Earnings season begins: big companies face busy week

What is going on here?

Earnings season kicks off this week with a wave of reports from blue-chip firms like Goldman Sachs, BlackRock and Johnson & Johnson, putting the spotlight on corporate earnings and market reactions.

What does it mean?

It’s a key week for markets as heavyweights across multiple sectors reveal their Q2 2024 results. Investors will be looking at these results for insights on everything from consumer corporate health spending trends. Goldman Sachs and BlackRock are launching on July 15 ahead of the U.S. market open, setting the tone for the financial sector. Companies like UnitedHealth, Morgan Stanley and Johnson & Johnson are following closely behind, releasing key data that could shift market sentiment. These earnings reports offer a snapshot of economic resilience amid ongoing inflation concerns and potential interest rate adjustment.

Why should I care?

For markets: Maneuvers in results season.

The financial sector will be under scrutiny as Goldman Sachs, Morgan Stanley and BlackRock report. These earnings could signal how robust the banking and investment landscapes are, affecting both warehouse pricing and regulatory outlook. Investors will also be watching companies like UnitedHealth and Johnson & Johnson for clues about health care spending trends and drug prices.

Bigger picture: Economic Pulse Survey.

With a diverse group of companies, from United Airlines to Netflix, reporting results, the reports will collectively paint a broader picture of the health of individual sectors and broader economic trends. Strong earnings could bolster confidence in a steady economic recovery, while disappointing results could fuel fears of a slowdown, affecting everything from stock prices to central bank policy decisions.