Next week promises to be a significant one for markets, with investors anticipating the start of the second quarter earnings season and the release of key June inflation data, as the U.S.-Iran conflict threatens to escalate:
The corporate reporting season kicking off next week is set to show a second straight quarter of earnings growth above 20%, an impressive feat that may confirm for investors that the bull case for equities remains intact:
Just about all of the S&P 500's returns year over year are tied to earnings growth, rather than an expanding price-to-earnings ratio:
The big banks reporting next week are likely to show investors the robust state of capital markets, especially in light of recent dealmaking activity:
Citigroup, Goldman Sachs, Wells Fargo, JPMorgan Chase, and Bank of America are all set to report their latest financials:
Earnings from ASML, the world's leading manufacturer of semiconductor manufacturing equipment, and Taiwan Semiconductor Manufacturing Company will also get a close look:
Future earnings may depend on the course of interest rates, which in turn rely on relatively tame inflation:
The June consumer price index is expected to have risen at an annual rate of 3.8%, according to FactSet consensus estimates:
Next week, Federal Reserve Chairman Kevin Warsh is scheduled to deliver his first testimony on monetary policy before Congress:
