Key takeaways:

• CSL and Telstra will headline the ASX stocks reporting this week

The ASX is eyeing a soft start to the week after the US stock market slipped on Friday evening in response to producer pricing data that left the door open to another Fed rate hike.

Economic Calendar and News

Traders will be glued to their screens as they assess the minutes from the most recent policy meeting held by the Reserve Bank of Australia. 

At the start of August the central bank maintained the official cash rate at 4.1% for the second straight month. The commentary may shed further light on the RBA’s softer tone around the need for any additional tightening in response to inflation.

But the importance of those comments could soon subside when analysts take a close look at fresh labour market data.

On Tuesday, look out for wages data from the second quarter of the year. According to consensus forecasts, the wage price index is tipped to show an increase of approximately 0.9%, which follows an increase of 0.8% in the first quarter of the year.

Importantly, the data will not take into account a significant increase in minimum and award wages following the government-backed decision by Fair Work Australia to hike wages. This means wages growth could pick up dramatically in the following quarters.

Thursday will see the release of the latest jobs report for July. While projections suggest about 15,000 jobs were likely added to the economy last month, a slowdown from 32,000 created a month prior, the unemployment rate is still tipped to rise modestly from 3.5% to 3.6%.

In the US, retail sales data will take on newfound importance as investors digest the strength of the American consumer. Retail sales likely rose 0.4% last month, which would represent the fourth consecutive month of gains. On an annual basis, retail sales likely grew by 1%, which would be the slowest annual growth rate since the start of the pandemic.

Another focal point for economists will be the minutes from the last meeting held by the Federal Reserve, where policymakers lifted the benchmark cash rate for an 11th, and potentially final occasion as part of the current tightening cycle.

Stocks on watch

Earnings season for the Australian sharemarket rolls on, with a long list of companies set to report over the coming days.

Kicking things off on Monday are the likes of Aurizon (ASX: AZJ), Beach Energy (ASX: BPT), Bendigo & Adelaide Bank (ASX: BEN), Ansell (ASX: ANN), and GPT Group (ASX: GPT). Shareholders will examine a number of key points in each of these results, ranging from margins for Bendigo Bank, to property valuations for GPT Group, supply chain and stocking issues for Ansell, production levels for Beach, and bulk haulage volumes for Aurizon as it seeks to pivot away from coal exposure.

A day later, some heavyweights will line up, including CSL (ASX: CSL), Treasury Wine Estates (ASX: TWE), Cochlear (ASX: COH), and Seek (ASX: SEK). By far the biggest name for the week, CSL’s earnings will be analysed closely after the biotech giant recently downgraded its earnings outlook in the face of currency headwinds.

Not to be outdone, toll road business Transurban (ASX: TCL), as well as pokies, alcohol, and hotel operator Endeavour Group (ASX: EDV) will report their results on Wednesday. Endeavour Group was recently rocked by news that Victoria plans to make wholesale changes to pokie operations across the state, but the company’s management indicated many of these changes were already part of its plans in other states. 

There are a host of well-known companies delivering earnings on Thursday, with the likes of Telstra (ASX: TLS), Goodman Group (ASX: GMG), ASX (ASX: ASX), Evolution Mining (ASX: EVN), Amcor (ASX: AMC), Origin Energy (ASX: ORG), Sonic Healthcare (ASX: SHL), and Super Retail Group (ASX: SUL) just a few of those that will be in the spotlight.

Thursday’s results will cover a breadth of industries, but it is expected that Telstra’s earnings will garner the most attention on account of the telco’s share price recovery over the best part of the last three years. Investors will look for clues on whether the company might have the scope to boost its dividend in the coming year.

Last but not least, fund manager Magellan Financial (ASX: MFG) and lithium producer Allkem (ASX: AKE) are both scheduled to report on Friday.

Overseas, the US inches towards the end of its own earnings season, with reports due from major retailers including Walmart (NYSE: WMT), Home Depot (NYSE: HD), and Target (NYSE: TGT). Results from the big-box retailers will be used as a proxy for overall consumer spending. Should results come in ahead of expectations, market participants may grow more confident about the state of the US economy.