A slew of quarterly earnings will hit Wall Street this week, as well as two key reports on inflation, as investors continue to wrestle with Fitch Ratings' downgrade of U.S. credit worthiness last week and the potential fallout.
All three of the major indexes fell last week over 1%.
The tech-heavy Nasdaq Composite dropped the most at 3% due to weakness in shares of Apple after forecasting a slowdown in revenue growth next quarter.
Consumer credit data in the U.S. will be released to start the week’s economic reporting, while quarterly earnings from Tyson Foods, Lucid Motors, Beyond Meat and Paramount Global kick off earnings.
A package of Tyson Foods Inc. crispy chicken strips arranged in Dobbs Ferry, N.Y., Feb. 6, 2021. (Tiffany Hagler-Geard/Bloomberg via Getty Images / Getty Images)
In May, Tyson Foods announced the company would shut down two of its poultry plants and lay off nearly 1,700 workers as it tries to improve its chicken operations that produce about one-fifth of the U.S. supply.
Duke Energy, Rivian Automotive, Lyft and UPS will report results Tuesday.
For the delivery giant, it will be the first quarter following the $30 billion contract inked with the Teamsters last month.
Meanwhile, Lyft reported a disappointing outlook in May and announced last month it would shutter its car rental business and lay off about 60 workers. Shares of rival Uber could also be active.
The Walt Disney Company will showcase Wednesday’s list of quarterly earnings, alongside Honda and Lordstown Motors.
Disney has been rocked in recent months by executive turnover, declining theme park attendance and legal battles with Florida Gov. Ron DeSantis. Amid the turmoil, CEO Bob Iger is under pressure to formalize a succession plan.
Bob Iger, CEO of The Walt Disney Co. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Iger inked a two-year extension with Disney in early July, ensuring he held the chief executive position at the California-based entertainment giant until the end of 2026.
Disney shares are little changed this year compared to the S&P 500's 16.6% gain.
Also on Wednesday, economic reporting will include data on gasoline inventories, crude oil imports and supply.
Over the last three months, the price of oil is up nearly 16% and is now roughly 2.72% higher on the year.
And GM's Cadillac is expected to unveil a new version of its electric Escalade.
The 2023 Cadillac Escalade-V cruising down a highway in Phoenix, Ariz. (Cadillac / Fox News)
The consumer price index (CPI) for July is expected to show inflation continues to moderate. Economists expect a 3.1% rise down from June's 3% increase, while core inflation is expected to hold at 4.8%. Both levels remain above the Federal Reserve's 2% mandate.
In earnings, China's Alibaba is set to report, along with Ralph Lauren, a measure of luxury spending.
The producer price index (PPI) is expected to show a mixed bag. Annually, inflation is seen rising 0.7% above the prior month's 0.1%, while core inflation is seen easing to 2.1% vs. 2.4%.