Kamil Krzaczynski/ AFP / Getty
Key Takeaways
- The Federal Reserve's decision on interest rates is expected Wednesday.
- Ford, Palantir Advanced Micro Devices, Uber Technologies, Walt Disney and Ford are among the companies that will report earnings this coming week.
- Investors will also be looking for data on consumer debt, productivity and the U.S. Trade Balance.
Investors could be in for a busy week, with the Federal Reserve’s anticipated interest rate decision on Wednesday, as well as earnings from large tech and entertainment firms.
Palantir, Advanced Micro Devices, Uber Technologies and Walt Disney are among the companies that will report earnings. The week will also feature new data on U.S. trade, consumer credit and productivity.
Monday, May 5,
- S&P services PMI (April)
- ISM services PMI for April
- Earnings are due to be reported by Ford (F), Tyson Foods, Clorox (CLX), Onsemi and Vertex Pharmaceuticals.
Tuesday, May 6
- Federal Open Market Committee (FOMC), meeting begins
- U.S. trade deficit (March)
- Earnings are due to be reported by Advanced Micro Devices and Ferrari (RACE), Arista Networks, Duke Energy (DUK), Marriott International, Marriott International (MAR), and Electronic Arts.
Wednesday, May 7
- FOMC interest rate decision
- Press conference of Fed Chair Jerome Powell
- Consumer Credit (March)
- Earnings are due to be reported by Novo Nordisk (NVO), Uber Technologies (UBER), Walt Disney, Arm Holdings(ARM), AppLovin/Dash (DASH), Carvana/CVNA, Occidental Petroleum/OXY, Arm Holdings/ARM, AppLovin/APP, DoorDash/DASH), AppLovin/APP, AppLovin/APP, Carvana/CVNA and Occidental Petroleum/OXY.
Thursday, May 8,
- Initial claims for unemployment (Week ending on May 3)
- U.S. Productivity (Q1)
- Wholesale inventories (March)
- Shopify (SHOP), ConocoPhillips(COP), Anheuser-Busch InBev(BUD), Coinbase(COIN) and KenvueKVUE are scheduled to report their earnings.
Friday, May 9
- Federal Reserve Govs. Federal Reserve Govs.
Fed's Interest Rate Decision Comes Amid Political Pressure to Lower Rates
The Federal Reserve made its interest rate decision Wednesday as it faces increasing political pressures to lower interest rates. According to CME Group’s FedWatch, investors do not expect the Fed to lower rates from their current levels of 4.25-4.5%.
The Fed’s announcement comes after it received more encouraging news about inflation last week, when the March inflation rate was in line expectations but still above the target. The Friday jobs report showed that U.S. employers added more jobs in April than expected.
Jerome Powell, Federal Reserve Chair, has commented on the decision following weeks of scrutiny by President Trump. This has raised questions about whether the president can remove the Fed chairman from his post and what this would mean for central banking independence.
The Federal Reserve’s Blackout Period ends on Friday with an event that features a number of notable speakers, including Federal Reserve Governors Lisa Cook, Christopher Waller, New York Fed president John Williams, Cleveland Fed president Beth Hammack, and St. Louis Fed president Alberto Musalem. Kevin Warsh will also speak at the event. He is a former Fed Governor and a key advisor to Trump. He has been critical of Federal Reserve, and is considered one of Trump’s top candidates to succeed Powell.
Investors are also likely to be looking at other important economic releases this coming week, including the trade balance data on Monday and the initial jobless claims report on Thursday. Wednesday’s report on consumer debt comes as economists evaluate consumer health amid waning confidence. Thursday’s report on wholesale inventories could provide insight into supply chain stability as trade tensions continue to be high.
Palantir AMD Ford Disney and More report Earnings
Ford will be reporting on Monday to kick off the earnings week. The automaker has reduced its outlook due to Trump’s automobile tax increases. Palantir’s earnings after the bell on Monday could provide additional insight into demand for artificial-intelligence software.
Advanced Micro Devices will report on Tuesday, as the semiconductor industry is under pressure due to tighter trade restrictions on exports from China. AMD has said that this could result in costs of $800 million.
Uber, a ride-hailing service, and Novo Nordisk, a Danish pharmaceutical company are also expected to report Wednesday. Disney will follow. The entertainment giant’s report Wednesday follows a better-than-expected quarter for the company as it continues to build out its streaming service, even as it reportedly laid off about 6% of its news and cable TV divisions.
Other companies due to release their latest quarterly financial results this week include Coinbase, Shopify, brewer Anheuser-Busch InBev, energy firms ConocoPhillips and Occidental Petroleum, delivery service DoorDash, online used car retailer Carvana and video game maker Electronic Arts.
