Wall Street Week Ahead: Alphabet, Intel, Tesla earnings take center stage
AI Summary
Investors are focusing on a busy corporate earnings week, with key reports from Alphabet and Intel expected to provide insights into AI spending and market momentum. Other notable companies reporting include Tesla, American Express, and IBM, which could shed light on consumer demand and economic conditions. While the economic calendar is light, upcoming PMI surveys and housing data may influence market sentiment ahead of the Federal Reserve's next meeting.
Wall Street is heading into a relatively light week for economic data, shifting investors' focus firmly toward a packed corporate earnings calendar that could determine the market's next direction.
Following the recent sell-off in semiconductor stocks, quarterly results from Alphabet, Google's parent company, and chipmaker Intel are expected to be closely watched for fresh clues on the outlook for artificial intelligence spending and whether the AI-driven rally can regain momentum.
Several other high-profile companies are also scheduled to report earnings during the week. Investors will monitor updates from Tesla, led by Elon Musk, along with American Express, Philip Morris, defense giant RTX, and technology company IBM for insights into consumer demand, corporate spending and broader economic conditions.
Although the economic calendar is relatively subdued, several key reports could still influence market sentiment. These include preliminary Purchasing Managers' Index (PMI) surveys for the manufacturing and services sectors, June's leading economic indicators, and data on new home sales for June.
The releases are expected to provide investors with a clearer picture of the health of the U.S. economy ahead of the Federal Reserve's next monetary policy meeting on July 29. Market participants will be looking for signs of whether economic activity remains resilient or shows evidence of slowing.
According to LSEG data, money markets are not fully pricing in another 25-basis-point Federal Reserve interest rate hike until December, suggesting traders continue to expect policymakers to remain cautious in the near term.
Beyond earnings and economic data, geopolitical developments will also remain in focus. Investors will closely monitor the evolving situation in the Middle East to assess whether tensions between the United States and Iran continue to escalate or begin to ease, as any significant developments could affect global risk sentiment and energy prices.
The U.S. Treasury's debt auctions will also draw attention during the week. The Treasury is scheduled to sell $13 billion worth of 20-year bonds on Wednesday, followed by an auction of $21 billion in 10-year Treasury Inflation-Protected Securities (TIPS) on Thursday.
July 20 (monday): A report on leading economic indicators for June will be released. A meeting of Federal Reserve Board of Governors is scheduled.
July 23 (Thursday): Data on weekly jobless claims for the week ended July 18 will be released.
July 24 (Friday): Separate reports on US flash manufacturing PMI for July, Flash Services PMI for July, and new home sales for June will be released.
Following companies are scheduled to declare their quarter results in the week ahead – AMC Entertainment Holdings, General Motors, AT&T, GE Vernova, Philip Morris International, RTX, Alphabet, International Business Machines (IBM), QuantumScape Corp, ServiceNow, Tesla, Blackstone, Intel Corp, American Express, and Verizon Communications.
The widening rout in artificial intelligence equities dragged US equity indexes down sharply during Friday's trading session.
The S&P 500 fell 76.08 points, or 1%, to 7,475.69. The Dow Jones Industrial Average fell 406.55 points, or 0.8%, to 52,146.42. The Nasdaq Composite fell 361.70 points, or 1.4%, to 25,520.24.
The Russell 2000 index of smaller companies fell 12.35 points, or 0.4%, to 2,962.22.
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Published on Livemint