Also, the CPI inflation report for June comes out on Tuesday.
While there have been a smattering of second quarter earnings trickling out in the past two weeks, they begin to roll out in earnest this week, starting, as always, with large banks and financial companies.
On Tuesday morning, five mega banks report Q2 earnings, including JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), BNY Mellon (NYSE:BK), and State Street (NYSE:STT). Also, the world’s largest asset manager, BlackRock (NYSE:BLK) releases its first quarter results.
On Wednesday, Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), PNC (NYSE:PNC), Bank (NYSE:MTB), and First Horizon (NYSE:FHN) follow suit.
Other notable banks to report this week are US Bancorp (NYSE:USB) and Citizens Financial (NYSE:CFG) on Thursday. Finally, American Express (NYSE:AXP), Ally (NYSE:ALLY), Charles Schwab (NASDAQ:SCHW), Truist (NYSE:TFC), Regions Financial (NYSE:RF) and Comerica (NYSE:CMA) report Friday.
What should we expect? Morgan Stanley analyst Betsy Graseck anticipates investment banking, trading volumes, and higher asset levels to lead the Q2 growth. M&A activity was up 30% in Q2 compared to the same quarter a year ago, while trading volume rose 49% year-over-year, wrote Graseck in a research note, according to Seeking Alpha. In addition, the Nasdaq gained some 13% in Q2 while the S&P 500 gained roughly 4%.
These results should spur higher revenue and earnings from these banks and financial firms. Banks could also see lower loss provisions due to an improved economic outlook compared to Q1.
Netflix expected to have strong quarter
While banks are in the spotlight, there are some other significant names to report earnings this week, starting with streaming leader Netflix (NASDAQ:NFLX) on Thursday. Analysts expect earnings of $7.06 per share on revenue of $11.04 billion.
Analysts at Wedbush are even more bullish, calling for earnings of $7.18 per share on revenue of $11.16 billion.
“Given the strong backdrop heading into the second half of 2025, we believe Netflix will be well-positioned to exceed its Q2 guidance and provide solid guidance for the remainder of the year,” Wedbush analyst Alicia Reese wrote in a research note, according to Kiplinger’s.
Other notable earnings this week are grocery store chain Albertsons (NYSE:ACI) on Tuesday; semiconductor firm ASML (NASDAQ:ASML), United Airlines (NYSE:UAL), and consumer staple Johnson & Johnson (NYSE:JNJ) on Wednesday; Abbott Labs (NYSE:ABT), GE Aerospace (NYSE:GE), and PepsiCo (NYSE:PEP) on Thursday, and chemical company 3M (NYSE:MMM) on Friday.
CPI inflation this week
Aside from the earnings kick off, there are two major economic reports to drop this week, including the Consumer Price Index (CPI) on Tuesday. CPI inflation rose in May to 2.4%, marking the first time since January it has gone up.
With the tariffs in full effect, economists expect inflation to rise again in June, with the consensus targeting 2.7% inflation and 3.0% core CPI inflation. The core CPI would be up from 2.8% in May.
The direction of inflation, and the size of any move one way or another, could have a major impact on what the Federal Reserve does with interest rates when it meets on July 30.
The other key economic report to come this week is Retail Sales on Thursday. In May, retail sales actually declined by 0.9%, performing worse than expected, as consumers were cautious in uncertain economic conditions and wary of price hikes. In June, economists project retail sales to increase 0.2%.
