Disney, UPS earnings, consumer inflation, Cadillac’s new Escalade in week ahead

A slew of quarterly earnings will hit Wall Street this week, as well as two key reports on inflation, as investors continue to wrestle with Fitch Ratings’ downgrade of U.S. credit worthiness last week and the potential fallout.

All three of the major indexes fell last week over 1%.

The tech-heavy Nasdaq Composite dropped the most at 3% due to weakness in shares of Apple after forecasting a slowdown in revenue growth next quarter.

BUSINESSES LOOK TO SELF-REGULATE THE USE OF AI IN HIRING

Tyson Foods reports 

Consumer credit data in the U.S. will be released to start the week’s economic reporting, while quarterly earnings from Tyson Foods, Lucid Motors, Beyond Meat and Paramount Global kick off earnings.

READ ON THE FOX BUSINESS APP

SAUDI ARABIA TO EXTEND OIL PRODUCTION CUTS THROUGH SEPTEMBER, SIGNALING POTENTIAL RISE IN US GAS PRICES

Tyson foods

A package of Tyson Foods Inc. crispy chicken strips arranged in Dobbs Ferry, N.Y., Feb. 6, 2021.

In May, Tyson Foods announced the company would shut down two of its poultry plants and lay off nearly 1,700 workers as it tries to improve its chicken operations that produce about one-fifth of the U.S. supply.

NYC OUTDOOR DINING PERMANENT, BUT RESTAURANTS WILL BE FORCED TO REMOVE STRUCTURES IN WINTER

Duke Energy, Rivian Automotive, Lyft and UPS will report results Tuesday.

For the delivery giant, it will be the first quarter following the $30 billion contract inked with the Teamsters last month.

UPS AND TEAMSTERS STRIKE $30 BILLION CONTRACT

AMAZON-RIVIAN DEAL SENDS SHARES TO NEW HIGH

Meanwhile, Lyft reported a disappointing outlook in May and announced last month it would shutter its car rental business and lay off about 60 workers. Shares of rival Uber could also be active.

LYFT WILL IMPLEMENT MORE JOB CUTS

Disney CEO Bob Iger in the spotlight

The Walt Disney Company will showcase Wednesday’s list of quarterly earnings, alongside Honda and Lordstown Motors.

DESANTIS-BACKED BOARD ENDS DISNEY DISTRICT’S DEI AND RACE-BASED PROGRAMS: ‘ILLEGAL’ AND ‘UNAMERICAN’

Disney has been rocked in recent months by executive turnover, declining theme park attendance and legal battles with Florida Gov. Ron DeSantis. Amid the turmoil, CEO Bob Iger is under pressure to formalize a succession plan.

Bob Iger

Bob Iger, CEO of The Walt Disney Co.

Iger inked a two-year extension with Disney in early July, ensuring he held the chief executive position at the California-based entertainment giant until the end of 2026.

Disney shares are little changed this year compared to the S&P 500’s 16.6% gain.

Also on Wednesday, economic reporting will include data on gasoline inventories, crude oil imports and supply.

Over the last three months, the price of oil is up nearly 16% and is now roughly 2.72% higher on the year.

And GM’s Cadillac is expected to unveil a new version of its electric Escalade.

GM Escalade

The 2023 Cadillac Escalade-V cruising down a highway in Phoenix, Ariz.

Inflation Check

The consumer price index (CPI) for July is expected to show inflation continues to moderate. Economists expect a 3.1% rise down from June’s 3% increase, while core inflation is expected to hold at 4.8%. Both levels remain above the Federal Reserve’s 2% mandate.

ECONOMY ADDS 187,000 JOBS IN JULY, A SIGN THE FED’S RATE HIKES ARE WORKING

In earnings, China’s Alibaba is set to report, along with Ralph Lauren, a measure of luxury spending.

More inflation data 

The producer price index (PPI) is expected to show a mixed bag. Annually, inflation is seen rising 0.7% above the prior month’s 0.1%, while core inflation is seen easing to 2.1% vs. 2.4%.

Leave a Comment