TLDR
- Big banks including JPMorgan Chase, Wells Fargo, Bank of America, Morgan Stanley, and Goldman Sachs will report second-quarter earnings this week
- June Consumer Price Index inflation data will be released Tuesday, expected to show core inflation rising 2.9% annually
- Netflix and Taiwan Semiconductor Manufacturing Company will report earnings Thursday
- Federal Reserve officials will speak throughout the week while markets await potential rate cuts
- U.S. retail sales data for June will be released Thursday following May’s decline after tariff-related buying activity
The second quarter earnings season begins this week with major U.S. banks leading the charge. JPMorgan Chase, Wells Fargo, Citigroup, Bank of America, Morgan Stanley, and Goldman Sachs will all report quarterly results.
The banking sector enters earnings season after passing Federal Reserve stress tests designed to measure institutional health. JPMorgan previously beat first-quarter estimates by bringing in more net interest income than expected.
Wells Fargo will report after experiencing a net interest income decline in the prior quarter. Morgan Stanley earned record stock-trading revenue in the previous quarter as market volatility increased.
Several banks reported better-than-expected earnings in recent quarters while warning of continued uncertainty. Investors will focus on commentary about lending conditions and economic outlook.
Inflation Data Takes Center Stage
The June Consumer Price Index will be released Tuesday morning. Core consumer prices, excluding food and gas, are expected to rise 2.9% annually compared to 2.8% previously.
Both core and headline inflation are forecast to increase 0.3% month-over-month. The data comes as the Federal Reserve considers its next interest rate move at the end-of-month meeting.
Wall Street economists expect inflation to move further from the Fed’s 2% target. Current trader expectations show just a 4.7% chance of rate cuts this month, down from 20% a month ago.
Federal Reserve Governor Michelle Bowman and New York Fed President John Williams will speak this week. Officials have cited inflation concerns as driving decisions to maintain current interest rates.
Tariff policy continues to complicate the rate picture. Bank of America economists note that recently announced tariffs would raise effective rates to nearly 14% based on import composition.
Tech and Pharmaceutical Earnings
Netflix will report Thursday after growing sales 12% in the first quarter. The streaming giant kicks off earnings from major tech companies.
Taiwan Semiconductor Manufacturing Company reports the same day. The chipmaker’s recent revenue data showed sales jumped 40% in the first half of the year on artificial intelligence demand.
Johnson & Johnson and Novartis will provide updates from the pharmaceutical sector. PepsiCo and GE Aerospace are also scheduled to report this week.
ASML, the Dutch semiconductor equipment maker, will offer insights into AI-related chip demand. The company’s results often provide guidance on broader tech sector trends.
Analysts expect Communication Services and Technology sectors to grow earnings 29.5% and 16.6% respectively in the second quarter. These sectors house major AI-focused companies.
Retail sales data for June will be released Thursday. Consumer spending accounts for about two-thirds of economic activity in the U.S.
May retail sales declined as consumers who bought products ahead of tariff implementations pulled back on spending. The June data will show whether this trend continued.
Housing market data includes Thursday’s homebuilder confidence survey and Friday’s housing starts data for June. The housing market has faced challenges from low inventory levels.
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