Week Ahead Market Report: 8/2/2010
Monday, August 2, 11:37 AM ET

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Good morning, I’m KRISTIN BIANCO, with the “Week Ahead Market Report” for August 2, 2010.

Equities rallied around the world today. Hong Kong’s Hang Seng index jumped higher by 1.8 percent. Japan’s Nikkei 225 edged up 0.3 percent and China’s Shanghai Shenzen rose 1.7 percent.

European shares are moving lower this morning, with the German DAX up 1.8 percent. Britain’s Footsie 100 surged 1.9 percent in mid-day trading.

U.S. S&P 500 index futures were gaining ground, moving up by 1.2 percent in pre-market action.

Crude oil is up over 1 percent on Monday morning, trading just under $80 a barrel.

Spot gold was flat in early Monday morning trading, at around $1,178 an ounce.

On the economic front, the ISM manufacturing index will be released on Monday and is expected to fall to 54 in July, down from a 56.2 index level in June. Any reading over 50 indicates that the manufacturing sector is expanding.

On Tuesday, Detroit will release its auto sales totals for July. Auto sales are expected to have rebounded slightly to an annual rate of 8.8 million from 8.4 million in June.

On Wednesday, the ISM service index will be released. The July number is expected to have moved slightly lower to 53 from 53.8 in June, showing an economy that is still expanding but at a slower rate.

All eyes will be on the employment situation report for July on Friday. The employment report is expected to show a loss of 70,000 jobs in July coming on the heels of a loss of 125,000 jobs in June. The unemployment rate is expected to rise to 9.6 percent, up from June’s 9.5 percent level.

Earnings season will continue strong this week with 106 S&P 500 Index component companies reporting second quarter earnings.

Agriculture giant, Archer Daniels Midland (NYSE:ADM) will post profits before the market opens on Tuesday, with analysts expecting 52 cents per share.

Pfizer (NYSE:PFE) will post second quarter profits on Tuesday before the market opens, with a consensus estimate of 52 cents per share.

Also on Tuesday, Dow Chemical (NYSE:DOW) will report before the market opens. The consensus number is 56 cents a share.

Toyota (NYSE:TM) will report results on Wednesday. Analysts are expecting 10 cents per share in earnings.

On Wednesday, deep water driller Transocean (NYSE:RIG) is scheduled to post profits after the market closes, with analysts expecting $1.71 per share for the second quarter.

Insurer CIGNA (NYSE:CI) will report profits on Thursday before the market opens with a consensus estimate of $1.01 per share.

AIG (NYSE:AIG) will report earnings on Friday before the market opens with expectations of 99 cents per share.

Join us on Friday for the “Weekly Market Wrap” and have a wonderful week.