Week ahead: Fed meets, tech profits, Robinhood IPO

We get high-tech earnings, IPOs, a Fed meeting, a comprehensive update on the economy - all in one week - it’s enough to make your head spin. The business world expands and collides in the Reuters Business Calendar for the week of July 26th.

1. Will the Fed act on inflation?

The Federal Reserve is still the deciding factor in all that’s going on - on Wall Street and Main Street. Federal Reserve Chairman Jerome Powell has pledged to keep rates low for the foreseeable future and maintain the Fed's bond-buying program.

But with inflation hitting rates not seen in decades – calls are growing louder for the Fed to start removing some of the extra help it’s giving to the economy.

Investors will be hanging on the Fed chief's every word, when the Fed wraps up its two-day meeting on Wednesday, and Powell heads to the podium.

2. How strong is the economy?

Right after that we’ll get an official read on just how strong the U.S. economic rebound is.

The first look at second-quarter gross domestic product, or GDP, is released on Thursday.

Economists polled by Reuters are looking for annualized economic growth of 8.2 percent. That would be the fastest growth rate in decades.

Of course it’s fair to remind you that the comparisons are quite easy compared to last year when we were in the beginnings of the health crisis.

3. Something to get your FANGS into

Investors will also get to see and hear how the economy is doing by way of corporate results.

Tesla kicks things off on Monday. Microsoft reports on Tuesday; so does Apple and Alphabet, the parent of Google.

On Wednesday we’ll get quarterly numbers from Facebook…followed up by Amazon on Thursday.

George Ball, CEO, of Sanders Morris Harris thinks the high-flying tech names that have pushed the market higher, commonly known as the FANGS, are simply too pricey at current levels.

"I wouldn't be buying the FANG or the FANG-pluses because I think if the bull market is long in the tooth, those stocks are great companies, marvelous earnings, they will grow, but they're priced as if they'll grow to infinity forever. And that doesn't happen."

4. Robinhood debuts on the stock market

If all that wasn't going to be enough...

It’s going to be a blockbuster week for stock market debuts.

Robinhood, the controversial trading app, will have one of the most highly anticipated initial public offerings of the year.

The first trade happens on Thursday.

Robinhood is aiming for a valuation of up to $35 billion in the IPO.

More than 55 million shares will be up for grabs.

Some of that is set aside for the small investors who use the Robinhood app.

Also on the docket – foreign language app Duolingo starts trading on Wednesday.

5. A double blockbuster weekend

Finally, here’s something we’ve rarely seen since movie theaters reopened… a battle of the movie stars of sorts.

Not one – but two Hollywood flicks will debut on Friday, July 30th.

On one side, you have the return of Matt Damon in “Stillwater”, distributed by Focus Films, a unit of Universal Pictures.

And on the lighter side, Dwayne "The Rock" Johnson and Emily Blunt star in Walt Disney’s “Jungle Cruise” based on a theme park ride.

As has been the recent standard with Disney, you can also catch "Jungle Cruise" on Disney+ for an additional fee.