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Big Banks, PepsiCo, Inflation Readings: 3 Things to Watch

Stock MarketsJul 12, 2021 03:34PM ET
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By Dhirendra Tripathi

Investing.com -- Investors piled into bank stocks ahead of this week’s earnings from the biggest of the group, pushing the broad market to another record high.

The S&P 500 surged on Monday, as did the other indexes. Banks are seen as a beneficiary of a reopening economy, though the comparisons to last year’s robust trading activity could be challenging. Low interest rates also cut into bank profit from lending.

On the economic front, the government will release the June readings of inflation trends on Tuesday, and Federal Reserve Chairman Jerome Powell is scheduled to testify before Congress starting on Wednesday.

Over the weekend, Virgin Galactic Holdings Inc (NYSE:SPCE) founder Richard Branson completed a successful test flight of his space vehicle, setting the stage for the opening of space tourism in the near future. Virgin Galactic shares fell 14% on Monday after the company announced a share sale.

Amazon (NASDAQ:AMZN) founder Jeff Bezos is scheduled to take a flight to the edge of space on his own rocket, through his space company Blue Origin, next week.

As companies kick off earnings this week, here are three things that could affect markets tomorrow:

1. Big bank earnings

JPMorgan Chase & Co (NYSE:JPM)is expected to report earnings on Tuesday, and analysts tracked by Investing.com expect earnings per shares of $3.16 on revenue of $30 billion. Rival investment bank Goldman Sachs Group Inc (NYSE:GS), which also reports its second quarter on Tuesday, is expected to announce EPS of $9.96 on revenue of $12.04 billion.

2. More earnings

PepsiCo Inc (NASDAQ:PEP)Is expected to report EPS of $1.53 a share on revenue of $17.97 billion. More than half the analysts who follow the soft drink and snack maker rate the stock a buy, with an average price target of $156, which is 5% higher than its current level.

3. Inflation data

The consumer price index for June is expected to have risen by an annual rate of 4.9%, a trifle lower than May’s 5%. The Bureau of Labor Statistics report will release the numbers Tuesday at 8:30 AM ET (1230 GMT).

The core inflation rate in the U.S., which excludes food and energy prices, is expected to have climbed 4% in June from a year ago against 3.8% run-up in May, which was then the quickest pace of increase since May 1992.

 

Big Banks, PepsiCo, Inflation Readings: 3 Things to Watch
 

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Comments (8)
SquadW Name
SquadW Jul 13, 2021 5:44AM ET
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what will happen if inflation is big? people will dip tech stocks and buy value/commodity stocks and gold?
Fin Tecker
Fin Tecker Jul 13, 2021 5:44AM ET
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Higher inflation rate than expected will lead to more tapering and rising interest rate which good for dollar bad for gold and interest rate sensetive stocks like growth stocks.
Renante Baniaga
Renante Baniaga Jul 13, 2021 4:43AM ET
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awesome keep it up!
Renante Baniaga
Renante Baniaga Jul 13, 2021 4:42AM ET
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awesome keep it up!
Sarunas Simkus
Sarunas Simkus Jul 12, 2021 6:37PM ET
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CPI to be announced and Jerome Powell speaking, hmm, I am thinking two things: cash and buy the dip
Jared Magnums
Jared Magnums Jul 12, 2021 4:52PM ET
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I lose brain cells everytime i read the comments here… 🤦🏻‍♂️
CHADWICK RICHINGTON
CHADWICK RICHINGTON Jul 12, 2021 4:27PM ET
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Banks will collapse in September
Dave Jones
Dave Jones Jul 12, 2021 4:12PM ET
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how can inflation exclude food housing and energy? These are the 3 things people spend most of their money on....oh wait.
Bright Heflide
Bright Heflide Jul 12, 2021 3:45PM ET
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lol,hi
 
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