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Markets Await Earnings and Economic Data

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Last Friday, markets put up an heroic effort to reverse big losses from the previous trading day and finish in the green for the full week. The S&P 500 even posted yet another record closing high by the final bell Friday. This is ahead of the unofficial start to Q2 earnings season, which begins this week with a higher level of major corporations announcing earnings results.

These include, from a market cap perspective, some of the biggest companies on Wall Street: the Big Banks. On Tuesday morning, we expect results from JPMorgan (JPM - Free Report) and Goldman Sachs (GS - Free Report) . Wednesday brings us Bank of America (BAC - Free Report) , Citigroup (C - Free Report) and Wells Fargo (WFC - Free Report) , while Morgan Stanley (MS - Free Report) reports Thursday. Just examining results of these companies alone will give us a good sense of how Q2 earnings should unfold.

In addition, PepsiCo (PEP - Free Report) and ConAgra (CAG - Free Report) report quarterly results Tuesday, Delta Air Lines (DAL - Free Report) on Wednesday and UnitedHealth (UNH - Free Report) Thursday. All in all, Q2 earnings growth rates are expected to climb 65% year over year — off an historically low base effect from Q2 a year ago, at the abyss of the pandemic economy, but also providing true earnings growth as the economy builds back to normal.

Elsewhere, beginning tomorrow, we will also see a bevy of economic reports to help articulate the improvements made over the past three months, including CPI and PPI for June, Empire State and Philly Fed surveys for July, and, of course, weekly jobless claims. We’ll also see new Retail Sales, Import/Export numbers and Industrial Production/Capacity Utilization figures, all for June.

Currently, we’re looking at mixed markets ahead of the first trading day of the new week, with positive sentiment tacking back toward (tech) growth names on the Nasdaq, +55 points, and away from the more value-based blue chips on the Dow, -130 points. The S&P 500 looks to split the difference at this hour, roughly flat 45 minutes before the market opens. We’re light on earnings and economic data today, but there’s always a chance for a change in market sentiment.