• Investors are watching for earnings reports this week from several Big Tech firms, including Tesla, Google parent Alphabet, and IBM. Several pharmaceutical companies will also deliver financial updates, with AbbVie, AstraZeneca, and Bristol Myers Squibb set to report. 
  • The June personal consumption expenditures index on Friday will be the last report on inflation before the Federal Reserve next meets.
  • Investors also will get their first look at a second-quarter gross domestic product on Thursday.
  • President Biden on Sunday said he would not seek reelection.  

Investors are gearing up for a pivotal week with earnings reports from major companies, including Tesla, Alphabet, Visa, and several pharmaceutical giants. This comes as President Joe Biden announced he would not seek reelection, endorsing Vice President Kamala Harris.

Corporate Earnings Highlights

Tesla’s earnings on Tuesday are highly anticipated, especially after its strong quarterly delivery report. Alphabet also reports on Tuesday, following a robust previous quarter. Other key reports include Visa, IBM, Verizon, and major pharmaceutical firms like AbbVie and AstraZeneca.

Economic Indicators and Fed Watch

The June personal consumption expenditures (PCE) index, a critical inflation measure, will be released on Friday. This data is crucial ahead of the Federal Reserve’s next meeting, providing the last inflation update before the Fed decides on potential rate cuts. Additionally, the first estimate of Q2 GDP will be available on Thursday, following a strong retail sales report for June.

Market Reaction to Biden’s Decision

Biden’s announcement and Harris’ endorsement have added a political twist to market dynamics. Investors are also awaiting updates on new and existing home sales, consumer sentiment, and the U.S. trade deficit.

Monday, July 22

  • SAP (SAP)1, Verizon Communications2, Ryanair Holdings (RYAAY),3 and Truist Financial (TFC)4 report earnings. 

Tuesday, July 23

  • Existing home sales (June)5
  • Alphabet,6 Tesla7, Visa8, Coca-Cola (KO)9, GE Aerospace (GE)10, Comcast (CMCSA), 11 and United Parcel Service (UPS)12 report earnings

Wednesday, July 24

  • S&P Global flash composite U.S. PMI (July)13
  • New home sales (June)14
  • Advance international trade (June)15
  • Advance retail inventories (June)16
  • Advance wholesale inventories (June)17 
  • Thermo Fisher Scientific (TMO)18, IBM19, ServiceNow (NOW)20 and AT&T21 report earnings

Thursday, July 25

  • Gross domestic product (GDP) (Q2)22
  • Durable goods (June)23
  • AbbVie24, AstraZeneca25, Union Pacific Corp (UNP)26, Unilever (UL)27 and Honeywell International (HON)28 report earnings

Friday, July 26