After a June jobs report that topped expectations, markets will turn their focus this week to the beginning of second quarter earnings season.
Financial stocks will be the focus this week, with Friday morning expected to be jam-packed as results from PNC (PNC), JP Morgan (JPM), Citi (C), and Wells Fargo (WFC) all expected out.
Elsewhere in earnings this week markets will get results from Pepsi (PEP) on Tuesday and Delta Air Lines (DAL) on Thursday.
Julian Emanuel, strategist at UBS, notes that with expectations so high for the financial sector — which has taken up a leadership role in the market amid weakness in big-cap tech names — better-than-expected earnings may not be enough to drive the sector.
Emanuel adds that price action from big financial stocks as well as the “FAAMG” tech stocks which have powered the market “will hold the key for whether the current ‘Summer Squall’ in Tech will continue to pressure the broad market.”
On the economic data side, we’ll get a check on consumer spending with retail sales, a check on inflation, and an update on job openings in the U.S. during the week.
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