Here's why travel stocks are worth watching ahead of earnings release

As companies prepare to release earnings in the comings weeks, two traders have indicated that travel stocks could dominate earnings reports. Notably, 28% of the S&P 500 stocks are expected to report earnings this week.

Marriott report could tell what is happening with reopening stocks

Piper Sandler's Craig Johnson is keen on Marriott International (NASDAQ: MAR), which will report earnings on Tuesday before the market open.  Johnson told CNBC’s Trading Nation:

Johnson explained that ahead of the earnings release season, the stock is currently in a strong position. He added:

The options market implies a 4% plus or minus for the stock after the report, and this action could predict what is coming for similar reopening stocks. Johnson believes that Marriott will be the main stock in understanding how reopening and sentiment is shifting with travelers and delta variant.

Delta variant could impact travel, entertainment, and food industries

Despite earnings surpassing expectations in various measures, entertainment, food, and travel stocks are worth keeping an eye on amid growing concerns regarding the Delta variant, according to Federated Hermes's Steve Chiavarone.

Regarding the delta variant concerns, Chiavarone told CNBC that with CDC tightening mask guidance, it is likely that this will have an impact. He said:

Chiavarone could capitalize on pullbacks if the right opportunities come along. He added: