Wall Street Flat as Investors Await Jackson Hole
Tuesday 19 August 2025
Economic Calendar: 3-9 August 2025 | Bank of England Rate Decision & Major Earnings
Quick Overview: This Week's Key Events
Economic Releases:
Monday, 4 August: US Factory Orders and Durable Goods data (final revision)
Tuesday, 5 August: US Trade Balance and ISM Non-Manufacturing Index
Wednesday, 6 August: Eurozone Retail Sales data
Thursday, 7 August: Bank of England interest rate decision (expected 25bp cut to 4.00%)
Friday, 8 August: Canadian Employment Report for July
Major Earnings Reports:
Monday, 4 August: Palantir Technologies
Wednesday, 6 August: Walt Disney & Shopify
Thursday, 7 August: Warner Bros Discovery & Toyota
Monday, 4 August 2025
US Factory Orders & Durable Goods Final Data
The week begins with US Factory Orders data for June, alongside final Durable Goods Orders figures. Following July's disappointing jobs report showing only 73,000 new positions, markets will scrutinise manufacturing data for signs of economic resilience. Factory orders provide insight into business investment sentiment and future production capacity.
Traders focusing on US indices may want to monitor these figures closely, as weak manufacturing data could signal broader economic concerns.
Tuesday, 5 August 2025
US Trade Balance & ISM Services Data
Tuesday brings the June US Trade Balance and the crucial July ISM Non-Manufacturing Composite Index. The services sector represents approximately 70% of US economic activity, making this PMI reading particularly significant for USD currency pairs.
What to Watch:
ISM Services above 50 indicates expansion
Trade balance improvement could support USD strength
Services employment component impacts Fed policy outlook
Canada's Merchandise Trade Balance will also be released, potentially affecting CAD pairs. (Source: ISMWorld)
Wednesday, 6 August 2025
Eurozone Retail Sales
Wednesday brings Eurozone Retail Sales data for June. Following the ECB's decision to maintain rates at 2.0% in July, consumer spending patterns will influence future monetary policy discussions.
Euro area inflation recently held at the ECB's 2% target, supporting officials' cautious approach to further rate cuts. Retail sales data will help gauge consumer confidence and spending power across the region. Traders should monitor the EUR currency pairs for potential volatility. (Source: ECB.Europa)
Thursday, 7 August 2025: Bank of England Rate Decision
BoE Expected to Cut Rates to 4.00%
Thursday's highlight is the Bank of England's monetary policy decision, with markets anticipating a 25-basis-point cut from 4.25% to 4.00%. This would mark the third rate reduction in 2025 as the BoE responds to stagnating economic growth and easing inflationary pressures.
Key Considerations:
UK inflation has moderated significantly from previous highs
Economic growth remains subdued
Labor market showing signs of cooling
Governor Bailey's press conference will provide forward guidance
The decision will significantly impact GBP currency pairs and UK equity indices. A dovish tone could weaken sterling further, whilst any hawkish surprises might provide temporary support. (Source: MorningStar)
Additional Thursday Data
US Productivity (Q2 Preliminary): Labor productivity figures will complement recent employment data, providing insight into economic efficiency.
Japan Trade Balance & Leading Indicators: Asian markets will focus on Japan's June trade data and leading economic indicators.
Friday, 8 August 2025
Canadian Employment Report
The week concludes with Canada's July Employment Report, which could influence CAD currency pairs and provide insights into North American labor market trends. Following the US's disappointing 73,000 job additions in July, Canadian employment data takes on added significance.
Key Metrics to Monitor:
Net change in employment
Unemployment rate
Participation rate
Full-time vs part-time job creation (Source: Statcan.gc)
This Week's Major Earnings Reports
Monday, 4 August 2025
Palantir Technologies (PLTR)
Time: After market close
Palantir's Q2 2025 earnings will be closely watched for signs of continued momentum in both government and commercial segments. The company's AI-driven data analytics platform has seen increased demand across various sectors.
Key Focus Areas:
Government contract revenue growth
Commercial sector expansion progress
Artificial intelligence platform development
Forward guidance for Q3 2025
Palantir shares could see significant volatility depending on guidance and commercial customer acquisition metrics. (Source: Nasdaq)
Wednesday, 6 August 2025
Walt Disney (DIS)
Time: After market close
Disney's Q2 2025 earnings report will focus on the media giant's streaming strategy and theme park performance amid continued industry competition.
