Week Ahead on Wall Street: Taking Stock of AI’s Disruption

Estimated reading time: 6 minutes

This week the big banks pass the earnings-season baton to the industries at the heart and soul of the bull market — AI and technology.

At a Glance

• The news: While major tech companies like Alphabet lead the charge, roughly 17% of S&P 500 companies will report earnings results this week, accounting for just over a quarter of the index’s total market capitalization. But rather than get bogged down in the minutiae of specific line items, Wall Street may instead focus on what results mean for their broader industries.
• The context: In this era of AI disruption, investors will focus on whether AI and tech companies can validate and justify their massive capital expenditure expectations. Amid a gangbusters 2026 for their stocks, the last few weeks have been a slog. 

Top of mind will be Alphabet (GOOGL), given its importance in this era of AI disruption. Are the hundreds of billions it’s pouring into AI development being efficiently monetized, or will some of the capex need to be whittled down? And if capex plans get revised up even more, investors will want to know how the company plans to pay for it, especially in light of its recent $85 billion equity offering.

Beyond Alphabet, the tech narrative splinters in a few directions. Tesla (TSLA) will not only provide an update on the auto giant’s positioning within the global EV and autonomous driving markets, but also offer a pulse check on consumer appetite for big-ticket purchases in general.

On the enterprise software front, IBM’s (IBM) recent pre-announcement of revenue and earnings misses — driven by customers redirecting budgets toward AI hardware — has the market on edge. The question here is pretty simple: Is IBM’s situation a one-off or are businesses actually being disrupted by AI?

It’s important to remember that the AI boom isn’t just about chips or software. Results from infrastructure and power players such as Digital Realty Trust (DLR) and GE Vernova (GEV) should provide color on the world of data centers and energy grids. And the reescalation of conflict with Iran will also add attention to defense companies like Northrop Grumman (NOC), RTX (RTX) and Lockheed Martin (LMT).

On the Docket

Monday

• 10:00am ET | June Leading Economic Index: This is an index composed of various economic indicators that have historically led changes in the broader economy.
• Earnings
  • Large & Mid-Caps: Steel Dynamics (STLD), W R Berkley (WRB), Domino’s Pizza (DPZ)

Tuesday

• 8:15am ET | ADP Weekly Employment Change: This survey offers insight into weekly private sector employment trends. 
• 8:30am ET | July Philadelphia Fed Services Activity: The Philadelphia Fed surveys executives in the region’s services industry on business conditions and their outlook.
• Earnings
  • Large & Mid-Caps: Charles Schwab (SCHW), Interactive Brokers Group (IBKR), Danaher (DHR), Chubb (CB), Capital One Financial (COF), Marsh & McLennan Companies (MRSH), 3M (MMM), Northrop Grumman (NOC), General Motors (GM), MSCI (MSCI), DR Horton (DHI), EQT (EQT), Halliburton (HAL), KeyCorp (KEY), Synchrony Financial (SYF), Equifax (EFX), Genuine Parts (GPC), Hasbro (HAS)

Wednesday

• 7:00am ET | Weekly Mortgage Applications: Mortgage activity gives insight on demand in the housing market.
• Earnings
  • Mega-Caps: Alphabet (GOOGL), Tesla (TSLA), Philip Morris International (PM), GE Vernova (GEV), Texas Instruments (TXN)
  • Large & Mid-Caps: International Business Machines (IBM), AT&T (T), ServiceNow (NOW), CSX (CSX), Moody’s (MCO), CME Group (CME), Kinder Morgan (KMI), TE Connectivity (TEL), Westinghouse Air Brake Technologies (WAB), Northern Trust (NTRS), Crown Castle International (CCI), Raymond James Financial (RJF), Las Vegas Sands (LVS), Teledyne Technologies (TDY), Otis Worldwide (OTIS), AvalonBay Communities (AVB), Equity Residential (EQR), PulteGroup (PHM), Southwest Airlines (LUV), Rollins (ROL), Packaging of America (PKG), Globe Life (GL)

Thursday

• 8:30am ET | Weekly Jobless Claims: This high-frequency labor market data gives insight into initial and continuing filings for unemployment benefits.
• 8:30am ET | June Chicago Fed National Activity Index: This monthly index incorporates 85 indicators from four categories: production and income; employment, unemployment, and hours; personal consumption and housing; and sales, orders, and inventories.  
• 11:00am ET | July Kansas City Fed Manufacturing Activity: The Kansas City Fed surveys manufacturing executives in the region on business conditions and their outlook.
• Earnings
  • Mega-Caps: Intel (INTC), RTX (RTX), T-Mobile US (TMUS), Thermo Fisher Scientific (TMO)
  • Large & Mid-Caps: Union Pacific (UNP), Blackstone Group LP (BX), Lockheed Martin (LMT), Newmont Mining (NEM), Comcast (CMCSA), Freeport-McMoRan (FCX), Norfolk Southern (NSC), Honeywell International (HON), United Rentals (URI), Digital Realty Trust (DLR), Nasdaq (NDAQ), Edwards Lifesciences (EW), Ameriprise Financial (AMP), PG&E (PCG), Huntington Bancshares (HBAN), Roper Technologies (ROP), Dover (DOV), West Pharmaceutical Services (WST), VeriSign (VRSN), Quest Diagnostics (DGX), Dow Inc (DOW), Snap-on (SNA), NVR (NVR), Tractor Supply Company (TSCO), Deckers Outdoor (DECK), Allegion (ALLE)

Friday

• 9:45am ET | July S&P Global US PMIs: These indexes track how purchasing managers across different industries feel about the business environment. 
• 10:00am ET | June New Home Sales: While new homes are a minority of overall home sales, they tend to be more cyclical and give insight into developing trends.  
• 11:00am ET | July Kansas City Fed Services Activity: The Kansas City Fed surveys executives in the region’s services industry on business conditions and their outlook.
• Earnings
  • Mega-Caps: American Express (AXP)
  • Large & Mid-Caps: NextEra Energy (NEE), Verizon (VZ), HCA Healthcare (HCA), Schlumberger (SLB), Comfort Systems USA (FIX), Hartford Financial Services Group (HIG), Charter Communications (CHTR)

Note: Companies with at least $200 billion in market capitalization are classified as “Mega-Caps,” while others are shown in the “Large & Mid-Caps” sections.

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