What to Expect in the Markets this Week

Key Takeaways

• Tesla is scheduled to report its earnings Tuesday, amid a stock decline. This week, Google, Boeing, Intel, and others are expected to make headlines with their earnings reports.
• Federal Reserve Gov. Christopher Waller and Philadelphia Fed President Patrick Harker, along with Minneapolis Fed President Neel Kahkari are scheduled to speak.
• The economics will be looking at the consumer sentiment, new data on home sales, and durable goods orders to see how President Donald Trump’s Trade Policy has affected them.

This week, earnings and Fed speakers will be the main attractions. Magnificent Seven companies are set to report their results following a holiday-shortened US week in which the major US indices finished in the red.

The focus will be on the scheduled quarterly financial updates by Alphabet and Tesla (TSLA) this week, despite the ongoing uncertainty about U.S. Tariff Policy. Boeing (BA), Intel(INTC), and GE Aerospace(GE) will also be reporting as earnings season continues.

As economists track reactions to President Donald Trump’s announcements on tariffs, they will be focusing their attention on consumer sentiment. This week’s schedule includes surveys of the manufacturing and service industries, durable goods orders, and manufacturing and service industry surveys.

Federal Reserve Gov. Christopher Waller, Minneapolis Fed president Neel Kazhkari and Philadelphia Fed president Patrick Harker are among the US central banks officials scheduled to speak. Jerome Powell, Fed Chair, has recently been criticized by US President Trump.

Monday, April 21, 2019

• Leading economic indicators for the United States (March)
• The International Monetary Fund (IMF) and World Bank begin their spring meetings
• W.R. Berkley (WRB) Reporting earnings is scheduled

Tuesday, April 22

• Federal Reserve Vice Chairman Philip Jefferson and Philadelphia Fed president Patrick Harker You are scheduled to give remarks
• Tesla, SAP (SAP), GE Aerospace Verizon Communications (VZ), Capital One (COF) Lockheed Martin (LMT), The Intuitive Surgery (ISRG) Earnings are due to be reported

Wednesday, April 23

• S&P Global flash U.S. PMI (April)
• New home sales (March)
• Federal Reserve Beige Book
• Federal Reserve Gov. Christopher Waller Chicago Fed President Austan Goolsbee Cleveland Fed President Beth Hammack Alberto Muslem, President of the St. Louis Fed You are scheduled to give remarks
• Philip Morris International, IBM (IBM) AT&T (T), Thermo Fisher Scientific, Chipotle Mexican Grill GE Vernova (GEV), ServiceNow (NOW), Boeing Earnings are due to be reported

Thursday, April 24, 2019

• Initial Jobless Claims (Week ending April 19, 2019)
• Durable Goods Orders (March)
• Existing home sales (March)
• Neel Kashkari, Minneapolis Fed President The speaker is scheduled to make remarks
• Alphabet, Procter & Gamble (PG), T-Mobile (TMUS), PepsiCo, Inc. (PEP) American Airlines (AAL) Merck (MRK), Comcast (CMCSA), Bristol Myers Squibb (BMY), Intel Earnings are due to be reported

Friday, April 25, 2019

• Consumer sentiment – Final (April)
• AbbVie (ABBV), HCA Healthcare (HCA), Aon (AON) Colgate-Palmolive (CL), Charter Communications (CHTR). Earnings are due to be reported

Spotlight on Tesla Earnings, Alphabet and Boeing Despite Uncertainties Over Tariffs 

Investors are looking for clues to the health and state of the AI industry as well as indications about how tariffs, economic uncertainty and other factors could affect these firms.

Tesla’s scheduled quarterly earnings on Tuesday coincide with the stock of the electric car maker losing more than a third in value this year, amid wild volatility relating to tariffs and Elon’s political activity. The company announced weaker than expected first-quarter delivery earlier this month. 

Alphabet, the parent company of Google, will be reporting on Thursday. The Big Tech firm has continued to announce massive spending for artificial intelligence infrastructure. This includes a $75 billion announcement made earlier this year. Analysts were disappointed by its cloud revenue when it reported results for the prior quarter. 

Intel’s report, scheduled for Thursday, will focus on the U.S. semiconductor industry and its role as it relates to tariff policy. The struggling tech company now works under a newly appointed CEO, who is making moves to tighten up the company’s focus despite reports that it was in partnership talks with peers. IBM and ServiceNow, two other tech companies, are also expected to report their earnings this week.

Boeing’s report will be released on Wednesday. Stocks in the aircraft maker have plummeted on reports that Chinese airlines will stop accepting deliveries due to trade tensions. The GE Aerospace report is scheduled to be released on Tuesday.

Several telecommunications companies are scheduled to deliver their quarterly financial updates, including AT&T, Verizon, T-Mobile, Comcast, and Charter Communications.  

Investors will look at Thursday’s reports from Procter & Gamble and PepsiCo for indications on consumer spending, while Merck and HCA Healthcare are among health industry firms scheduled to report. 

Investors Watching Consumer Sentiment, Housing Market, Fed Officials' Remarks

This week, consumer sentiment will be the main theme. Economists have been closely watching a decline in soft data amid growing concerns over U.S. Tariff Policy and how it might influence inflation.

The final Michigan Consumer Sentiment Index, scheduled for release on Friday, for April, is part of a four-month decline for the closely monitored consumer survey. 

The new home sales figures are scheduled to be released on Wednesday. Affordability issues have hampered the housing market and builders have often relied on incentives to drive their sales. Durable goods orders are expected, as the factory sector also watches the impact of tariffs. The “flash” Purchasing Managements Index (PMI), scheduled for release on Wednesday, will show how import taxes affect the manufacturing and service sectors. 

Investors will be watching comments from Federal Reserve officials, after Fed Chair Jerome Powell upset the markets last week by stating that tariffs could have an inflationary effect.  This week, Chicago Fed President Austan Gollisbee, Cleveland Fed president Hammack, and Philadelphia Fed president Harker will be speaking.

The Federal Beige Book, scheduled for release on Wednesday, will also provide an overview of the economy in advance of the next meeting of the Central Bank on May 6 and 7,