Coming up: PCE inflation, second-quarter GDP, and earnings from Tesla, Google, Visa
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Key Takeaways
Investors are watching for earnings reports this week from several Big Tech firms, including Tesla, Google parent Alphabet, and IBM. A number of pharmaceutical companies will also deliver financial updates, with AbbVie, AstraZeneca, and Bristol Myers Squibb set to report. The June personal consumption expenditures index on Friday will be the last report on inflation before the Federal Reserve next meets.Investors also will get their first look at second-quarter gross domestic product on Thursday.President Biden on Sunday said he would not seek reelection.
Investors will focus on earnings from several top firms this week, with Tesla’s (TSLA) report on Tuesday likely to get the most attention.
Alphabet (GOOG), Visa (V), Verizon Communications (VZ), IBM (IBM), and AT&T (T) also are scheduled to provide financial updates this week. Several pharmaceutical firms will report as well, including AbbVie (ABBV), AstraZeneca (AZN), and Bristol Myers Squibb (BMY).
The June report on the personal consumption expenditures (PCE) index will show whether inflation continues to move lower, providing Federal Reserve officials with their last update on prices before meeting in late July. Investors also will get the first estimate of second-quarter gross domestic product (GDP).
Federal Reserve officials are in a blackout period before their next meeting, so they aren’t allowed to make public comments this week. But affairs in Washington will also be front and center, with President Biden on Sunday saying he would not seek reelection and endorsing Vice President Kamala Harris.
Monday, July 22
SAP (SAP), Verizon Communications, Ryanair Holdings (RYAAY), and Truist Financial (TFC) report earnings.
Tuesday, July 23
Existing home sales (June)Alphabet, Tesla, Visa, Coca-Cola (KO), GE Aerospace (GE), Comcast (CMCSA), and United Parcel Service (UPS) report earnings
Wednesday, July 24
S&P Global flash composite U.S. PMI (July)New home sales (June)Advance international trade (June)Advance retail inventories (June)Advance wholesale inventories (June) Thermo Fisher Scientific (TMO), IBM, ServiceNow (NOW) and AT&T report earnings
Thursday, July 25
Gross domestic product (GDP) (Q2)Durable goods (June)AbbVie, AstraZeneca, Union Pacific Corp (UNP), Unilever (UL) and Honeywell International (HON) report earnings
Friday, July 26
Personal consumption expenditures (PCE) index (June)Consumer sentiment (July)Bristol Myers Squibb, Colgate-Palmolive (CL) and 3M (MMM) report earnings
Investors Watching Earnings from Tesla, Google, Visa
Corporate earnings are scheduled from major tech, telecom, and pharmaceutical companies, with several highly anticipated second-quarter financial reports due this week.
Investors will be focused on Tuesday’s report from Tesla, which is coming on the heels of a better-than-expected quarterly delivery report that has sent its shares soaring. Tesla is expected to produce second-quarter revenue near what it posted for the same period last year.
Also on Tuesday, Google parent Alphabet looks to better its performance from the previous quarter, when it reported a 15% revenue jump, while also unveiling its first dividend for shareholders. On Wednesday, investors will hear from IBM and ServiceNow.
Top telecom carriers are reporting this week, with Verizon Communications’ financial update on Monday. AT&T’s earnings update on Wednesday comes as the company contends with a data breach. Cable and internet provider Comcast reports on Tuesday.
Earnings from pharmaceutical maker AbbVie come after the company warned that sales of its popular arthritis drug Humira faces increasing competition. Other pharmaceutical makers scheduled to report this week include AstraZeneca and Bristol Myers Squibb, and laboratory equipment maker Thermo Fisher Scientific will also deliver its quarterly financial update.
Credit card provider Visa’s report on Tuesday will provide some insight into how consumers are handling current credit conditions.
Investors will also get earnings reports on several popular consumer brands, including the Tuesday earnings from Coca-Cola that could show whether shoppers are still willing to pay higher prices. Other firms with consumer brands reporting this week include Colgate-Palmolive, 3M, and Unilever.
Inflation, GDP Data Come Ahead of Fed Meeting
As anticipation for interest-rate reductions mounts, market watchers will get key inflation data on Friday, when the personal consumption expenditures (PCE) index will show whether price growth continued to slow in June.
The data comes as Federal Reserve officials have spoken of gaining more confidence that the annual rate of price increases is approaching their target goal of 2%. Having set interest rates at decades-high levels to help combat the spikes in inflation in 2022 and 2023, Fed officials are looking for more good news on price levels before starting to ease those rates.
Friday’s PCE report offers the last major piece of economic data before the Federal Open Market Committee (FOMC) meets at the end of July. While most investors and economists believe that the Fed will wait until its September meeting, some are arguing that the central bank should move in July on a rate cut. Friday’s inflation report could strengthen that case for officials. Meanwhile, there won’t be any guidance from Federal Reserve officials this week because they are in a blackout period that prohibits public comment ahead of the following week’s FOMC meeting.
Investors will also get their first look at second-quarter GDP figures on Thursday after a strong June retail sales report has led some economists to think the data could come in stronger than anticipated.
Other economic data on tap this week includes June updates for both new and existing home sales, along with consumer sentiment, retail and wholesale inventories, and an update on the U.S. trade deficit via the June advance international trade report.
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