Written by Brenda Nakalema

JP Morgan, Delta, Morgan Stanley, TSMC Plus Other Stocks to Watch This Week

The time for second-quarter earnings season is here, and over a dozen S&P 500 firms will release their earnings this …

The time for second-quarter earnings season is here, and over a dozen S&P 500 firms will release their earnings this week, including several major banks. JP Morgan Chase (ticker: JPM) and Morgan Stanley (ticker: MS) will be the first to report on Thursday, closely followed by Citigroup and Wells Fargo on Friday.

Other companies reporting this week include PepsiCo on Tuesday, Delta Airline (ticker: DAL) on Wednesday, Taiwan Semiconductor Manufacturing on Thursday, and UnitedHealth Group on Friday.

Highlights on the week’s economic calendar feature a pair of June inflation readings: The Bureau of Labour Statistic’s consumer price index on Wednesday, followed by the producer price index on Thursday. Consensus expectations forecast spikes of 8.8% and 10.7%, respectively.

Other indicators to be released this week include the National Federation of Independent Business’ Small Optimism index for June on Tuesday and, after that, the University of Michigan’s Consumer Sentiment Index for July on Friday. The Federal Reserve will release its fifth beige book of the year on Wednesday.

Tuesday 12/7

PepsiCo releases second-quarter fiscal 2022 earnings.

The Small Business Optimism Index for June released by The National Federation of Independent Businesses. Consensus estimates stood at a 92.8 reading, roughly level with May’s reading, which registered the fifth consecutive month below the previous 48-year average of 98. The number of small business owners expecting better conditions over the next six months has dropped by four points, landing at a net negative 54%, the lowest level recorded over the survey.

Wednesday 13/7

Delta Air Lines and Fastenal release quarterly earnings.

The Bureau of Labour Statistics releases its consumer price index for the month of June. Economists forecast an 8.8% year-over-year increase compared with May’s figure of 8.6%, which is a 40-year high. Core CPI, an exclusion of volatile food and energy prices, is seen climbing 5.7%, compared with 6%. Core CPI has rescinded somewhat since its recent peak of 6.5% in March.

The Federal Reserve releases its beige book for the fifth of eight times this year. The report compiles anecdotal evidence on prevailing economic conditions from the central bank’s 12 districts.

Thursday 14/7

An important second-quarter earnings season begins with the largest banks announcing results. The procession starts with JP Morgan Chase and Morgan Stanley, and then Citigroup and Wells Fargo on Friday.

Cintas, Conagra Brands, First Republic Bank, and Taiwan Semiconductor Manufacturing all hold conference calls to discuss earnings.

The Producer Price Index for the month of June is released by The Bureau of Labour Statistics. Expectations stand at a 10.7% annual increase and an 8.2% climb in core PPI. This contrasts with increases of 10.8% and 8.3%, respectively, in May. Both PPI and core PPI are at slightly lower levels than their record percentages set in March.

Friday 15/7

Quarterly earnings report released by Bank of New York Mellon, BlackRock, PNC Financial Services Group, State Street, U.S. Bancorp, and United Health Group.

The University of Michigan releases its Consumer Sentiment Index for July. The consensus estimation is at a 50 reading, even with June, which is the lowest record for the index, which goes as far back as 1978.

The Census Bureau releases report on retail sales for June. Retail sales are expected to have gained by 0.8% month over month after dropping nearly 0.3% in June. Excluding autos, sales are seen gaining 0.6% compared with 0.5% previously. Despite increased inflation and low sentiment, consumer spending has stayed level.

The Federal Reserve Bank of New York goes ahead to release its Empire State Manufacturing Index for the month of July. The index, combined with three other regional Federal Reserve Bank manufacturing Indexes, registered negative readings in June- an indication that there’s a contraction in that sector of the economy.