We’re in the thick of first-quarter earnings season: 142 S&P 500 (.SPX) components release results this week, followed by a similar number next week. Big Tech companies are among the highlights. Alphabet (GOOGL) reports this Tuesday, Microsoft (MSFT) and Facebook (FB) go on Wednesday, and Apple (AAPL) and Amazon.com (AMZN) follow on Thursday.
Several major industrial firms also report: Caterpillar (CAT) and 3M (MMM) on Tuesday; Boeing (BA), General Electric (GE), and Northrop Grumman (NOC) on Wednesday; Dow on Thursday; and Honeywell International (HON) on Friday. Car makers Ford Motor (F) and Tesla (TSLA) report on Tuesday and Wednesday, respectively.
Health-care sector earnings reports this week include Merck (MRK) and Pfizer (PFE) on Tuesday, Anthem (ANTM) and Humana (HUM) on Wednesday, Cigna (CI) on Thursday, and AbbVie (ABBV) on Friday. Other highlights will be results from Starbucks (SBUX), AMD (AMD), and United Parcel Service (UPS) on Tuesday; Mastercard (MA), Qualcomm (QCOM), and eBay (EBAY) on Wednesday; Twitter (TWTR), Visa (V), and Comcast (CMCSA) on Thursday; and Exxon Mobil (XOM), Chevron (CVX), and Charter Communications (CHTR) on Friday.
The main event on the economic-data calendar this week will be a first look at how the U.S. economy held up in the early stages of the coronavirus outbreak and stay-at-home orders. The Bureau of Economic Analysis releases its initial estimate of first-quarter U.S. gross domestic product on Wednesday. Economists forecast an annualized 4% contraction, compared with a 2.1% growth rate in the fourth quarter of 2019.
Other economic data out this week includes the Conference Board’s Consumer Confidence Index for April on Tuesday, the BEA’s personal income and spending figures for March on Thursday, and the Institute for Supply Management’s Manufacturing Purchasing Managers’ Index for April on Friday.
The Federal Open Market Committee will announce a monetary-policy decision on Wednesday. With its benchmark interest rate near zero and multiple lending and bond-buying programs worth trillions of dollars already in place, there’s unlikely to be major new action this week. But Chairman Jerome Powell’s press conference will get plenty of attention for insight into how central bankers view the state of the U.S. economy and what they expect the recovery to look like. Powell will also face questions about how long he expects the Fed’s numerous programs and lending facilities to remain in place.
CMS Energy (CMS) and NXP (NXPI) Semiconductors report quarterly results.
The Federal Reserve Bank of Dallas releases its Texas Manufacturing Outlook Survey for April. Economists forecast a minus 67.5 reading, edging up from March’s minus 70 figure. The March data were the lowest for the index since the survey began in 2004.
3M, Advanced Micro Devices, Alphabet, Caterpillar, Ford Motor, Merck, Mondelez International (MDLZ), PepsiCo (PEP), Pfizer, Starbucks, and United Parcel Service report earnings.
The Bank of Japan announces its monetary-policy decision. The central bank is expected to keep its key short-term interest rate at negative 0.1%
The Conference Board releases its Consumer Confidence Index for April. Consensus estimates are for an 80 reading, a precipitous decline from March’s 120 figure. The index was last below 80 in early 2014.
S&P CoreLogic reports its Case-Shiller 20-City Home Price Index for February. Expectations are for 3% year-over-year rise in home prices, similar to January’s gain.
The Bureau of Economic Analysis reports its initial estimate of GDP for the first quarter. Economists forecast an annualized 4% contraction, compared with a 2.1% growth rate in the fourth quarter of 2019.
Anthem, Automatic Data Processing (ADP), Boeing, CME Group (CME), Facebook, General Electric, Mastercard, Microsoft, Northrop Grumman, Tesla, and Yum! Brands (YUM) report quarterly results.
The Federal Open Market Committee announces its monetary-policy decision. The central bank recently lowered the federal-funds rate to near zero and has committed trillions of dollars, through loan guarantees as well as corporate and muni debt purchases, to backstop the economy.
The National Association of Realtors releases its Pending Home Sales Index for March. Economists forecast a 7.5% decline, after a 2.4% gain in February.
Altria Group (MO), Amazon.com, Apple, Comcast, ConocoPhillips (COP), Gilead Sciences (GILD), Intercontinental Exchange (ICE), Kraft Heinz (KHC), McDonald’s (MCD), Twitter, and Visa report earnings.
The BEA reports personal income and spending for March. Consensus estimates are for a 1.4% decline for income and a 5.3% plummet for spending. This compares with rises of 0.6% and 0.2% in February respectively.
AbbVie, Charter Communications (CHTR), Cboe Global Markets (CBOE), Chevron, Colgate-Palmolive (CL), Estée Lauder (EL), Exxon Mobil , Honeywell International, and Phillips 66 (PSX) hold conference calls to discuss quarterly results.
The Institute for Supply Management releases its Manufacturing Purchasing Managers’ Index for April. Expectations are for a 36.1 reading, down from March’s 49.1 figure.
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