Earnings Deluge and Economic Reports to Put Consumer Spending in Spotlight

Catalyst watch: Earnings deluge, Farnborough Airshow, Olympics, and Trump talks crypto

Monday - July 22 Volatility watch - Options trading volume is elevated again on GameStop (GME) and Sirius XM Holdings (SIRI). The most overbought stocks per their 14-day relative strength index include The Bancorp (TBBK), CrossFirst Bankshares (CFB), and Emergent Bio (EBS). The most oversold stocks per their 14-day Relative Strength Index include Helen of Troy (HELE), Five Below (FIVE), and Oaktree Specialty (OCSL). Short interest has moved even higher on Beyond Meat (BYND) and Kohl's (KSS). All week - The Farnborough International Airshow will capture the attention of the aviation industry. The most highly anticipated appearances are from Boeing (BA), Embraer (ERJ), Airbus (OTCPK:EADSF), and Textron (TXT). The eVTOL industry will also be in the spotlight, with Vertical Aerospace (EVTL), Joby Aviation (JOBY), Supernal, and Lilium (LILM) being showcased. Earnings watch - Notable companies due to report include Verizon (VZ) and NXP Semiconductors (NXPI). Tuesday - July 23 Earnings watch - Notable companies due to report include Alphabet (GOOG), Tesla (TSLA), Visa (V), Coca-Cola (KO), Texas Instruments (TXN), Philip Morris International (PM), UPS (UPS), Lockheed Martin (LMT), General Motors (GM), and Comcast (CMCSA). 10:00 a.m. The June Existing Home Sales report will be released. 1:00 p.m. The National Retail Federation will hold a webcast to discuss the latest data on consumer shopping and spending plans for the upcoming back-to-school season. Wednesday - July 24 Earnings watch - Notable companies due to report include IBM (IBM), AT&T (T), Chipotle (CMG), General Dynamics (GD) and Ford Motor (F). All day - Nasdaq will release its latest update on short interest positions. 10:00 a.m. The June New Home Sales report will be released. Thursday - July 25 Earnings watch - Notable companies due to report include AbbVie (ABBV), Northrop Grumman (NOC), Union Pacific (UNP), and AstraZeneca (AZN). Options trading implies a double-digit share price swing for Lendingtree (TREE) and Deckers Outdoor (DECK) after their reports. All day - The three-day Bitcoin 2024 Conference will include appearances by Donald Trump, Robert Kennedy Jr., ARK Invest's Cathie Wood, MicroStrategy (MSTR) Executive Chairman Michael Saylor, Edward Snowden, Vivek Ramaswamy and Anthony Scaramucci. Some of the companies that are participating include Riot Platforms (RIOT), Gryphon Digital Mining (GRYP), and TeraWulf (WULF). Donald Trump is not scheduled to speak until July 27, but his upcoming appearance could create buzz all week for Bitcoin (BTC-USD). All day - Notable investor events include NV5 Global's (NVEE) Investor Day. 8:30 a.m. The June Durable Goods Order report will be released. Friday - July 26 Earnings watch - Notable companies due to report include Bristol-Myers Squibb (BMY), and Colgate-Palmolive (CL), and Charter Communications (CHTR). All day - Matterport (MTTR) will hold a special shareholder meeting to vote on the pending merger with CoStar. All day - The opening ceremonies of the Paris Olympics will take place. The Olympics could have some implications for the consumer sector after NBCUniversal (CMCSA) said that International Olympic Committee sponsors spent 18% more than for the 2021 Summer Olympics in Tokyo. Nike (NKE), Procter & Gamble (PG), Coca-Cola (KO), Danone (OTCQX:DANOY), Airbnb (ABNB), Snap (SNAP), and fuboTV (FUBO) are some of the stocks that analysts have circled as having the potential to see an Olympics boost from various catalysts. 8:30 a.m. The core PCE price index report for June will be released. The Fed's favored inflation gauge was up 2.6% in May. Seeking Alpha Editor Josh Fineman contributed to this story. More on the markets S&P 500: AI Funding Is Needed Amid Inflation And Federal Debt Fed Needs To Cut Rates Immediately Game-Changing CPI Report May Drive Big Rotation Towards Value And SmallCap Not the time to buy the dip - Goldman's Rubner Goodbye AI, hello regionals: The stock theme rotation in one chart

Earnings plus key reports on economic growth and inflation put the consumer in focus next week

