This past week, we saw some stellar performance in the indices, with the Dow up 1.73%, the S&P up 2.27%, the Russell up 2.68%, and the Nasdaq up a whopping 3.68%, with markets showing few signs of slowing down anytime soon. This stellar performance came on the back of much better-than-anticipated economic data. However, this week we may see some volatility as Q2 earnings season kicks off in a major way!
This past week, we saw a couple of tremendous beats in terms of economic data releases. CPI came in much lower than expected, with month-over-month CPI and core PCI coming in at 0.2% versus an expected 0.3%. Year-over-year CPI came in at 3.0% versus an expected 3.1%, and year-over-year core CPI came in at 4.8% compared to a 5% consensus. Additionally, we also saw consumer credit beat in a huge way, coming in at $7.2 Billion for the month of May, compared to an expected $21.5 Billion and a previous reading of $20.3 Billion.
This week, things will slow down a bit in terms of economic data releases. While there likely won’t be any market-moving reports, there are a few key ones that you should pay attention to, such as retail sales on Tuesday, housing starts on Wednesday, and existing home sales on Thursday. These reports will help paint a broader picture of how the consumer is faring as well as how the housing market is faring.
This week, Q2 earnings season really kicks off, with some of the largest companies in the world reporting their earnings, such as:
07/18 – Bank of America Corporation (BAC), Morgan Stanley (MS), Lockheed Martin Corp. (LMT), The Charles Schwab Corp. (SCHW), PNC Financial Services (PNC), The Bank of New York Mellon (BK), J.B. Hunt Transport Services (JBHT), Synchrony Financial (SYF), Hasbro, Inc. (HAS)
07/19 – Tesla (TSLA), ASML Holding (ASML), Netflix (NFLX), Goldman Sachs Group (GS), US Bancorp (USB), Las Vegas Sands (LVS), Kinder Morgan (KMI), Baker Hughes Company (BKR), Halliburton Company (HAL), Discover Financial Services (DFS)
07/20 – Taiwan Semiconductor Manufacturing (TSM), Johnson & Johnson (JNJ), SAP SE (SAP), Philip Morris (PM), Blackstone Inc (BX), CSX Corporation (CSX), Kenvue (KVUE), Capital One Financial (COF), D.R. Horton (DHI)
07/21 – American Express Company (AXP), HDFC Bank Limited (HDB), Schlumberger N.V. (SLB)
As always, the first week of earnings season is led by the financials. This week, we’ll hear from giants, like BAC, MS, SCHW, GS, BX, and AXP. We’ll also get to hear from smaller financials like PNC, BK, SYF, USB, DFS, and COF. Their earnings will give us a good idea of how the banking sector is performing as well as how the average consumer is faring.
We’ll also get to hear from key semiconductor companies, like ASML and TSM, two of the most important companies in the semi space. They will give us a great idea of how the chip market is faring as well as their expansion plans.
Lastly, we’ll hear from some key tech companies, like TSLA, NFLX, and SAP. The tech sector has had a massive run-up throughout the first half of this year, so it’ll be interesting to hear if their business performance has matched their stock price performance!
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