Bank earnings and an array of economic data related to retail sales, inflation and housing highlight next week’s economic calendar.
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The most closely watched earnings report due Tuesday may be that of JPMorgan Chase (NYSE:JPM), which agreed last month to settle charges related to widespread mortgage fraud allegations for a whopping $13 billion. In total, New York-based JPMorgan, the largest U.S. bank by assets, has agreed to pay more than $20 billion in legal settlements in recent months, all of which will impact the company’s profit margins.
Also due next week are earnings reports from Wells Fargo (NYSE:WFC), also on Tuesday; Bank of America (NYSE:BAC) on Wednesday; Citigroup (NYSE:C) and Goldman Sachs (NYSE:GS) on Thursday; and Morgan Stanley (NYSE:MS) and Bank of New York Mellon (NYSE:BK) on Friday.
Financial services firms reporting next week include Charles Schwab (NYSE:SCHW), BlackRock (NYSE:BLK) and American Express (NYSE:AXP), all on Thursday.
Other bellwether firms due to report next week are tech giant Intel (NASDAQ:INTC) health care provider UnitedHealth (NYSE:UNH) and American Airlines (NYSE:AAL), all on Thursday.
Two inflation gauges -- the Producer Price Index (PPI) and the Consumer Price Index (CPI) -- will shed light respectively on wholesale prices paid to manufacturers and retail prices paid by consumers.
Inflation -- or lack of inflation -- is a growing concern of policy makers at the Federal Reserve. The inflation rate has hovered at 1% for months, fully half of the Fed’s target rate of 2%, stocking fears of deflation based on a lack of demand. The PPI is out Wednesday and the CPI out Thursday.
Other economic reports out next week include retail sales on Tuesday; and housing starts and industrial production both on Friday.
Also of interest are a handful of speeches by Federal Reserve members, who will undoubtedly be asked how Friday’s disappointing jobs report, which revealed a paltry 74,000 jobs were created last month, will impact Fed policy going forward.
Outgoing Fed Chair Ben Bernanke speaks on Thursday; Philadelphia Fed President Charles Plosser and Dallas Fed President Richard Fisher on Tuesday; and Atlanta Fed President Dennis Lockhart speaks on Wednesday.