Last week brought a string of blockbuster corporate reports. Those will continue in the days ahead, with big tech companies and well-known consumer names set to publish their quarterly financial updates. AI data analyst firm Palantir, chipmaker Advanced Micro Devices, and ride-hailing app Uber Technologies lead the tech names set to report. McDonald’s and Walt Disney are among the leading consumer companies on the calendar. Several noteworthy drugmakers are also scheduled to post earnings, including Novo Nordisk, Amgen, Pfizer, and Eli Lilly.
Updated data on the U.S. trade deficit comes as tariffs are remaking the landscape of international trade, while factory orders could help show whether tariffs are helping spur a rise in domestic manufacturing so far. Trade weighed heavily on stocks to close out last week, with concerns about tariffs and the health of the job market pulling all three major indexes into the red after a generally strong July. Consumer credit data later in the week will provide insight into how much Americans are spending. Market watchers will also be following comments from Federal Reserve officials after last week’s decision to keep interest rates unchanged.
Earnings from Palantir, AMD, McDonald’s, Pharma in the Spotlight
Palantir Technologies’ (PLTR) scheduled earnings report on Monday kicks off the week for investors as the firm continues to trade near record highs, lifted by optimism about AI spending trends. Advanced Micro Devices (AMD) is to report the following day, with analysts saying the chipmaker’s MI350 series chips could be competitive with Nvidia products. Analysts are also high on Uber Technologies (UBER) ahead of its scheduled report on Wednesday. McDonald’s (MCD) reportm on tap for Wednesday, is due as the burger chain has reported that traffic from middle-income households was down amid lagging consumer confidence. Disney’s (DIS) scheduled report on the same day follows the entertainment giant lifting its full-year profit outlook in the prior quarter amid subscriber growth in its streaming services. Novo Nordisk’s (NVO) expected Wednesday report comes after the Danish drugmaker lowered its full-year outlook amid declining sales of its weight-loss drugs Ozempic and Wegovy. Eli Lilly’s (LLY) report set for Thursday follows cuts to its profit outlook in May against the backdrop of high research and development costs.
Trade Data, Fed Speakers Highlight Economic Calendar
U.S. trade deficit data, due Tuesday, will provide market watchers with more insight into how President Donald Trump’s tariff policies are affecting international trade. The data comes as the gap between imports and exports is narrowing as the tariffs take hold. A report on second-quarter productivity comes as market watchers look for the impact of AI on the workforce. Updated consumer credit data will be released as economists closely watch the health of the U.S. consumer. Meanwhile, investors will also be alert to weekly jobless claims on Thursday following last week’s employment report.
After two members of the Federal Open Market Committee (FOMC) voted last week to cut interest rates, investors will be tracking public comments from San Francisco Fed President Mary Daly, Atlanta Fed President Raphael Bostic, and St. Louis Fed President Alberto Musalem for more insight into what’s next for the central bank.
What analysts are saying about U.S. stocks
Evercore ISI: “When the “news” hit this past week on tariffs, deals, and AI (MSFT, META) huge earnings gaps higher), stocks suddenly had nowhere left to run. Our base case remains a -7% to -15% pullback into the challenging Sept/Oct timeframe. What to do? Stay invested strategically in a core thematic portfolio of AI Enablers, Adopters and Adapters in AI-centric O/P sectors Comm. Svcs., Cons. Disc., Info. Tech.; the Bull Market has further to run.”
Morgan Stanley: “We think tariff-related inflation will be temporary, and tariffs could even be disinflationary/demand destructive in certain industries—i.e., in consumer where pricing power is elusive. As a result, we think the Fed will eventually transition to cuts. However, a delay of those cuts in the face of weaker growth data could lead to a correction in equity markets. As discussed previously, we’re buyers of dips, and Friday may be all we get to the downside for now.” “While there’s risk in the near-term, we are gaining confidence in our 12-month bullish view fueled by better earnings/cash flow growth.
RBC Capital Markets: “With the rally finally taking a tiny hit, and many financial market participants (ourselves included) getting ready for summer vacations, we are dusting off our four tiers of fear slide which outlines how we think about drawdowns in the US equity market from an S&P 500 perspective. If a tier 1 garden-variety pullback (5-10% drawdown) has started, it could take the S&P 500 into the 5,751-6,075 range.