Week Ending May 6, 2023: $173.57 +$3.89 +2.24%
May 5, 2023 12:34:31 GMT -8
CdnPhoto and 4aapl like this
Post by Dave on May 5, 2023 12:34:31 GMT -8
Wow, what a great way to end the week.
What to Expect in the Markets Next Week
Events Calendar:
Monday, May 8
PayPal Holdings (PYPL), McKesson Corp. (MCK), KKR & Co. (KKR), Suncor Energy (SU), Devon Energy Corp. (DVN), BioNTech (BNTX), Tyson Foods (TSN), and Palantir Technologies Inc. (PLTR) report earnings
Wholesale Inventories (Mar)
Consumer Inflation Expectations (Apr)
Tuesday, May 9
Duke Energy Corp. (DUK), Airbnb (ABNB), Air Products and Chemicals Inc. (APD), Occidental Petroleum (OXY), Transdigm Group Inc. (TDG), Alcon Inc. (ALC), Apollo Global Management (APO), Electronic Arts (EA), GlobalFoundries (GFS), Coupang (CPNG), Fox Corporation (FOXA), Wynn Resorts (WYNN), and Rivian Automotive (RIVN) report earnings
NFIB Business Optimism Index (Apr)
IBD/TIPP Economic Optimism Index (May)
Wednesday, May 10
The Walt Disney Company (DIS), Toyota Motor Corp. (TM), Takeda Pharmaceutical Company (TAK), Manulife Financial Corp. (MFC), Nutrien Ltd. (NTR), Li Auto (LI), Roblox Corporation (RBLX), First Citizens BancShares (FCNCA), and U-Haul Holding Company (UHAL) report earnings
Consumer Price Index (CPI) Inflation (Apr)
Thursday, May 11
JD.com (JD), Brookfield Corporation (BN), Sun Life Financial (SLF), Telefonica (TEF), PerkinElmer (PKI), News Corporation (NWS), and U.S. Foods Holding Corp. (USFD) report earnings
Producer Price Index (PPI) Inflation (Apr)
Bank of England (BoE) Interest Rate Decision
Friday, May 12
Sumitomo Mitsui Financial Group (SMFG), Honda Motor Company (HMC), Mizuho Financial Group (MFG), and Spectrum Brands Holdings (SPB) report earnings
University of Michigan Consumer Sentiment Index - Preliminary Reading (May)
U.K. Gross Domestic Product (GDP) (Q1 2023)
Earnings Update
After a busy week of corporate earnings, next week could be more subdued. However, we can still expect earnings from a number of prominent companies, including PayPal, Airbnb, Disney, Electronic Arts, and carmakers Toyota and Honda, among others.
As of Friday, 85% of S&P 500 companies have reported earnings. Of these, 79% have reported earnings per share (EPS) above expectations, while 75% have exceeded revenue estimates, according to FactSet. So far, the blended earnings decline for S&P 500 companies—combining firms that have reported earnings with those yet to report—is 2.2%, which would mark the second straight quarterly decline in earnings. Among companies that generate more than 50% of their revenue in the U.S., earnings grew 2.7% on average, indicating that international sales were a headwind for S&P 500 companies in the first quarter.
April Inflation Readings
We’ll get the latest inflation readings next week with the April Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday. The CPI is projected to have climbed 0.4% last month after rising 0.1% in March. Year-over-year, prices were likely up 4.9%, at the slowest pace in two years, decelerating slightly from 5% in March. Core prices, which exclude volatile food and energy costs, likely rose 0.3% last month and were up 5.6% on an annual basis.
The PPI will follow on Thursday, tracking inflation from the standpoint of manufacturers and wholesalers. Producer prices are projected to have risen 0.3% last month, rebounding off an unexpected 0.5% decline in March. Year-over-year, they were likely up 2.4% at the slowest pace since January 2021, decelerating from 2.7% in March.
BoE Interest Rate Decision
Next Thursday, Bank of England (BoE) policymakers will hold their latest meeting on interest rates, one week after the U.S. Federal Reserve and European Central Bank (ECB) raised interest rates. BoE policymakers are expected to raise the key bank rate by 25 basis points to 4.5%, marking the 12th consecutive rate hike since early last year.
