Earnings Season Alert! Delta, PepsiCo, and major banks reveal their numbers 🚨

The major market focus for the first full week of Q3 includes the June CPI report and Federal Reserve Chairman Jerome Powell’s testimony. The CPI is expected to show a 0.1% monthly increase, with annual core inflation steady at 3.4%. Bank of America anticipates positive implications from the CPI report, noting potential cooling in rent prices. BNP Paribas suggests a decrease in auto insurance and airfares. The earnings season begins with reports from Delta Air Lines, PepsiCo, and major banks like Citigroup, JPMorgan Chase, and Wells Fargo. The event calendar features Tyson Foods’ Demo Day, Samsung’s Unpacked Galaxy event, and the Allen Conference. The auto sector will be notable with EU-China EV competition and Hyundai workers’ strike threats. Tesla’s shares are also in focus due to strong Q2 deliveries.

Inflation Insights from the June CPI Report

The upcoming CPI print is forecasted to show a modest 0.1% month-over-month rise in inflation. Analysts predict the annual core inflation rate will remain unchanged at 3.4%. This data will be closely scrutinized by investors and policymakers alike. Bank of America anticipates that the June CPI report will further bolster confidence following the promising May report. The firm highlighted that upcoming rent and owners’ equivalent rent increases are expected to cool, which should reinforce the Federal Reserve’s confidence in the inflation outlook. Additionally, BNP Paribas noted that prices for auto insurance and air fares could see a decline, contributing to a more favorable inflation scenario.

Powell’s Testimony and Its Implications

Federal Reserve Chairman Jerome Powell’s testimony to Senate and House committees will be another critical event. His insights and comments are expected to provide clarity on the Fed’s future monetary policy stance, especially in light of recent inflation trends. Market participants will be eager to gauge his outlook on interest rates, inflation control measures, and the overall economic trajectory.

The Guerilla Stock Trader Action Plan

1. Monitor CPI and Fed Testimony: Analyze implications for monetary policy and market reactions.
2. Evaluate Earnings Reports: Assess performance and guidance from key companies.
3. Track Major Events: Stay updated on Tyson Foods, Samsung, and the Allen Conference for sector insights.
4. Observe Auto Sector Developments: Watch for updates on EU-China EV competition and labor strikes in South Korea.

Kicking Off the Earnings Season

The earnings season officially begins, bringing a wave of financial disclosures from major corporations. Delta Air Lines (DAL) and PepsiCo (PEP) will be among the first to report their earnings, setting the tone for other companies. The financial sector will be particularly active with earnings reports from significant banks such as Citigroup (C), JPMorgan Chase (JPM), and Wells Fargo (WFC).

Highlighted Earnings Reports

Monday, July 8

• Greenbrier (GBX): The transportation manufacturing company will release its earnings, providing insights into the industrial sector’s performance.

Tuesday, July 9

• Helen of Troy (HELE): Known for consumer products, Helen of Troy’s report will shed light on consumer spending trends.
• SMART Global (SGH): A key player in the technology sector, SMART Global’s earnings will be closely watched for indications of tech demand.
• Kura Sushi (KRUS): The restaurant chain’s earnings will offer perspectives on the dining industry’s recovery and growth.

Wednesday, July 10

• AZZ (AZZ): The provider of galvanizing and metal coating services will report, giving insights into the construction and infrastructure sectors.
• WD-40 (WDFC): The household name in lubricants will release its earnings, reflecting consumer and industrial demand.
• Manchester United (MANU): The football club’s financial report will highlight the business side of sports entertainment.
• PriceSmart (PSMT): The warehouse club retailer will provide updates on consumer purchasing patterns in emerging markets.

Thursday, July 11

• Delta Air Lines (DAL): As one of the leading airlines, Delta’s earnings will indicate travel demand and industry recovery.
• PepsiCo (PEP): The beverage and snack giant’s report will offer a view on consumer preferences and inflation impacts on goods.
• Conagra Brands (CAG): The packaged foods company will report on how it navigates supply chain challenges and consumer demand.

Friday, July 12

• Citigroup (C): The financial institution’s earnings will be a key indicator of banking sector health.
• Fastenal (FAST): The industrial supply company will release its earnings, reflecting trends in the manufacturing sector.
• JPMorgan Chase (JPM): As a major bank, its report will provide insights into financial market conditions.
• Bank of New York Mellon (BK): The earnings will highlight trends in asset management and custodial services.
• Wells Fargo (WFC): The bank’s earnings will be scrutinized for signs of recovery and strategic direction.

Key Events and Sector Developments

Special Events and Conferences

• Tyson Foods’ (TSN) Demo Day: The event for startups will showcase innovation in the food industry.
• Samsung’s Unpacked Galaxy Event: This highly anticipated event will unveil new technology and devices, impacting the consumer electronics market.
• Allen Conference in Sun Valley: Known for attracting top executives, this conference will generate headlines with potential business deals and industry insights.

Automotive Sector in the Spotlight

The automotive sector is expected to generate significant news as tensions between the European Union and Chinese electric vehicle companies escalate. Additionally, Hyundai workers in South Korea are threatening to strike, which could disrupt production and supply chains. Tesla (TSLA) will also be under the microscope following a recent spike in shares after a better-than-expected Q2 deliveries report.

Looking Ahead

The first full week of the third quarter promises to be eventful, with crucial economic data releases, significant earnings reports, and high-profile events. Investors and analysts will be keenly observing these developments to gauge the market’s direction and economic health as the second half of the year unfolds.