3 Stocks Investors Watch After July PCE Surprise

The Personal Consumption Expenditures index increased 3.7% year over year in July, matching June and edging above the 3.6% economist forecast. Core PCE rose 3.3%. July data also showed personal income up 0.4%, disposable income up 0.5% and consumer spending up 0.2%.

Market strategists note the report leaves the timing of Federal Reserve rate cuts uncertain. Higher-for-longer rates have coincided with stronger interest income for lenders and with particular performance patterns across retail and energy sectors.

JPMorgan Chase reported net interest income of $25.5 billion in the first quarter, a 9% increase from a year earlier. In the second quarter the bank posted $7.70 in earnings per share on $57.35 billion in revenue and reported a record quarterly profit in July. Banks generate interest income from loans and other interest-bearing assets, and recent results show elevated net interest income for large lenders.

Dollar General raised its full-year earnings guidance and announced a new share-repurchase plan; the stock rose about 6% after the announcement. The retailer focuses on low-priced everyday merchandise and serves shoppers seeking value. July’s PCE and the modest monthly rise in consumer spending indicate households are spending while remaining price-conscious.

ExxonMobil reported $23.6 billion in operating cash flow and $17.2 billion in free cash flow in the second quarter of 2026, and it returned $9.4 billion to shareholders through dividends and buybacks in the period. The company reported production growth in Guyana and cited its integrated operations alongside those cash-flow figures. Exxon traded around $158.19 at the Aug. 26 close, below a 52-week high of $176.41.

The Bureau of Economic Analysis produces the PCE index, which is the Federal Reserve’s preferred inflation gauge. PCE readings factor into monetary policy discussions and market expectations for future interest rates.