor sentiment.
The upcoming jobs report is expected to show an increase of 91,000 jobs and an unemployment rate of 4.3%, which could influence Federal Reserve policy.6
“The market has kind of been held hostage to the price of oil and the yield on the 10-year (Treasury),” said Art Hogan, chief market strategist at B. Riley Wealth.
With over a quarter of the S&P 500 set to report earnings, including Caterpillar and Merck, the overall earnings picture is tracking for a 27.7% increase on an adjusted basis from last year, potentially providing stability amidst the uncertainty.
“The earnings picture overall should provide stability,” noted PNC's Yung-Yu Ma.
“Reuters poll sees July nonfarm payrolls up 91,000 and unemployment at 4.3%, while Fed funds futures imply a 64% chance of a September rate increase. SpaceX's second-quarter earnings are due Aug. 4, and an Aug. 6 lockup expiration will free as much as 20% of shares for sale.”
Yahoo Finance
