CPI data came in at or below expectations, leading to widespread green throughout the markets. A lack of bad news in the banking sector combined with better-than-expected economic data reports led the major US indices up between 1.25% and 1.75% week-over-week. This week, we’re bound to see some volatility in the market though. As always, banks kick off earnings season, so we’ll get to hear what some of the largest regional banks have to say about their standing given current events.
The main takeaway from this past week is that inflation is certainly on it’s way out. Even though there have been some considerable economic events in the past few weeks, inflation continues to decline, which bodes well for both markets and the American people. Now that we have had a few months worth of declining inflation, both investors and consumers are becoming more confident in both their own economic standing and the country’s economic standing. As of right now, it seems like all we have to do is patiently wait for inflation metrics to reach the Fed’s target level while the rate hikes do what they were designed to do.
Since we got CPI data out of the way last week, this week will be relatively quiet in terms of economic data releases. There will be some information on housing released throughout the week, including the home builder confidence index, housing starts, building permits, and existing home sales. However, there won’t be many other notable economic data releases.
We will, however, have a jam-packed week of earnings, with some incredibly important companies reporting their Q1 results, which we’ll discuss in the next section.
Although Q1 earnings season began last week, things really start to heat up this week, as we have some of the largest companies in the world reporting their earnings. Below, we’ve listed just a few of the countless giants reporting their earnings this week:
04/17 – The Charles Schwab Corporation (SCHW), State Street Corporation (STT), M&T Bank Corporation (MTB), J.B. Hunt Transport Services (JBHT),
04/18 – Johnson & Johnson (JNJ), Bank of America (BAC), Netflix (NFLX), Lockheed Martin Corporation (LMT), Prologis (PLD), Goldman Sachs Group (GS), Intuitive Surgical (ISRG), The Bank of New York Mellon (BK), United Airlines (UAL)
04/19 – Tesla (TSLA), ASML Holding (ASML), Abbott Laboratories (ABT), Morgan Stanley (MS), Elevance Health (ELV), International Business Machines Corporation (IBM), Lam Research Corporation (LRCX), Crown Castle Inc. (CCI), U.S. Bancorp (USB), Las Vegas Sands (LVS)
04/20 – Taiwan Semiconductor Manufacturing (TSM), Philip Morris International (PM), AT&T (T), Union Pacific (UNP), American Express Company (AXP), CSX Corporation (CSX), Blackstone Inc. (BX), Truist Financial Corporation (TFC), D.R. Horton (DHI)
04/21 – Procter & Gamble Company (PG), SAP SE (SAP)
All eyes will remain on the banks this week. Although we did hear some relieving commentary from JPM, that is the largest bank in the US and one of the largest banks in the world. So, it will be interesting to hear what some of the smaller banks have to say, as many of them have likely lost a sizeable amount of their deposits to the big four banks.
In addition to the banks, we’ve also got some crucial semiconductor companies reporting their earnings this week. We’ll hear from giants like TSM, ASML, and LRCX, three key players in the chip-making space. They will provide commentary and guidance that will undoubtedly move chip-makers like NVDA, AMD, and INTC.
We’ll also get to hear from some important tech companies, like TSLA and NFLX, which have been quite volatile around earnings as of the past few quarters. It’ll be interesting to hear what these giants have to say about how consumers are spending their money.
Lastly, we’ll also hear from some important logistics companies, like JBHT, UNP, and CSX. It’s important to pay attention to their commentary and guidance, as they play key roles in virtually every single industry within the United States!
Monitoring the market conditions this week.
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