Monday Market Must-Knows: August 7, 2023

Fitch downgrade: Troubling signsahead?

There are three things to pay attention this week. 

First, Apple and Amazon's recent earnings results had contrasting impacts onthe market. Amazon's strong performance led to positive market reactions, whileApple's disappointing numbers pulled down overall markets. This week, keycompanies like Disney, Alibaba, and Honda Motor Co. will report earnings,influencing market sentiment.

Second, inflation remains a top concern for the Federal Reserve. This week'srelease of Consumer Price Index (CPI) and Producer Price Index (PPI) data iscrucial. While CPI is expected to stay stable, PPI is anticipated to rise,potentially leading to significant market movements, affecting interest rates.

Lastly, Fitch Ratings Inc. downgraded the U.S. ‘Long-Term Issuer DefaultRating’ from AAA to AA+. This raises concerns about government inefficienciesand spending practices. If other credit rating agencies follow suit, therecould be further repercussions on financial markets and heightened volatility.