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Takeaways
- The tariffs announced by President Donald Trump in the past week are set to go into effect on Wednesday. The markets have been on a wild ride since Trump’s announcement.
- China announced a retaliatory 34% tariff on goods imported from the U.S., expected to start Thursday.
- Thursday is the date for the release of the March Consumer Price Index, which is a key indicator of inflation.
- The first quarter earnings of the big banks will be announced on Friday. JPMorgan Chase and Wells Fargo are scheduled to report, while Delta Air Lines, CarMax, and Wells Fargo will announce earlier in this week.
- This week we can also expect to see the minutes from the Fed meeting as well as consumer sentiment, wholesale inventories and consumer credit data.
The March inflation data, as well as the earnings of Big Banks, are two major items on the economic calendar this week. Investors will be looking for signs about what to expect next after a chaotic last week.
Friday ended a run of two days that will be etched in the annals of history. The major US indices posted their biggest weekly losses since the Covid pandemic. Investors are now seeking clues for what might be next on prices and economic health following President Donald Trump’s tariff announcement, which is expected to take effect Wednesday. China announced retaliatory 34% tariffs scheduled to start on Thursday.
Investopedia launched its weekly market coverage on Sunday evening.
What else is on the agenda? Friday earnings reports from JPMorgan Chase (JPM), Wells Fargo (WFC), and BlackRock (BLK) are among the financial institutions on the calendar. Delta Air Lines (DAL) and CarMax (KMX) also are scheduled to deliver earnings earlier in the week.
The minutes of the Federal Reserve’s meeting are expected to give insight into the economic conditions and future path of interest rates. Data on consumer confidence and credit levels are closely monitored amid uncertainty about inflation and tariffs.
Monday, April 7
- Consumer credit (February).
- Levi Strauss (LEVI), Greenbrier (GBX), and Dave & Buster’s (PLAY) Earnings are due to be reported
Tuesday, April 8, 2019
- NFIB optimism index (March)
- RPM International (RPM) Cal-Maine Foods WD-40 (WDFC), Tilray Brands (TLRY), Mama’s Creations, Aehr Test Systems Earnings are due to be reported
Wednesday, April 9
- U.S. tariffs set to take effect
- Wholesale inventories (February)
- Minutes of March FOMC meeting
- Constellation Brands (STZ), Delta Air Lines, Simply Good Foods (SMPL). Earnings are due to be reported
Thursday, April 10
- Chinese tariffs are scheduled to go into effect
- Initial claims for unemployment (Week ending on April 5)
- Consumer Price Index (March).
- Chicago Fed President Austan Goolsbee will deliver remarks
- CarMax will be reporting earnings on the scheduled date.
Friday, April 11, 2019
- Producer Price Index for March
- Consumer sentiment – preliminary April
- John Williams, President of the New York Fed, is scheduled to make remarks
- JP Morgan Chase, Wells Fargo BlackRock, Bank of New York Mellon Earnings are due to be reported
Investors focus on inflation following tariffs announcement as they look for consumer data, Fed Remarks
Market participants will be watching the March inflation data as they keep an eye on the prices following President Trump’s expansive tariffs that are expected to go into effect on Wednesday and reignite recession fears.
Wells Fargo economists expected the Consumer Price Index in March to remain unchanged, with this data scheduled for release on Thursday. The sideways movement comes as inflation has edged lower recently, including a steeper-than-expected decrease in February’s CPI reading.
Federal Reserve officials have cited inflation as a major reason for maintaining interest rates at current levels. The minutes of the Fed’s March meeting, which are scheduled to be released on Wednesday, will give more insight into the current economic conditions and how they affect central bankers’ views on interest rates. Chicago Fed President Austan goolsbee, and New York Fed Presiden John Williams are both scheduled to make remarks this week.
Investors can expect to learn more about wholesale prices on Friday when the Producer Price Index (PPI), for March, is released. This information could potentially affect consumer prices in the future. Investors also expect data on wholesale inventory on Wednesday.
Consumer price expectations, which can influence inflation direction, will be included in the consumer sentiment data that will be released on Friday.
After Trump’s tariffs, the business and consumer community has been closely watching sentiment. Worries about price hikes and worsening economy have been raised by Trump’s policy. Tuesday is expected to be a day of small business sentiment, as recent surveys show that business owners have also started to lose hope in the economy.
Big Bank Reports Launch First-Quarter Earnings
Investors will get their first glimpse of first-quarter results when the Big Banks release a series scheduled reports later this month. Analysts are watching to see whether banks can continue driving growth in areas such investment banking and generating net interest income.
JPMorgan Chase’s earnings report is expected to be the first of a series of reports by financial firms on Friday. This comes after the world’s largest bank, measured by market capitalization, delivered a surprise jump in profits during the last quarter. JPMorgan increased its investment banking revenue, while also increasing its net interest income.
BlackRock’s announcement, scheduled for the same day, comes after the firm reported a record quarter in terms of assets under management. Investors are likely to be interested in updates on Blackrock’s project to fund $30 billion of AI infrastructure with Microsoft (MSFT), Nvidia, Elon Musk’s xAI (NVDA) and other companies.
Wells Fargo is scheduled to release its Friday report as its net profit topped analyst expectations, but the bank just barely missed its revenue target for last quarter.
Delta Air Lines will report on Wednesday, before Friday’s financial reports. The carrier has lowered their projections for the third quarter due to weakening travel demand in the face of economic uncertainty. The lowered forecast came after Delta reported an extremely profitable quarter in the prior quarter, thanks to higher sales of premium offerings.
Levi Strauss’ quarterly report, scheduled for release on Monday, will also warn that macroeconomic conditions may affect its 2025 sales.
Cal-Maine, an egg seller, is scheduled to report on Tuesday amid interest in the prices of this food stock. It has become a symbol for the fight against inflation and political talking point. Cal-Maine’s results for the previous quarter were better than expected due to increased egg prices.
Other notable reports this week include Rustoleum maker RPM international on Tuesday, Corona bee brewer Constellation Brands Wednesday, and car seller CarMax Thursday.
