Retail Sales, Consumer Sentiment, Bank Earnings: 3 Things to Watch
2022.07.14 23:14
By Liz Moyer
Investing.com — Stocks retraced some of their losses on Thursday but still headed for a mostly lower close after bank earnings cast a shadow over the outlook for the economy.
More bank earnings will come Friday and Monday, and analysts will be waiting to hear what their outlooks are for lending and credit quality. JPMorgan (NYSE:JPM), the biggest U.S. bank, disappointed with earnings and said it set aside money for credit losses and would suspend its share buyback program, setting a downbeat tone for stocks on Thursday.
Tech earnings also start rolling out next week. Rising interest rates and a strong dollar could spell trouble for their outlooks, as well.
The Federal Reserve is set to meet later this month to decide the next step on interest rates, and analysts have been raising their bets that a full 1% rate increase could be in the offering after stronger-than-expected consumer and producer price inflation data this week. That has set up even more economists to forecast a recession, however mild, in the near future as the Fed puts the breaks on an economy that has been running hot for months.
Here are three things that could affect markets tomorrow:
1. Retail sales
After the consumer price index showed a 9.1% gain for June, it could be expected that retail sales would also jump. Fuel price jumps have caused a lot of the gains in prices in the last few weeks, though there is evidence fuel prices are finally starting to come down. For June, though, retail sales are expected to rise 0.8% from the prior month, when they fell 0.3%. The data come out at 8:30 AM ET.
2. Michigan consumer sentiment
The first reading from Michigan on consumer sentiment in July is due out at 10:00 AM ET. Analysts expect a reading of 49.9, which would be pessimistic and slightly below the previous 50 reading.
3. Bank earnings
Wells Fargo & Company (NYSE:WFC) is expected to report earnings of 85 cents a share on revenue of $17.6 billion, while Citigroup Inc (NYSE:C) is expected to report EPS of $1.65 on revenue of $18.3 billion.
