What will drive the markets this week?
On Friday, Wall Street closed lower due to mixed economic data that reinforced the possibility of another Federal Reserve interest rate hike, dampening investor enthusiasm after the launch of first-quarter reporting season with strong earnings from major U.S. banks.
In contrast, European shares reached their highest point in over a year and finished their fourth consecutive week in positive territory, buoyed by positive earnings from U.S. banks and hopes of the end of the Federal Reserve’s rate-hiking cycle. Similarly, Asia-Pacific markets mostly rose on Friday, following Wall Street’s lead, as the U.S. producer price index indicated further signs of decreasing inflation.
Next week, earnings season will be in full swing as several prominent companies, including Johnson & Johnson, Bank of America, Netflix, Lockheed Martin, Tesla, Morgan Stanley, IBM, American Express, and Procter & Gamble, among others, are scheduled to report earnings. Additionally, we can expect updates on the housing market, including the release of March housing starts, building permits, and existing home sales data, as well as the NAHB’s Housing Market Index for April. Inflation readings will also be available from the U.K., eurozone, and Japan, and China’s first-quarter GDP figures will be released.
On Monday, the U.S. Supreme Court will hear arguments in Slack vs. Pirani, a complex securities law case with potential implications for investors looking to sue companies over alleged misstatements or omissions in their registration statements during direct listings. Depending on the outcome, this case could impact the viability of direct listings as an attractive option for investors.
Events expected to move the markets this week
Monday, April 17
- HDFC Bank Limited (HDB), Charles Schwab (SCHW), State Street Corp. (STT), M&T Bank (MTB), J.B. Hunt Transport Services (JBHT), Equity Lifestyle Properties (ELS), and Pinnacle Financial Partners (PNFP) report earnings
- U.S. Supreme Court hears arguments in Slack v. Pirani
- NY Empire State Manufacturing Index (Apr)
- NAHB Housing Market Index (Apr)
- China GDP Growth Rate (Q1 2023)
Tuesday, April 18
- Johnson & Johnson (JNJ), Bank of America (BAC), Netflix (NFLX), Lockheed Martin (LMT), Prologis (PLD), Goldman Sachs (GS), Intuitive Surgical Inc. (ISRG), Bank of New York Mellon (BK), Ericsson (ERIC), and United Airlines (UAL) report earnings
- Housing Starts (Mar)
- Building Permits (Mar)
Wednesday, April 19
- Tesla (TSLA), Abbott Laboratories (ABT), Morgan Stanley (MS), IBM (IBM), Elevance Health (ELV), Lam Research Corp. (LRCX), Crown Castle Inc. (CCI), U.S. Bancorp (USB), Kinder Morgan (KMI), The Travelers Cos. (TRV), Baker Hughes Co. (BKR), Nasdaq Inc. (NDAQ), Discover Financial Services (DFS), and Equifax (EFX) report earnings
- U.K. Inflation Rate (Mar)
- Euro Area Inflation Rate (Mar)
Thursday, April 20
- Taiwan Semiconductor Manufacturing Company (TSM), Philip Morris International (PM), AT&T (T), Union Pacific Corp. (UNP), American Express Co. (AXP), Marsh & McLennan Cos. (MMC), CSX Corp. (CSX), Blackstone Inc. (BX), Truist Financial (TFC), Nucor Corporation (NUE), D.R. Horton Inc. (DHI), PPG Industries Inc. (PPG), Nokia Corp. (NOK), and Fifth Third Bancorp (FITB) report earnings
- Philadelphia Fed Manufacturing Index (Apr)
- CB Leading Economic Index (Mar)
- Existing Home Sales (Mar)
- Japan Inflation Rate (Mar)
Friday, April 21
- Procter & Gamble (PG), HCA Healthcare Inc. (HCA), Schlumberger (SLB), Freeport McMoran (FCX), Regional Financial Corp. (RF), and Autoliv (ALV) report earnings
- S&P Global Composite PMI - Flash Estimate (Apr)