3 things ASX investors should watch this week

Let's take a look at the most important events for the stock market coming in the next few days.

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Once again there is much to keep an eye on for the sake of your ASX shares.

These are the three most critical ones to monitor, according to eToro market analyst Josh Gilbert:

1. Australia's unemployment rate

The latest jobs numbers will be released on Thursday, which Gilbert calls a "key piece of the Reserve Bank of Australia's puzzle".

"Although the RBA wants to see unemployment rise, they don't want to see it spike," he said.

"Philip Lowe has mentioned several times that the board would rather not be too aggressive and preserve gains in the labour market."

In the face of 12 interest rate rises in just over a year, the labour market has held remarkably resilient thus far. 

In fact, Gilbert pointed out how the unemployment rate actually dropped last month.

"This week the RBA will be hoping for a softer employment number to vindicate their decision to keep rates on hold," he said.

"A slowing of the labour market would be welcomed by investors, with that data likely to reaffirm that the RBA may be done with raising rates after August."

2. Updates from mining giants

As something like a preview of the August reporting season, mining companies BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) will provide operational updates on Thursday and Tuesday respectively.

"Both have struggled in the last three months, with shares down around 5% in both instances in part due to China's ailing property market," said Gilbert.

"Iron ore prices, however, have picked up in the last week with more hope that China may begin to deliver the economic aid it badly needs."

The real meaty data will come next month, but investors will still want to take note of the output numbers from these resources giants this week.

"[There's] potential commentary from management teams about China's tepid recovery and how they see the current landscape."

3. Tesla and Netflix quarterly earnings

Two US stocks that are wildly popular with Australian investors will both be revealing their latest performance figures on Thursday morning Australian time.

Tesla Inc (NASDAQ: TSLA)'s record vehicle deliveries in the quarter ending June have set high expectations for the coming financial update.

"With shares climbing by 120% this year, there's little margin for error, and it will be margins that the street will focus on," said Gilbert.

"Tesla's impressive automotive margins have been falling as of late, and more so in 2023, with significant price cuts across its range."

A margin below 20% might deflate the stock.

"Investors should be prepared for it, given that Musk has said the business will focus on growth over profit."

A "solid" performance in the March quarter was seen as a turnaround for Netflix Inc (NASDAQ: NFLX), with the share price up more than 52% year to date.

This week's numbers could build on that substantially.

"Netflix is expected to add 1.9 million new subscribers, a far cry from the 1 million loss of subscribers in the same period last year," said Gilbert.

"The pick-up is thanks to the rollout of its ad-based tier and its password policies beginning to pay dividends. Revenue growth will be in focus after stalling in the last few years, but a strong print would set up the framework for a solid second half of the year."

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix and Tesla. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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