The First Slice for Monday, July 24, 2022

There’s a head-spinning amount of news for markets to navigate in the week ahead, the biggest of which will be the Federal Reserve’s midweek meeting.

The two largest U.S. companies — Microsoft and Apple — report Tuesday and Thursday, respectively. Google parent Alphabet releases results Tuesday, and Amazon reports ThursdayMeta Platforms, formerly Facebook, reports Wednesday. In all, more than a third of the S&P 500 companies are reporting.

On top of that are several hefty economic reports, which should add fuel to the debate on whether the economy is heading toward, or is already in, a recession.

Second-quarter gross domestic product is expected Thursday. The Fed’s preferred personal consumption expenditures inflation data comes out Friday morning, as does the employment cost index. Home prices and new home sales are reported Tuesday and consumer sentiment is released Friday.

The run-up to the Fed’s meeting on Tuesday and Wednesday has already proven to be dramatic, with traders at one point convinced a full-point rate hike was coming. But Fed officials pushed back on that view, and economists widely expect a second three-quarter point hike to follow the one last month.

Topping the list is the second-quarter GDP, expected to be negative by many forecasters. A contraction would be the second in a row on top of the 1.6% decline in the first quarter. Two negative quarters in a row, when confirming declines in other data, is viewed as a sign of a recession.

The widely watched Atlanta Fed GDP Now was tracking at a decline of 1.6% for the second quarter. According to Dow Jones, a consensus forecast of economists expects a 0.3% increase.

Week ahead calendar

Monday

Earnings: Newmont Goldcorp, SquarespaceWhirlpool, NXP Semiconductor, TrueBlue, F5

Tuesday

EarningsMicrosoft, Alphabet, Coca-Cola, McDonald’s,General Motors3M, UPSPulteGroup, Raytheon TechnologiesTexas Instruments, Archer-Daniels-Midland, Chubb, Chipotle Mexican Grill, Mondelez International, Canadian National Railway, Pentair, LVMH, Paccar, Kimberly-Clark, Albertsons,General Electric, Ameriprise, Teradyne, Ashland, Boston Properties, FirstEnergy, Visa

FOMC begins 2-day meeting

9:00 a.m. S&P/Case-Shiller home prices

9:00 a.m. FHFA home prices

10:00 a.m. New home sales

10:00 a.m. Consumer confidence

Wednesday

Earnings: Boeing, Meta PlatformsBristol-Myers SquibbFord,Etsy, Qualcomm, T-Mobile, Kraft HeinzNorfolk Southern, Netgear, Cheesecake Factory, American Water Works, Ryder System, Genuine Parts, Waste Management, Hilton Worldwide, Boston Scientific, Owens Corning, Sherwin-Williams, Fortune Brands, Lam Research, Flex, Hess, Community Health Systems, Molina Healthcare

8:30 a.m. Durable goods

10:00 a.m. Pending home sales

2:00 p.m. FOMC statement

2:30 p.m. Fed Chair Jerome Powell press briefing

Thursday

Earnings: Apple, AmazonComcast, Intel, Merck, Pfizer,Honeywell, Mastercard, Northrop Grumman, Southwest Air, Harley-Davidson, Anheuser-Busch InBev, Diageo, Shell, Stanley Black and Decker, Carlyle Group, Southern Co, Lazard, Roku, International Paper, Sirius XM, Hershey, PG&E, ArcelorMittal, Keurig Dr. Pepper, Hertz Global, T.Rowe Price, Valero,Embraer, First Solar, Beazer Homes, Hartford Financial, Celanese, VF Corp, Eastman Chemical, Frontier Group

8:30 a.m. Initial claims

8:30 a.m. Real GDP [Q2 advanced]

Friday

Earnings: AstraZeneca, Weyerhaeuser, Sony, BNP Paribas, Eni, Aon

8:30 a.m. Employment Cost Index

8:30 a.m. Personal income/spending

8:30 a.m. PCE deflator

9:45 a.m. Chicago PMI

10:00 a.m. Consumer sentiment

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