The earnings season picks up speed in the coming week with a rush of reports from the financial and tech industries.
The remaining big banks will be under the microscope after a jam-packed week in which industry giants such as Citigroup (C - Get Report) and JPMorgan Chase (JPM - Get Report) reported their second-quarter performances. Financials have endured a more challenging operating environment in the face of market turmoil and weaker lending profitability with low interest rates, though most did manage to beat reduced quarterly expectations.
Bank of America (BAC - Get Report) and Charles Schwab (SCHW - Get Report) will report earnings on Monday morning; Goldman Sachs (GS - Get Report) and Discover Financial (DFS - Get Report) are set for Tuesday; American Express (AXP - Get Report) is slated for Wednesday; and Blackstone (BX - Get Report) , Visa (V - Get Report) and Capital One (COF - Get Report) are set for Thursday.
Second-quarter earnings are expected to decline by 4% from the year-earlier quarter, according to the Thomson Reuters consensus estimate. That marks the fifth straight quarter in decline, according to FactSet, the worst losing streak since the financial crisis. However, many analysts believe this quarter will act as a bottom for coming quarters to rebound from.
"Although it is early in the earnings season, thus far reports are not flashing warning signs for investors," Jim Davis, regional investment manager for the Private Client Group of U.S. Bank, told TheStreet. "Next week, earnings season kicks into high gear. We believe the trend of positive surprises along with optimistic guidance will be necessary to see higher equity prices going forward."
Consumer and tech stocks will dominate the earnings calendar in the coming week. Netflix (NFLX - Get Report) , IBM (IBM - Get Report) , Hasbro (HAS - Get Report) and Yahoo! (YHOO) will report on Monday; Electronic Arts (EA - Get Report) , Johnson & Johnson (JNJ - Get Report) , Microsoft (MSFT - Get Report) and United Airlines (UAL - Get Report) on Tuesday; eBay (EBAY - Get Report) , IMAX (IMAX - Get Report) , Intel (INTC - Get Report) , Mattel (MAT - Get Report) and Qualcomm (QCOM - Get Report) on Wednesday; Advanced Micro Devices (AMD - Get Report) , AT&T (T - Get Report) , Chipotle (CMG - Get Report) , Dunkin' Brands (DNKN - Get Report) , General Motors (GM - Get Report) , Pandora (P) , Southwest (LUV - Get Report) and Starbucks (SBUX - Get Report) on Thursday; and American Airlines (AAL) , VF Corp (VFC - Get Report) and Vodafone (VOD) on Friday.
Industrials and energy companies including Lockheed Martin (LMT - Get Report) , Halliburton (HAL - Get Report) , General Electric (GE - Get Report) and Honeywell (HON - Get Report) are also set to report in the coming week.
The housing sector will be in the spotlight with housing starts and building permits for June due for release on Tuesday and existing home sales for June out on Thursday. Housing starts measure how much construction began for privately owned new homes over any given month, while building permits look at the number of permissions given to begin construction. The existing home sales reading measures completed transactions for already-built single-family homes, condos and co-ops.
No Federal Reserve members are scheduled to speak in the coming week. The chances of a rate hike this year recently increased after recent data showed a rebound in the number of jobs added to the U.S. economy in June, a sign the recovery continues to chug along. Economists still only anticipate one rate hike this year, most likely in December.
Th Republican convention will be held in the coming week in Cleveland. Presumptive Republican presidential nominee Donald Trump on Friday picked his running mate -- Indiana Gov. Mike Pence.