Key Metrics to Monitor:
Disney+ subscriber growth and pricing strategy
Theme park attendance and revenue recovery
Theatrical releases performance
Direct-to-Consumer segment profitability
Disney's streaming strategy remains crucial as the company navigates increased competition from Netflix, Amazon Prime, and other platforms. Disney shares could see significant movement based on subscriber numbers and park performance. (Source: Yahoo Finance)
Shopify (SHOP)
Time: Before market open
Shopify's Q2 2025 results will reflect broader e-commerce trends and the company's platform expansion efforts.
Key Metrics to Monitor:
Gross Merchandise Volume (GMV) growth
Merchant Solutions revenue expansion
Subscription Solutions performance
International market penetration
Strong GMV growth could indicate robust digital commerce activity, while merchant acquisition metrics will show platform competitiveness. Shopify traders may want to watch for guidance on AI-powered commerce tools and international expansion. (Source: StockAnalysis)
Thursday, 7 August 2025
Warner Bros Discovery (WBD)
Time: Before market open
Warner Bros Discovery's earnings will focus on streaming performance and debt reduction progress following the major merger.
Focus Areas:
Streaming service Max subscriber metrics
Direct-to-Consumer segment performance
Content spending and production pipeline
Debt reduction progress following merger integration
The company's ongoing restructuring efforts and content strategy are expected to be closely watched by media stock traders. (Source: Zacks)
Toyota Motor Corporation (TM)
Time: Before market open (Japan time)
Toyota's Q2 2025 results will provide insight into global automotive demand and the company's electrification strategy.
Key Metrics to Monitor:
Global vehicle sales volumes
Hybrid and electric vehicle performance
Operating margin trends
Regional market performance (North America, Europe, Asia)
Toyota's results will provide insight into global automotive demand and the transition to electrification. Supply chain improvements and pricing power will be key themes. Toyota shares could react to guidance on EV strategy and market share trends. (Source: Nasdaq)
Market Impact Analysis
Currency Markets
The Bank of England's rate decision may affect GBP trading this week. A 25bp cut is largely priced in, but the accompanying statement and press conference could drive significant volatility. EUR/GBP may see particular interest given the ECB's more cautious stance.
Equity Markets
Rate Cut Impact: UK equity indices typically benefit from rate cuts through lower borrowing costs, though economic growth concerns may temper gains. US manufacturing data will influence technology stocks and industrial sector positions.
Earnings-Driven Movements: Five major companies reporting across different sectors could create significant individual stock movements and sector-wide implications:
Technology Sector: Palantir's AI focus could influence broader tech sentiment
Media & Entertainment: Disney and Warner Bros results will impact the entertainment sector
E-commerce: Shopify's performance affects retail technology sentiment
Automotive: Toyota's results will influence the automotive sector outlook
Commodities
Economic data releases could impact commodity markets, particularly if trade balance figures reveal shifts in global demand patterns. Oil markets may react to manufacturing data indicating industrial demand changes.
Conclusion
This week's economic calendar centers on the Bank of England's widely expected rate cut, supported by crucial US economic data and a packed earnings schedule. The combination of monetary policy decisions and major corporate results from Palantir, Disney, Shopify, Warner Bros Discovery, and Toyota could interest many traders and investors.
Moreover, the concentration of major earnings on Wednesday and Thursday could reflect the state of the technology, media, and automotive sectors. Currency traders will be interested in the BoE decision's potential impact on sterling, while equity traders should prepare for potential sector rotations based on earnings results.
However, it is essential to note that the above are only projections and do not constitute investment advice. Only time will reveal what lies ahead.
*Past performance does not guarantee future results..
FAQ: Economic Calendar Week of 3 August 2025
When is the Bank of England rate decision?
The BoE announces its decision on Thursday, 7 August 2025, with a press conference following the announcement.
What rate cut is expected from the Bank of England?
Markets anticipate a 25-basis-point cut from 4.25% to 4.00%, which would be the third reduction in 2025.
Which major companies report earnings this week?
Palantir (Monday), Disney and Shopify (Wednesday), Warner Bros Discovery and Toyota (Thursday).
What might Disney investors watch for in the earnings report?
Focus on Disney+ subscriber growth, theme park performance, streaming profitability, and content strategy updates.
How might Palantir's earnings affect the tech sector?
As an AI-focused company, strong results could boost confidence in artificial intelligence stocks and technology shares.
What's the expected impact of Shopify's earnings?
Results will reflect e-commerce trends; strong GMV growth could benefit retail technology and fintech sectors.
Why might Toyota's earnings report be significant?
As a global automotive leader, results provide insight into vehicle demand, EV transition progress, and regional market health.
How might the BoE decision affect GBP currency pairs?
A 25bp cut is largely priced in, but dovish guidance could weaken GBP further, whilst any hawkish surprises might provide temporary support.
