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Second-quarter earnings season begins this week with several large US banks set to report. The latest inflation data will be closely watched by investors and economists alike.
Citigroup
,
JPMorgan Chase
,
and
Wells Fargo
will be this week’s earnings highlights, all on Friday morning.
Love s
,
Conagra Brands
,
Delta Airlines
,
Fastenal
,
and
PepsiCo
are also scheduled to report on Thursday, followed by
BlackRock
,
State Street, and
UnitedHealth Group
on Friday.
The economic-data highlight of the week will be the Bureau of Labor Statistics’ consumer price index for June on Wednesday. Economists’ consensus estimate calls for a 3% increase in the headline CPI from a year earlier, which would be a point less than in May. The core CPI is seen rising 5% year over year, 0.3 percentage point less than a month earlier. Both would be the slowest rates of inflation since 2021. The BLS also releases the producer price index for June on Thursday.
Other data out this week will include a pair of sentiment indicators. On Tuesday, the National Federation of Independent Business will release its Small Business Optimism Index for June. On Friday, the University of Michigan releases its Consumer Sentiment index for July.
Monday 7/10
The Federal Reserve reports consumer credit data for May. Total consumer credit rose at a seasonally adjusted annual rate of 5.7% in April to a record $4.86 trillion. Revolving credit, chiefly credit-card debt, jumped 13.1%, while nonrevolving credit, such as home mortgages and auto loans, increased 3.2%.
Tuesday 7/11
President Joe Biden attends the 74th NATO Summit in Vilnius, Lithuania, which runs for two days.
TheNationalFederation of Independent Business releases its Small Business Optimism Index for June. The consensus estimate is for a reading of 89.9, slightly higher than the May figure. The index remains anchored near a decade low, as supply-chain disruptions and labor shortages—even as they have eased some in the past year—continue to hurt small businesses.
Wednesday 7/12
The Bureau of Labor Statistics releases the consumer price index for June. Economists forecast that the CPI will increase 3.1% year over year, nearly a full percentage point less than in May. The core CPI, which excludes volatile food and energy prices, is seen rising 5%, three-tenths of a percentage point less than previously. The CPI is at its lowest level since March 2021, and the core CPI since November 2021.
The Bank of Canada announces its monetary-policy decision. Traders are pricing in a two-in-three chance that the central bank will raise its key short-term interest rate by a quarter of a percentage point, to 5%. The BOC began this hiking cycle the same month as the Federal Open Market Committee, March 2022, and raised interest rates nine times, bringing them from 0.25% to 4.75%.
Thursday 7/13
Love s,
Conagra Brands
,
Delta Air Lines, Fastenal, and PepsiCo release quarterly results.
The BLS releases the producer price index for June. The PPI is expected to increase a scant 0.4% year over year, while the core PPI is seen increasing 2.5%. This compares with gains of 1.1% and 2.8%, respectively, in May. The PPI is at its lowest level since late 2020, and the core PPI since early 2021.
The Department of Labor reports initial jobless claims for the week ending July 8. Claims averaged 255,000 in June, the most since late 2021, a sign that the hot labor market might be cooling.
Friday 7/14
Second-quarter earnings season kicks off with three of the largest banks—Citigroup, JPMorgan Chase, and Wells Fargo—reporting. S&P 500 earnings are expected to decline 6.8% year over year. That would mark the largest drop since second-quarter 2020’s 31.6% plummet.
BlackRock, State Street, and UnitedHealth Group announce earnings.
The University of Michigan releases its Consumer Sentiment index for July. The consensus call is for a 65.8 reading, slightly higher than June’s. Consumers’ expectations of inflation for the year ahead was 3.3% in June, the lowest in more than two years.
write to Nicholas Jasinski at [email protected]