Newsquawk Week Ahead: US CPI, Powell Testimony and US Earnings – Buckle Up!

Get ready for a week packed with economic data, central bank pronouncements, and key corporate earnings reports. This week’s calendar is brimming with events that could shake up financial markets.

Inflation in Focus: US CPI and its Impact

The week kicks off with the US Consumer Price Index (CPI) release on Tuesday, July 11th. This report will be closely watched by investors and policymakers alike to gauge the pace of inflation in the US economy. In June, the CPI rose by 4.0%, demonstrating that inflation is still elevated.

The market expects a similar reading for July, with a forecast of 3.9%. However, any surprises in the data could spark significant market volatility. A higher-than-expected reading could pressure the Federal Reserve to maintain its hawkish stance on interest rates, while a lower reading could open the door for a more dovish approach.

Powell’s Testimony: Navigating the Rate Landscape

On Wednesday, July 12th, Federal Reserve Chair Jerome Powell will testify before Congress, shedding light on the Fed’s latest thinking on inflation and monetary policy. His testimony will be closely scrutinized for any hints about the future trajectory of interest rates.

Remember, the Fed’s recent decision to hold rates steady was seen as a pause, not a pivot. Powell’s testimony will offer insights into how the Fed plans to balance the need to fight inflation with the risk of tipping the economy into a recession.

US Earnings Season: A Spotlight on Corporate Performance

The earnings season continues to unfold this week, with several high-profile companies set to report their quarterly results.

Here are some key names to watch:

• JPMorgan Chase (JPM) – The largest US bank by assets, will provide insight into the state of the banking sector and consumer spending.

• Citigroup (C) – Another key player in the financial sector, Citigroup’s earnings will offer additional insights into the health of the banking industry.

• Wells Fargo (WFC) – This bank’s earnings will also be closely watched for signs of consumer sentiment and lending activity.

Earnings season is a crucial period for investors. Companies’ performance can reveal a lot about their underlying health and their future prospects. Any unexpected earnings surprises could lead to significant stock price swings.

Stay Tuned for Market Volatility

This week’s economic calendar is packed with potentially market-moving events. Be prepared for volatility as investors digest the incoming data and adjust their investment strategies accordingly.

Remember: This is just a brief overview of the key events to watch this week. Stay informed and seek out reliable financial analysis to make informed investment decisions.