Benchmark US stock indices entered this new trading week on the back of fresh record highs, with the S&P 500, the Dow Jones, and the Nasdaq 100 all recording their highest-ever closing prices this past Friday.

And at the start of the Asian session today, the futures contracts for all 3 indices are little changed, hovering close to those all-time peaks.

Investors will have plenty of hard economic data and other major events on the global markets calendar to contend with this week, especially the US earnings season which will begin in earnest tomorrow:

Monday, July 12

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  • UK PM to announce lifting of most social distancing measures by 19 July?

Tuesday, July 13

  • China trade
  • Fed speak: Minneapolis Fed President Neel Kashkari, Atlanta Fed President Raphael Bostic, Boston Fed President Eric Rosengren
  • US CPI
  • US earnings season kicks off

Wednesday, July 14

  • Rate decisions: Reserve Bank of New Zealand and Bank of Canada
  • Industrial production for Eurozone, Japan
  • UK inflation
  • EIA crude oil inventory report
  • US PPI, Fed Beige Book

Thursday, July 15

  • China Q2 GDP, retail sales, industrial production
  • OPEC monthly oil outlook
  • UK unemployment
  • US industrial production, initial jobless claims
  • Fed speak: Chicago Fed President Charles Evans
  • Fed Chair Jerome Powell delivers semi-annual Monetary Policy Report

Friday, July 16

  • Bank of Japan policy decision
  • Fed speak: New York Fed President John Williams
  • US retail sales

 

Wall Street banks could influence US stock indexes this week

Here are some of the financial heavyweights that are due to report their respective Q2 earnings over the coming days:

Tuesday, July 13

Wednesday, July 14

Thursday, July 15

Note that these 6 major banks have a combined market cap of over US$1.4 trillion as of the close on 9 July, while the S&P 500 has a market cap of US$38.6 trillion. In other words, these 6 banking stocks altogether account for 3.7% of the S&P 500’s total market cap.

While that 3.7% figure may not seem like much, these marquee names tend to influence the performance of financial stocks as a whole. Keep in mind that the financial stocks collectively account for over 11% of the S&P 500. And one-tenth of the index holds enough sway over how it performs.

Better-than-expected earnings for these banking heavyweights could help propel S&P 500 higher.

Still, banking stocks have been battling concerns of late that the US economy may need more time to heal. Another flare up of such concerns could result in a downwards tug on the index, although other sectors that stand to benefit from the continued ultra-accommodative policy stance by the Fed could help offset such downward pressures.

 

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