WEEK AHEAD: Earnings Season kick-off, US CPI, BOJ meeting & China GDP

Prepare for trading markets over the next five days with the FlowBank Week ahead report:

The second quarter’s profits for S&P 500 companies are expected to be up 65% from the same quarter a year ago in the depths of the pandemic, according to Refinitiv. The growth will be led by a near 570% increase in profits for industrials, one of the hardest hit sectors during the pandemic.

CNBC’s Jim Cramer on Friday looked ahead to the start of earnings season, focusing on quarterly reports from the big banks and other companies in the packaged foods and travel industries.
“What happens next week will color the entirety of earnings season,” Cramer said. “If we get some good ones, we’ll be in party mode, but a negative series of numbers from the banks and some upsetting Covid stats could make for a tough earnings season.”

There is also some important data ahead, particularly the Consumer Price Index on Tuesday. CPI inflation rose at a higher than expected annual rate of 5% in May, and June could also be hot. The Fed has said it would allow inflation to rise above its targeted 2% level, and watch an average inflation rate.

CALENDAR

MONDAY

Earnings

N/A

Macro

US: N/A

Monetary Policy

N/A

 

TUESDAY

Earnings

PepsiCo, JP Morgan Chse, Goldman Sachs

Macro

US: CPI, Federal Budget

Monetary Policy

N/A

 

WEDNESDAY

Earnings

Wells Fargo, Bank of America, Citigroup, Delta Airlines, Blackrock

Macro

US: PPI

Monetary Policy

Reserve Bank of New Zealand meeting

Bank of Canada meeting

Fed's Beige Book

 

THURSDAY

Earnings

United Health Group, Alcoa, Morgan Stanley, US Bancorp 

Macro

Asia: Australia Employment report, China Q2 Gross Domestic Product

US: US initial jobless claims, Philadelphia Fed, Empire Manufacturing, Industrial production

Monetary Policy

N/A

 

FRIDAY

Earnings

First Horizon, Kansas City Southern

Macro

US: Retail Sales, Univ. Mich. Consumer Sentiment

Monetary Policy

Bank of Japan meeting

 

 

Sources: Investing.com, CNBC

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