The U.K. is experiencing its highest inflation in four decades, currently at an annual rate of 10.1%, coupled with a stagnating economy. The latest GDP report, due on Friday, is projected to show growth of just 0.1% in the first quarter and stagnation on an annual basis.
What to Expect in the Markets Next Week
Events Calendar:
Monday, May 8
PayPal Holdings (PYPL), McKesson Corp. (MCK), KKR & Co. (KKR), Suncor Energy (SU), Devon Energy Corp. (DVN), BioNTech (BNTX), Tyson Foods (TSN), and Palantir Technologies Inc. (PLTR) report earnings
Wholesale Inventories (Mar)
Consumer Inflation Expectations (Apr)
Tuesday, May 9
Duke Energy Corp. (DUK), Airbnb (ABNB), Air Products and Chemicals Inc. (APD), Occidental Petroleum (OXY), Transdigm Group Inc. (TDG), Alcon Inc. (ALC), Apollo Global Management (APO), Electronic Arts (EA), GlobalFoundries (GFS), Coupang (CPNG), Fox Corporation (FOXA), Wynn Resorts (WYNN), and Rivian Automotive (RIVN) report earnings
NFIB Business Optimism Index (Apr)
IBD/TIPP Economic Optimism Index (May)
Wednesday, May 10
The Walt Disney Company (DIS), Toyota Motor Corp. (TM), Takeda Pharmaceutical Company (TAK), Manulife Financial Corp. (MFC), Nutrien Ltd. (NTR), Li Auto (LI), Roblox Corporation (RBLX), First Citizens BancShares (FCNCA), and U-Haul Holding Company (UHAL) report earnings
Consumer Price Index (CPI) Inflation (Apr)
Thursday, May 11
JD.com (JD), Brookfield Corporation (BN), Sun Life Financial (SLF), Telefonica (TEF), PerkinElmer (PKI), News Corporation (NWS), and U.S. Foods Holding Corp. (USFD) report earnings
Producer Price Index (PPI) Inflation (Apr)
Bank of England (BoE) Interest Rate Decision
Friday, May 12
Sumitomo Mitsui Financial Group (SMFG), Honda Motor Company (HMC), Mizuho Financial Group (MFG), and Spectrum Brands Holdings (SPB) report earnings
University of Michigan Consumer Sentiment Index - Preliminary Reading (May)
U.K. Gross Domestic Product (GDP) (Q1 2023)
Earnings Update
After a busy week of corporate earnings, next week could be more subdued. However, we can still expect earnings from a number of prominent companies, including PayPal, Airbnb, Disney, Electronic Arts, and carmakers Toyota and Honda, among others.
As of Friday, 85% of S&P 500 companies have reported earnings. Of these, 79% have reported earnings per share (EPS) above expectations, while 75% have exceeded revenue estimates, according to FactSet. So far, the blended earnings decline for S&P 500 companies—combining firms that have reported earnings with those yet to report—is 2.2%, which would mark the second straight quarterly decline in earnings. Among companies that generate more than 50% of their revenue in the U.S., earnings grew 2.7% on average, indicating that international sales were a headwind for S&P 500 companies in the first quarter.
April Inflation Readings
We’ll get the latest inflation readings next week with the April Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday. The CPI is projected to have climbed 0.4% last month after rising 0.1% in March. Year-over-year, prices were likely up 4.9%, at the slowest pace in two years, decelerating slightly from 5% in March. Core prices, which exclude volatile food and energy costs, likely rose 0.3% last month and were up 5.6% on an annual basis.
The PPI will follow on Thursday, tracking inflation from the standpoint of manufacturers and wholesalers. Producer prices are projected to have risen 0.3% last month, rebounding off an unexpected 0.5% decline in March. Year-over-year, they were likely up 2.4% at the slowest pace since January 2021, decelerating from 2.7% in March.
BoE Interest Rate Decision
Next Thursday, Bank of England (BoE) policymakers will hold their latest meeting on interest rates, one week after the U.S. Federal Reserve and European Central Bank (ECB) raised interest rates. BoE policymakers are expected to raise the key bank rate by 25 basis points to 4.5%, marking the 12th consecutive rate hike since early last year.
The U.K. is experiencing its highest inflation in four decades, currently at an annual rate of 10.1%, coupled with a stagnating economy. The latest GDP report, due on Friday, is projected to show growth of just 0.1% in the first quarter and stagnation on an annual basis.