The later part of this week will be all about earnings, earnings and earnings. Investors will also be on the lookout for companies willing to offer strong guidance for the rest of the year.
On Monday, Uncle Sam will report on his profit and loss for the month of June. More specifically, the Congressional Budget Office will estimate the budget deficit for June which should be close to $100 billion. Also, Treasury Secretary Tim Geithner will meet with top officials in Britain to discuss how to get the economy moving again.
Tuesday is Bastille Day. We’re going to get two key reports; the first will be on wholesale inflation during June, the other will be for retail sales. I still expect that inflation will creep up but I don’t think there will be much evidence in this report.
On Wednesday, we’ll get the report on consumer inflation during June and also on industrial production. We’ll probably see another drop in industrial production plus an increase in consumer prices. The Fed will also release the minutes from its June meeting.
On Thursday, JPMorgan (JPM), Google (GOOG) and IBM (IBM) report earnings. The government will also report on initial unemployment claims for last week.
Finally on Friday, General Electric (GE), Citigroup (C) and Bank of America (BAC) report earnings. We’ll also get a report on housing starts for June.