Market Digest: CNP, NUE, XEL, W, ZM

Summary

Key inflation data is coming this week and AI superstar Nvidia reports earnings. Wall Street will continue to absorb comments from Fed Chairman Jerome Powell from last week, noting that the Fed is ready to start easing monetary policy. The Dow Jones Industrial Average ended last week up 1.3%, the S&P 500 gained 1.5%, and the Nasdaq was higher by 1.4%. Year to date, the DJIA is higher by 9%, the S&P is up 18%, and the Nasdaq has popped 19%. On the economic calendar, inflation data via PCE is the highlight of the week, to be reported on Friday. In June, the PCE (Personal Consumption Expenditures) came in at 2.5%. We see that bumping up slightly to 2.6%. Core PCE came in at 2.6% for June. We see no change for July. Elsewhere, Durable Goods Orders will be reported on Monday. On Tuesday, the Case-Shiller Home Price Index and Consumer Confidence hit the tape, and on Thursday, GDP will be updated. Several Fed officials speak throughout the week. The earnings calendar is winding down, but some important reports remain. On Wednesday, Nvidia, Salesforce, CrowdStrike, HP, and J.M. Smucker all report. Aside from Nvidia's data, analysts will be listening to hear what CrowdStrike management has to say about the global software glitch last month and the impact on business. On Thursday, reports come from Dell, Marvell Technology, Best Buy, Lululemon, Gap, and Ulta Beauty. Earnings are coming in 12.7% higher this quarter than a year ago. Some 95% of S&P 500 companies have reported so far. Financials and Healthcare are the leading sectors, both up 20% for the quarter compared to the same quarter last year. Materials are on the other end, down 6%. Expectations were for 8%-12% earnings growth for 2Q, so corporate America has again surpassed the initial forecast. Mortgage rates fell three basis points (bps) to 6.46% for the average 30-year fixed-rate mortgage. Gas pri