The corporate reporting season on Wall Street is gradually coming to an end, and this week traders will focus on the US inflation data for July (Consumer Price Index, CPI). According to the forecast of UBS senior economist Alan Detmeister, they will reflect the impact of duties on price growth in the world's largest economy and will start a multi-month upward inflationary trend, writes Yahoo Finance. Detmeister warned that core CPI, which excludes highly volatile food and energy prices, could rise at an annualized rate from 2.9% in June to 3.5% by the end of 2025.

China is expected to release a slew of statistics that could give the market insight into the impact of the trade war with the U.S. on industry, investment and consumer demand, The Wall Street Journal reported.

Only eight companies in the S&P 500 Index will report earnings this week. According to Yahoo Finance, the financial results of Cava, Cisco and Deere & Company will be of particular interest. In addition, investors expect Chinese retail and entertainment giants JD.com and NetEase to report earnings.

Barrick Mining, Franco-Nevada and Oklo will report last quarter results on Monday, August 11.

On Tuesday, August 12, the U.S. Bureau of Labor Statistics (BLS) will release the Consumer Price Index (CPI) for July. The consensus forecast calls for a 2.8% year-over-year increase, up one-tenth of a percentage point from June, according to Barron's. The core CPI should rise 3% after 2.9% in June, according to the forecast.

The inflation rate affects the monetary policy of the US Federal Reserve. But traders now estimate the probability of a rate cut at the next meeting of the US Fed at 90%. June's inflation data showed early signs of accelerating commodity price growth, and the impact of duties on prices should have picked up a bit in July, Citi suggested. This will not prevent the Fed from lowering rates next month, especially given the weak labor market, as the effect of duties will become obvious only in the fall, the investment bank believes.

Cava, Circle, CoreWeave, On Holding, Pony AI and Rigetti Computing will report quarterly financial results.

Cisco Systems, Coherent and Venture Global will report earnings on Wednesday, August 13th.

On Thursday, August 14, the BLS will release the Producer Price Index (PPI) for July. Wall Street expects a 2.5% year-over-year increase, up 0.2 percentage points from June. The forecast for Core PPI is for a 2.9% increase, up from 2.6% a month earlier.

Eurostat will release industrial production data for June and the second estimate of GDP for last quarter.

Applied Materials, Birkenstock, Deere, JD.com and NetEase will report quarterly results.

On Friday, August 15, the U.S. Census Bureau will reveal July retail sales statistics. The consensus forecast suggests a slowdown of 0.5% month-on-month growth after 0.6% in June.

China will release data on industrial production, investment and retail sales. Economists on average expect industrial production growth to slow to 5.8% year-on-year in July from June's 6.8%, fixed asset investment to slow to 2.7% from 2.8%. Meanwhile, retail sales are expected to increase by 5% in July from 4.8% in June due to a boom in summer travel.

This article was AI-translated and verified by a human editor

Share