Inflation data and earnings from Pepsi, Delta, and big banks: What to watch in the markets this week
Last week brought hope as the labor market demonstrated its resiliency in June, adding 206,000 jobs in an indication steady economic growth. Although the June payrolls exceeded expectations, the unemployment rate climbed once again. The U.S. unemployment rate increased to 4.1% last month, the first time it has been above 4% since November 2021, when it was also 4.1%.
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Let’s see what the upcoming week holds for investors.
Major earnings reports are due this week
In contrast to last week, investors will see some major earnings reports this week. PepsiCo will release its earnings reports for the fiscal Quarter ending June 2024 on Thursday before the market opens. According to Zacks Investment Research, the consensus earnings per share (EPS) forecast for the quarter is $2.16. The reported EPS for the same quarter last year was $2.09.
In addition, Delta Air Lines will release its earnings report for the fiscal Quarter ending June 2024. Wall Street’s analysts expect the EPS for the quarter to be $2.37, whereas the reported EPS for the same quarter last year was $2.68, according to Zacks Investment Research.
Banking giants are also releasing earnings reports
Other than this, banking giants are releasing their earnings reports on Friday. The list includes JPMorgan Chase & Co., Wells Fargo, Citigroup, The Bank Of New York Mellon Corporation, and Unity Bancorp. Last quarter, banks’ earnings reports exceeded expectations and boosted the stock market.
Inflation data is coming, too
Investors have been anxiously anticipating a cut in the interest rate by the Fed due to recent mild inflation. On Thursday, the Consumer Price Index (CPI) data report is set to be released at 8:30 AM EST.
Federal Reserve Chair Jerome Powell had stated earlier that the central bank needs more data before cutting interest rates to ensure that recent weak inflation readings accurately reflect underlying price pressures. It will be worth watching how much inflation has gone down or up, as it will determine whether people will get at least one interest rate cut or not.
