Investors Eye Corporate Earnings and Political Developments in July

As July progresses, investors are primarily focused on the upcoming corporate earnings reports, with a keen eye on major companies and their quarterly results. Netflix (NFLX) will kick off the Big Tech earnings season by releasing its quarterly results after the market closes on Thursday. This report is highly anticipated as it will provide insights into the streaming giant's performance and future outlook.

In the semiconductor sector, results from ASML (ASML) and Taiwan Semiconductor Manufacturing Company (TSM) will be closely watched. ASML, the leading manufacturer of lithography machines, and TSMC, the world's largest chip manufacturer, are set to report their earnings on Wednesday and Thursday, respectively. Given the ongoing AI trade prominence on Wall Street, these reports are expected to significantly impact investor sentiment.

Financial sector earnings will also draw attention, with Goldman Sachs (GS), Morgan Stanley (MS), and Bank of America (BAC) set to conclude the reporting from Wall Street's major banks. Additionally, Dow members Johnson & Johnson (JNJ), American Express (AXP), UnitedHealth (UNH), and Travelers (TRV) are scheduled to release their quarterly results.

On the political front, the recent assassination attempt on former President Donald Trump at a rally in Pennsylvania has stirred reactions across the business community. Leaders condemned the violence and praised Trump's resilience. The incident comes ahead of the Republican National Convention in Milwaukee, where Trump is expected to be formally named the Republican nominee for president.

Economic data for the month will be relatively sparse, with Tuesday's retail sales report for June being a key highlight. After a surprising slowdown in May's spending, investors and Federal Reserve observers will be analyzing the results for further signs of consumer weakness. Oxford Economics forecasts a 0.4% decline in retail sales for June, primarily driven by lower gas prices. However, the firm anticipates a solid 0.3% increase in underlying control group sales, indicating a robust rise in real consumption for the second quarter.

Despite recent market volatility triggered by Thursday's inflation data, which saw a shift from high-performing stocks to small caps, the week ended on a positive note with a broad market rally on Friday. This positive momentum sent stocks into the weekend with another weekly gain.

As the earnings season unfolds and political events play out, investors will remain vigilant, seeking to navigate the market's complexities and capitalize on emerging opportunities.