This week: Consumer prices, Delta Air Lines and bank earnings

INFLATION CHECK

The government on Thursday issues a report on consumer prices in June.

Inflation eased in May for a second straight month, a hopeful sign that an acceleration of prices that occurred early this year may have passed. The trend could move the Federal Reserve closer to cutting its benchmark interest rate from a 23-year high. Analysts are expecting a small uptick in core prices this month.

Consumer price index, annual percent change, not seasonally adjusted:

Jan.: 3.1

Feb.: 3.2

March: 3.5

April: 3.4

May: 3.4

June (est.): 3.5

Source: FactSet

EYE ON THE SKY

Delta Air Lines reports its second-quarter earnings before the bell Thursday.

Wall Street expects another strong quarter from Atlanta-based Delta this quarter. Travel demand remains strong heading into summer, and analysts forecast Delta made $2.36 per share on $15.5 billion in sales. In April Delta said it expected another record-breaking quarter and that profit would exceed expectations.

BANK HEALTH

On Friday, several big U.S. banks report their latest financial results.

Last quarter, big U.S. banks warned of an “uncertain” year ahead after releasing mixed financial results for the first quarter in an environment of stubbornly high inflation and geopolitical clashes. JPMorgan reported a modest 6% rise in profits last quarter, while Wells Fargo and Citigroup saw profits decline. Analysts expect Wells' and Citi's earnings slightly improved versus the same quarter a year ago.