What to Watch in the Day Ahead - Tuesday, July 15

The earnings season kicks off with major banks expected to report stronger profits, driven by buoyant trading and a modest rebound in investment banking. JPMorgan Chase is expected to post higher second-quarter profit, as elevated market volatility boosts its trading division.

On the U.S. economic front, the Labor Department’s Bureau of Labor Statistics is scheduled to report that consumer price index (CPI) likely rose 0.3% in June, after rising 0.1% in the month before. Annually, CPI is estimated to have increased 2.7% from 2.4% recorded in the prior month. Excluding the volatile food and energy components, the CPI likely rose to 0.3% in June, after increasing 0.1% in the previous month. On a year-over-year basis, so-called core CPI is projected to rise 3% in June, following a 2.8% gain in May.

Citigroup is slated to post a higher second-quarter profit as its traders capitalized on volatility triggered by shifting tariff policies and global geopolitical turmoil. Analyst and investor focus will likely be on the bank's progress in addressing long-standing regulatory issues, and progress in implementing CEO Jane Fraser's ambitious transformation plan.

Bank of New York is scheduled to report higher second-quarter profit. Analysts and investors will focus on executive comments about the bank's appetite for dealmaking, the macroeconomic outlook and the recent rally in the markets. However, Wells Fargo is expected to report a drop in profit for the second-quarter as the bank's income from interest payments dip. The bank is under scrutiny after shedding its asset cap in the quarter, which the Federal Reserve had imposed in 2018.

Asset management giant BlackRock is expected to report a rise in second-quarter profit, as the world's largest asset manager benefits from higher fees amid a rallying equities market. Additionally, State Street is expected to report a larger second-quarter profit as it earns higher fees from servicing client assets amid a bumper quarter for equities.

A host of Federal Reserve policymakers are scheduled to attend various events. Fed Vice Chair for Supervision Michelle Bowman is expected to give welcome remarks before the "Unleashing a Financially Inclusive Future" conference hosted by the Federal Reserve in Washington. (0915 ET/1315 GMT) At the same event, Fed Board Governor Michael Barr is also due to speak (1245 ET/1645 GMT). Meanwhile, Dallas Fed President Lorie Logan is due to give opening remarks before an event of the World Affairs Council of San Antonio in Texas (1945 ET/2345 GMT). Additionally, Boston Fed President Susan Collins is slated to speak on "A View from the Federal Reserve" before the National Association for Business Economics 22nd Annual Economic Measurement Seminar in Washington. (1445 ET/1845 GMT)

Albertsons is expected to post a rise in first-quarter revenue, helped by steady demand for essentials including groceries, as consumers cut back on discretionary purchases amid rising economic uncertainty. Investors will look out for comments on impact of unpredictable trade policies on demand, impact of input costs as well as annual forecasts.

Trucking firm J.B. Hunt is expected to report a marginal year-over-year fall in quarterly revenue when it reports its second-quarter results. While analysts anticipate some cost-side improvements, overall demand remained soft throughout the quarter.

Omnicom is expected to report quarterly revenue growth for the second-quarter driven by demand for its marketing business.

Statistics Canada is expected to release the country's annual inflation figures, which is likely to have risen 1.9% in June, following a 1.7% rise in the prior month. On a monthly basis, inflation is likely to climb 0.1%, after rising 0.6% in the previous month. CPI median, which shows the median inflation rate across CPI components, is projected to rise 3% in June, matching prior month’s reading. Additionally, CPI trim, which excludes upside and downside outliers, is expected to increase 3% last month. Separately, the agency is scheduled to report that factory sales likely fell 1.3% in May, following a 2.8% decline in April. Meanwhile, the Canadian Mortgage and Housing Corporation is expected to report that seasonally adjusted annualized rate of housing starts likely decreased to 259,000 units in June from a revised 279,500 units in May.