The Week Ahead
August 10, 2026
Economic news
U.S. Consumer Price Index August 12th
The upcoming U.S. Consumer Price Index (CPI) report, scheduled for August 12th, 2026, will be closely monitored because it will provide the latest measure of inflation facing American households and businesses. Aimed at measuring the change in prices by urban consumers, CPI can have major influence over things like Federal Reserve Policy. Over the last few months, we’ve seen higher increases in the CPI; topping out in May1, and declining by a slight 0.4% in June2. The main culprit over the last 12 months for CPI increases has been Energy; not surprising given the conflicts overseas that have disrupted oil shipments.
U.S. Retail Sales August 14th
The July U.S. Retail Sales report, due for release on August 14th, will offer one of the clearest snapshots of consumer spending, the primary engine of the U.S. economy3. Because household consumption accounts for roughly two-thirds of U.S. economic activity, investors will be watching closely to see whether consumers continued to spend despite elevated interest rates and lingering inflation pressures. For reference, U.S. retail sales rose 0.2% in June4.
Stronger-than-expected retail sales would suggest that consumer demand remains resilient, supporting economic growth but potentially reinforcing concerns that inflation could persist and keep the Federal Reserve cautious about lowering interest rates. Conversely, weaker sales could signal that higher borrowing costs are beginning to weigh on household spending, strengthening the case for a more accommodative monetary policy later this year. As one of the final major economic releases before the Federal Reserve’s next policy deliberations, the July retail sales report is likely to shape expectations for both the economic outlook and the path of interest rates5.
Earnings Related Market Movers
Rocket Lab Corporation August 10th
Rocket Lab has made headlines with its newly penned government contracts for rockets and satellites as well as the launch of it’s new, mass-manufactured advanced satellite known as the Flatellite6. According to Rocketlab, the low-profile design of the satellites make it easier to “maximize” the amount of satellites that can be launched at one time7. From all of this, Rocket Lab reported record financials in the first quarter, with over $200 million in revenue and GAAP gross margins of 38.2%.
Scheduled to report Q2 2026 earnings after the market closes on Monday, August 10th, investors will be focused on whether the company can sustain its rapid growth in launch services and space systems while providing a meaningful update on the Neutron medium-lift rocket program. Another notable factor is the $2.2 billion in backlog orders which should keep the company moving as it works toward grander scale and profitability8. Compared to its market capitalization of $45 billion, the backlog is relatively low; a growing backlog may indicate increased demand for Rocket Lab products.
Applied Materials August 13th
Applied Materials, which supplies equipment for the manufacturing of semiconductors, has seen their shares gain 98% year-to-date. Revenue increased 11% in the fiscal second quarter, while net income increased 31% to $2.8 billion. Diluted earnings per share increased 33% year-over-year to $3.51 per share9. The catch, like with most tech and semiconductor stocks, is they are expensive. Applied Materials trades at 50 times trailing earnings and carries a market capitalization of $427 billion despite finishing fiscal 2025 with revenues of just $28.37 billion.
Fiscal third quarter results will likely need to be on par or better than what has been happening over the past few quarters if the stock trends are to continue. The company already saw a correction off highs in the $700 range and has been a bit volatile as we await its next earnings results.
Cisco Systems August 12th
Cisco Systems heads into next week’s earnings release up almost 60% year-to-date. Shares are trading near record highs after a remarkable run driven by artificial intelligence optimism and a rebound in its core networking business.
In its most recent fiscal quarter, the networking giant delivered record revenue of $15.8 billion, up 12% year-over-year, while GAAP earnings per share rose 37% to $0.85, comfortably beating its own guidance10. The standout figure, however, was AI infrastructure demand.
Cisco booked $5.3 billion of AI infrastructure orders year-to-date from hyperscale customers and raised its full-year target to $9 billion. Strong execution across its campus networking portfolio and accelerating product orders helped reinforce the view that Cisco is benefiting from more than just an AI spending boom.
For the stock to continue its upward momentum, investors will want evidence that this growth story remains intact. Another quarter of double-digit revenue and earnings growth would be welcomed, but the key focus will be on AI orders, enterprise networking demand and management’s forward guidance. Any indication that AI demand is moderating or that networking orders are losing momentum could put a damper on the stock’s strong rally.
1 https://tradingeconomics.com/united-states/consumer-price-index-cpi
2 https://www.bls.gov/cpi/
3 https://www.census.gov/retail/index.html?utm_source=chatgpt.com
4 https://tradingeconomics.com/united-states/retail-sales/news/567551
5 https://fred.stlouisfed.org/?utm_source=chatgpt.com
6 https://investors.rocketlabcorp.com/news-releases/news-release-details/rocket-lab-awarded-397-million-contract-build-and-launch
7 https://rocketlabcorp.com/updates/rocket-lab-announces-flatellite-a-new-satellite-designed-for-mass-manufacture-and-tailored-for-large-constellations/
8 https://investors.rocketlabcorp.com/news-releases/news-release-details/rocket-lab-announces-first-quarter-2026-financial-results
9 https://ir.appliedmaterials.com/static-files/c02d8253-7dc3-44d3-a9a9-29d07fb26f17
10 https://investor.cisco.com/news/news-details/2026/CISCO-REPORTS-THIRD-QUARTER-EARNINGS/default.aspx
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