Big earnings reports, homebuilding and the mood of consumers up front next week

U.S. corporations are set to release their quarterly earnings reports next week, potentially providing insight into how companies are navigating persistent inflation. Analysts anticipate a significant profit increase across the S&P 500 index, with energy and tech sectors projected to lead in growth. Major companies such as General Motors, Hasbro, and Netflix are scheduled to report their results, with Wall Street expecting varied profitability levels, particularly in relation to the artificial intelligence sector.

Homebuilder activity is expected to stabilize after two months of declining construction, although high mortgage rates and escalating construction costs continue to pose challenges. Concurrently, consumers are grappling with heightened economic anxiety due to inflation's impact on their budgets and future planning. Despite the gloomy sentiment, retail sales have shown slight growth, albeit slightly offset by increased gas prices that have trickled into other sectors, such as food costs.