The consumer will be in focus next week as investors head into the thick of earnings season and await some major macroeconomic reports. So far, just 14% of S & P 500 companies have reported earnings results. But investors are about to get a flood of reports in the week ahead, when they see results from roughly 20% of the index, with 30% more to come the following week. As one strategist noted, Wall Street is about to get insight into the economy from more than half the broad market index. The results could give investors a key piece of information. Now that it appears inflation is indeed easing from its highs, many have turned their attention to the consumer to understand just how soon the Federal Reserve lower rates to avoid a potential break in the economy. With some recent signs of slowing growth, corporate results and commentary could give investors clearer insight into how the consumer is holding up. For investors, that could determine what happens next for markets. This week, the S & P 500 dropped as investors pivoted away from the mega-cap tech leaders into this year's market laggards such as small-caps. On Friday, Nvidia was set for a more than 6% loss on the week, while the small-cap Russell 2000 was on track to outperform the three major indexes, up by more than 2%. .RUT 5D mountain Russell 2000 Investors are deliberating whether those moves are a sign of a rotation trade that could broadly lift the market, or a sign of a correction around the corner as the tech sector buckles. Some expect that stocks are due for near-term volatility, but can pull through higher toward the end of the year. "We're probably due for a pause from equities and probably go sideways," said Terry Sandven, chief equity strategist at U.S. Bank Asset Management Group. "That's not to say that a bear market is here. It's just to say that we're probably due for a little backing and filling until we get closer to October, and then visibility for the new year." On Friday, the S & P 500 and Nasdaq Composite were each headed for losing weeks, down more than 1% and 2% respectively. The Dow Jones Industrial Average was on track to close out the week with gains, up by more than 1.5%. The thick of earnings Earnings season is off to a strong start. Of the 14% of S & P 500 companies that have reported results, roughly 82% have posted positive surprises. Bank results -- which investors have continued to scrutinize after last year's crisis in regional institutions -- are mostly over with, with the firms themselves largely coming out unscathed. But more companies tied to the consumer are reporting in the week ahead, including some notable names that could give insight into the housing sector. Results from commercial real estate firm CBRE are on deck, as is paint and coating maker Sherwin-Williams and appliance manufacturer Whirlpool. Those names could give clarity into a critical component of inflation that makes up a major part of the consumer price index and the personal consumption expenditure report. While housing has recently started showing some signs of cooling, investors would want further confirmation that it's pulling back from its highs. "It's a major component of household worth and the state of the consumer," said Charles Ashley, portfolio manager at Catalyst Funds. "Having a robust real estate market is important for the economy in general, and I think also for us to read the tea leaves on what the Fed's gonna do next." Credit card company Visa will be reporting next week after American Express' results this week suggested inflationary pressures have reached the higher-end consumer. Also on deck next week are some initial reports from the Magnificent Seven. On Tuesday, Google-parent Alphabet and Tesla will give investors some early read-throughs on the artificial intelligence trade ahead of the bulk of reports coming later this month. Read throughs on inflation, economy Wall Street is also in for a full slate of macroeconomic reports next week, with some key data on economic growth and inflation that could help investors deliberate how the Fed could bring both into better balance while navigating a soft landing for the economy. "I think the Fed needs to be mindful of the potential for the economy to deteriorate faster than everybody's expecting right now," Ashley said. "We've already seen some softness in a little bit of the consumer, a little bit in housing. And so, if the Fed is too slow to act, that could accelerate quicker than I think the market anticipates." A Commerce Department preliminary reading on second-quarter gross domestic product is due out Thursday. It's expected to show a 1.9% annualized gain, up from 1.4% in the first quarter, according to economists polled by FactSet. The June personal consumption expenditures price index, which is the Fed's preferred inflation gauge, is set for release Friday. It's expected to show a monthly gain of 0.1% on the core reading, about in line with the prior month's reading, and 2.5% from a year ago, down 0.1 percentage point from May. The all-items reading is projected to rise 0.1% monthly and 2.4% annually. The Fed targets 2% inflation. Elsewhere, June existing home sales data is also due out early in the week. Week ahead calendar All times ET. Monday July 22 8:30 a.m. Chicago Fed National Activity Index (June) Earnings: Verizon Tuesday July 23 10 a.m. Existing Home Sales (June) 10 a.m. Richmond Fed Index (July) Earnings: Visa , Enphase Energy , Capital One Financial , Texas Instruments, Tesla , Alphabet , Freeport-McMoRan , Lockheed Martin , Sherwin-Williams , Comcast , Coca-Cola , Kimberly-Clark , General Motors , United Parcel Service , Philip Morris International , GE Aerospace Wednesday July 24 9:45 a.m. PMI Composite preliminary (July) 9:45 a.m. Markit PMI Manufacturing preliminary (July) 9:45 a.m. Markit PMI Services preliminary (July) Earnings: O'Reilly Automotive , Chipotle Mexican Grill , International Business Machines , Las Vegas Sands , Ford Motor , Align Technology , Lamb Weston , NextEra Energy , AT & T , GE Vernova Thursday July 25 8:30 a.m. Continuing Jobless Claims (07/13) 8:30 a.m. Durable Orders preliminary (June) 8:30 a.m. GDP first preliminary (Q2) 8:30 a.m. Initial Claims (07/20) 8:30 a.m. Wholesale Inventories preliminary (June) 11 a.m. Kansas City Fed Manufacturing Index (July) Earnings: American Airlines , CBRE , Valero Energy , Hasbro , Tractor Supply , RTX , Northrop Grumman , Southwest Airlines , Honeywell International , AbbVie , PG & E , Norfolk Southern Friday July 26 8:30 a.m. Personal Consumption Expenditures price index (June) 8:30 a.m. Personal Income (June) 10 a.m. Michigan Sentiment final (July) Earnings: T. Rowe Price Group , Bristol-Myers Squibb , Colgate-Palmolive , 3M