The Week Ahead: Fed Minutes and Early Earnings Take Center Stage

Fed minutes headline the week as investors look for clues on the outlook for interest rates. PepsiCo, Delta Air Lines and Levi Strauss lead the opening wave of second-quarter earnings. Major U.S. indices remain above their 52-week moving averages with resistance levels in focus.

U.S. equities extended their advance last week, with all three major indices finishing near record highs. The Dow Jones Industrial Average gained 1.97% to close at 52,900.08, the Nasdaq Composite advanced 2.12% to 25,832.67, and the S&P 500 added 1.76% to finish at 7,483.24. All three indices continue to trade above their rising 52-week moving averages, confirming that the longer-term uptrend remains intact.

The primary focus this week shifts to the Federal Reserve. Investors will closely examine the minutes from the June FOMC meeting for additional insight into policymakers’ views on inflation, interest rates and the economic outlook following the Committee’s decision to leave rates unchanged.

The economic calendar is relatively light outside of the Fed minutes, while second-quarter earnings begin to gather pace. Reports from PepsiCo, Delta Air Lines, Levi Strauss and several other companies will provide an early read on corporate performance.