Week ahead: Bank earnings, Powell testimony, inflation update

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Start your financial engines!

Ready or not it's earnings season again..

That’s at the top of the agenda for the Reuters Business Calendar for the week of July 12th.

#1 Banking on high earnings

It all starts with the banks. J.P. Morgan Chase and Goldman Sachs kick things off on Tuesday.

Bank of America, Citigroup and Wells Fargo follow up on Wednesday.

Morgan Stanley brings up the rear for the major financial institutions on Thursday.

Wall Street analysts predict there will be a stunning turnaround in second quarter profits compared with the same time a year ago.

Bank of America, Citigroup, JPMorgan and Wells Fargo are expected to report a combined $24 billion in profits…way up from the $6 billion in Q2 2020.

Excluding a drag from low interest rates , banks have a lot going right, says Hilary Kramer of Kramer Capital Research.

"Banks are going to be off the charts; doing well in terms of earnings because they're right there in the middle, taking these massive fees with everything from advisory to restructurings to initial public offerings to venture capital and private equity and everything is just like on fire."

#2 Pepsi fizzes while Delta fizzles

Rounding out the major corporate results for the week. PepsiCo. is out on Tuesday.

The consensus calls for earnings per share of $1.53. Revenues expected to grow to just under $18 billion.

Numbers for Delta Air Lines land on Wednesday. Expect another money-losing quarter for the global airline. Revenues are expected to come in at $6.2 billion.

#3 Pricing in the market

On the economic docket: The consumer price index for June is released Tuesday. Economists predict core prices jumped 4 percent in the 12 months through June and that's on top of what happened in May, which saw the biggest annual inflation surge in almost 3 decades.

That’s followed up by wholesale prices on Wednesday. A month-to-month cool down is predicted. The Producer Price Index, excluding food and energy, is likely to show a half-percent rise for June after a 0.7 percent rise the month before.

#4 The Fed opens up its Beige Book

All those figures are likely to contribute to what we hear from the Fed’s summary of economic conditions known as the Beige Book.

That report, which is put together by one of the regional Fed banks, is what policymakers will use to help make their decision when the Fed meets at the end of the month.

The Beige Book comes out on Wednesday.

Sticking with the Fed.

Federal Reserve Chairman Jerome Powell delivers his semiannual monetary policy testimony before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Thursday.

#5 Space Jam secures its legacy

Finally, we always like to take a look at the business of Hollywood.

Basketball phenom LeBron James laces up for the long-awaited sequel to "Space Jam".

The cartoon/live action flick also brings together the star power of Don Cheadle, Bugs Bunny and all the Looney Tunes characters.

Warner Bros.' "Space Jam: A New Legacy" will debut Friday - both on theater screens and on the HBO Max streaming service.