What to Expect in Markets This Week

This week will be bookended with new beginnings: SpaceX is set to join the Nasdaq 100 index, and another quarterly earnings season will begin with results from Pepsi and Delta. Elon Musk's space exploration, communication and AI company is slated to join the Nasdaq 100—a selection of companies that doubles as a shorthand for tech stocks—before the opening bell on Tuesday. Inclusion in the Nasdaq 100 will broaden the reach of SpaceX, given that a number of funds are set up to mirror major indexes. SpaceX is already a member of the Russell 1000 and some S&P Dow Jones Indices, though not the S&P 500. SpaceX shares' early days have been marked by volatility. Its shares finished last week at $162, up from where they first opened on June 12; it has risen past $225, briefly making SpaceX more valuable than Amazon, and dipped as low as $147. Analysts don't expect the stock to become more stable in the near future.

Investors will get a look at how uncertainty—and volatile oil prices—have impacted consumers, with PepsiCo and Delta Airlines set to report their latest quarterly results this week. Pepsi announced price cuts this winter as food companies said geopolitical tensions and inflation were prompting consumers to bypass full-price items. Delta described demand as “ really great” in March, though the carrier cut capacity and raised prices as the war wore on.

The major stock indexes had an upbeat week: all three ended the second quarter on Tuesday with double-digit gains, and all three finished the holiday-shortened week in the green after an end-of-week session that saw the Nasdaq fall, the Dow rise and the S&P 500 end about flat. Data released Thursday depicted the labor market as softer than expected, alleviating some concerns that the ...