Here are the most important news items that investors need to start their trading day:
1. Big earnings week
More quarterly earnings reports will stream in this week as companies and investors try to get a grip on what happened in the second quarter and what could be coming next. Interest rates and inflation surged during the three-month period, and market watchers are looking for signs of how that affected consumer behavior and profits. Two big banks, Goldman Sachs and Bank of America, get things started this week with their premarket releases Monday morning. Here are the other major names set to report over the next few days:
- Monday: IBM (after the bell)
- Tuesday: Johnson & Johnson, Hasbro (before the bell); Netflix (after the bell)
- Wednesday: Tesla, United Airlines (after the bell)
- Thursday: American Airlines, Domino's Pizza, AT&T (before the bell); Snap, Mattel (after the bell)
- Friday: Twitter, Verizon (before the bell)
2. Stock futures looking up
Last week ended well for stocks, with the Dow rallying more than 650 points, but it was still a weak five-day frame overall. Markets look like they could start this week on a high note, with a big batch of earnings ahead. Volatility, though, is likely here to stay for a while longer as investors await the Fed's next move in its fight against inflation. "A more durable improvement in market sentiment is unlikely until there is a consistent decline both in headline and in core inflation readings to reassure investors that the threat of entrenched price rises is passing," Mark Haefele, chief investment officer at UBS Global Wealth Management, recently told clients.
3. Goldman Sachs, Bank of America report
Goldman Sachs' top and bottom lines beat Wall Street's expectations, driven by strong bond-trading results. Bank of America, meanwhile, posted better-than-anticipated revenue as it benefited from higher interest rates in the period. (BofA CEO Brian Moynihan is slated to be on CNBC's "Closing Bell" at 3 p.m. ET Monday.) Big banks started reporting last week, and the results so far have been a mixed bag: JPMorgan Chase posted a lower profit as it beefed up its reserves for bad loans, and a decline in investment banking revenue took a toll on Morgan Stanley. Citigroup's stock surged, however, as its results far surpassed expectations.
4. Delta rings up a big Boeing order
It's been more than a decade since Delta Air Lines placed such a big order with Boeing: the manufacturer said Monday that the carrier agreed to buy 100 of its 737 Max 10 planes, with an option to buy another 30. The Max 10 hasn't received government approval, although deliveries are slated to begin in 2025. Delta has favored Europe's Airbus over Boeing in recent years. Shares of both Delta and Boeing were higher in the premarket session following the announcement.
5. Musk fires back at Twitter
In case you missed it Friday, Elon Musk filed his first response to Twitter's lawsuit in Delaware Chancery Court. Musk's lawyers argued against a quick trial in the case, in which Twitter is attempting to force the Tesla and SpaceX CEO to follow through with his $44 billion deal to buy the social network after he said he was backing out of it. Twitter wants the trial to start as soon as September. Musk is aiming to push it into next year, arguing in a filing that "holding trial in February 2023 would balance the interests of the parties and the Court."
– CNBC's Patti Domm, Pippa Stevens, Hugh Son, Leslie Josephs and Lora Kolodny contributed to this report.