Consumers will be in focus next week as investors head into the height of earnings season and await some important macroeconomic reports. Only 14% of S&P 500 companies have reported earnings so far. But investors will receive a slew of reports in the coming week, when they will see results of about 20% for the index, and more of 30% next week. As one strategist noted, Wall Street is about to get insights into the state of the economy from more than half of the broad market indexes. The results can provide key information to investors. Now that inflation does appear to be coming down from its highs, many are turning their attention to consumers to see how soon the Fed will cut interest rates to avoid a potential collapse of the economy. Given some recent signs of slowing growth, corporate results and commentary can give investors a clearer picture of what’s happening with consumers. For investors, this could determine what happens next in the market. The S&P 500 fell this week as investors turned away from large technology leaders and toward this year’s market laggards, such as smaller companies. On Friday, Nvidia reported a drop of more than 8% for the week, while the small-cap Russell 2000 index outperformed the three major indexes, rising 1.7%. .RUT 5D mountain Russell 2000 Investors are considering whether the moves are signs of a rotation that could lift the market broadly, or a sign of a coming correction as the tech sector collapses. Some expect stocks to be volatile in the near term but could move higher by the end of the year. “We’re probably going to have a pause in trading and we’re probably going to move sideways,” said Terry Sandven, chief equity strategist at U.S. Bancorp Asset Management Group. “It’s not that a bear market is here. It’s just that we’re not going to be in a bear market until we get closer to October.” , we may get some support and fill before we see the new year.” On Friday, the S&P 500 had its worst week since April, falling nearly 2%. The Nasdaq fell more than 3%. The Dow Jones Industrial Average was the only index to end the week in positive territory, rising 0.7%. Earnings season is off to a strong start. Of the S&P 500 companies that have reported results, 14% have reported results, with about 82% reporting surprises. Bank results, which investors continue to closely watch in the aftermath of last year’s regional institutional crisis, have largely ended, while the companies themselves have been largely unscathed. But more consumer-related companies are set to release reports in the coming week, including some big names that could provide insight into the real estate industry. Results were released for commercial real estate company CBRE, paint and coatings maker Sherwin-Williams and appliance maker Whirlpool. The names provide clarity on a key component of inflation that is a major component of the Consumer Price Index and Personal Consumption Expenditure reports. While the housing market has begun to show some signs of cooling recently, investors are looking for further confirmation that the housing market is coming off its highs. “It’s an important component of household wealth and consumer conditions,” said Charles Ashley, portfolio manager at Catalyst Funds. “Having a strong housing market is important to the overall economy, and I think we should also know what the Fed’s next steps are going to be. .” Credit card company Visa will report earnings next week, after American Express’s results this week showed that inflationary pressures have spread to high-end consumers. Some preliminary reports on The Magnificent Seven will also be released next week. On Tuesday, Google parent Alphabet and Tesla will provide investors with some early insights into artificial intelligence deals ahead of a slew of reports later this month. Read Through Inflation and the Economy Wall Street will also release a full set of macroeconomic reports next week, and some of the key data on economic growth and inflation can help investors think about how the Fed can promote a soft landing for the economy while making both better. balance. . “I think the Fed needs to be mindful that the economy may be deteriorating faster than everyone currently anticipates,” Ashley said. “We’ve seen some softening in the consumer and housing markets. So if the Fed moves too slowly, “This situation may accelerate faster than I think the market expects.” The Commerce Department’s preliminary estimate of second-quarter gross domestic product will be released on Thursday. Annual growth is expected to be 1.9%, up from 1.4% in the first quarter, according to economists polled by FactSet. The Fed’s preferred inflation gauge, the June personal consumption expenditures price index, will be released on Friday. Core data is expected to increase by 0.1% monthly, basically the same as last month’s data, and by 2.5% annually, down 0.1 percentage points from May. Readings for all items are expected to increase by 0.1% monthly and 2.4% annually. The Fed’s inflation target is 2%. Elsewhere, June existing home sales data will also be released early this week. One week ahead calendar all times are Eastern Time. Monday, July 22 8:30 AM Chicago Fed National Activity Index (June) Earnings: Verizon Tuesday, July 23 10 AM Existing Home Sales (June) 10 AM Richmond Fed Index (July) Gains: 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 AM PMI General Preliminary Data (July) 9:45 AM Markit PMI Manufacturing Preliminary Data (July) 9:45 AM 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 AM Continuing Jobless Claims (07/13) 8:30 AM Preliminary Durable Orders Data (June) 8:30 AM Preliminary GDP Data (Q2) 8:30 AM First Claims (07/20) 8:30 a.m. Preliminary wholesale inventory data (June) 11 a.m. Kansas City Fed Manufacturing Index (July) Gains: 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
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