Week ahead: US banking giants slated to report as earnings season kicks off

(Sharecast News) - The US earnings season will kick off next week, with banking behemoths Morgan Stanley, Citigroup and JPMorgan among those slated to report. Monday will mark a quiet start to the week in the UK, with a trading update due from Grafton.

Tuesday will bring full-year results from Watches of Switzerland and a trading update from recruiter Robert Walters.

Across the pond, earnings season will get into full swing with quarterly results from JPMorgan, Bank of America, Goldman Sachs, Citigroup and Wells Fargo.

On the macroeconomic calendar, Chinese trade figures for June are due, along with the US consumer price index for June.

On Wednesday, investors will eye trading updates from housebuilder Barratt Redrow and Hunting, as well as full-year results from Cohort. In the US, quarterly results from ASML, Johnson & Johnson, Morgan Stanley and BlackRock will be out.

Also on Wednesday, the latest policy announcement is due from the Bank of Canada, which is widely expected to keep rates on hold at 2.25%.

ING said: "We think the bar for a material hawkish turn by the Bank of Canada is high, and we don't expect surprises at next week's meeting. Unless oil rallies back to April-May levels, the inflation outlook remains too benign to hike, especially considering downside risks for jobs and activity related to USMCA [United States-Mexico-Canada Agreement] uncertainty.

"For now, some revamped BoC hawkish bets and some support for oil prices are helping CAD, which is outpacing USD this week. We still think USMCA-related risk premium can be added throughout 3Q and don't expect a return below 1.40 in the next couple of months."

Thursday will bring half-year results from Ocado and Crest Nicholson, full-year results from Mike Ashley's Frasers Group, and trading updates from Dunelm, Diploma, DFS and Wise.

As far as Ocado is concerned, AJ Bell analysts Danni Hewson and Dan Coatsworth said: "There has been quite the drama around Ocado's leadership team, with reports of boardroom tensions between the chair and the CEO, and investor unhappiness. With a longer-term succession plan now in motion and Tim Steiner committing to stay as the boss for the near-term, the attention shifts back to the day-to-day business.

"Ocado's half-year results cover the six months to 31 May 2026. Data from Kantar shows Ocado's UK grocery market share to have dipped from 2.2% to 2.1% during that period, which implies the business is quietly getting on with the job but isn't keeping its rivals awake at night.

"The tech side of Ocado hasn't taken the world by storm. It is now busy dealing with key customers scaling back operations, not growing them.

"The forthcoming results will give a snapshot of Ocado in the present day, but what matters more is how Ocado plans to become a stronger commercial entity longer term. Its growth plans have disappointed, so it needs bolder ideas."

In the US, quarterly numbers are due from United Airlines, UnitedHealth and streaming giant Netflix. On the macro front, UK GDP figures for May and US retail sales data for June will be released.

On Friday, luxury fashion brand Burberry will publish first-quarter results.