Dozens of companies from a wide range of industries will report quarterly results in the week ahead as the first quarter earnings season on Wall Street kicks into high gear.
So far, with one week in, companies are beating earnings estimates by a wide margin of more than 84%, according to Refinitiv.
Meanwhile, U.S. economic data will remain in focus as investors watch for further signals on the strength of the economy, with the latest reports on home sales and manufacturing activity topping the agenda.
Elsewhere, in Europe, markets are keeping an eye on the European Central Bank’s monetary policy meeting for further guidance on interest rates and stimulus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
1. Netflix, Intel, IBM Kick Off Tech Earnings
There are about 80 S&P 500 companies reporting earnings in the week ahead, including 10 Dow stocks, in what will be the first big week of the first quarter earnings season.
Most of the focus will be on Netflix (NASDAQ:NFLX), which is due to report its latest financial results after the closing bell on Tuesday.
The streaming giant is forecast to report adjusted earnings per share (EPS) of $2.97 on revenue of $7.14 billion, according to estimates.
Perhaps of greater interest, Wall Street will be closely watching subscriber growth numbers, which usually play a much bigger role in how its stock moves post-earnings.
NFLX shares hit a record high on Jan. 20, right after Q4 results, but has since slipped back. Options markets are pricing in a post-earnings move of 7% in the stock.
Earnings from tech bellwethers such as Intel (NASDAQ:INTC), and IBM (NYSE:IBM) are also on the agenda, as are results from Snap (NYSE:SNAP), and Lam Research (NASDAQ:LRCX).
2. Coca-Cola, Johnson & Johnson, Procter & Gamble Also Report
In addition, this week’s earnings calendar also includes high-profile names like Coca-Cola (NYSE:KO), Johnson & Johnson) (NYSE:JNJ), and Procter & Gamble (NYSE:PG).
Blue chips such as AT&T (NYSE:T), Verizon (NYSE:VZ), Lockheed Martin (NYSE:LMT), Harley-Davidson (NYSE:HOG), Halliburton (NYSE:HAL), Honeywell (NYSE:HON), and American Express (NYSE:AXP) are also among the dozens of major companies releasing results.
3. U.S. Housing Data
The National Association of Realtors will release data on existing home sales for March on Thursday at 10:00AM ET. The consensus forecast is that the report will show existing home sales rose 0.9% to reach 6.18 million, following a decline of 6.6% in February.
On Friday, the Commerce Department will then publish a report on new home sales. The data – due at 10:00AM ET – is expected to show an increase of 12.0% in March to 885,000, following a steep drop of 18.2% in the preceding month.
4. Flash U.S. PMIs
IHS Markit’s composite flash U.S. Purchasing Managers’ Index (PMI) for April is due at 9:45AM ET on Friday, amid expectations for an increase to 59.9 from a reading of 59.7 in March
The index, which measures the combined output of both the manufacturing and service sectors, is seen as a good guide to overall economic health.
In addition, this week’s rather light economic calendar also features the latest data on initial jobless claims, which fell to a new pre-pandemic low last week.
5. European Central Bank Policy Meeting
The European Central Bank is all but certain to keep interest rates at their current record low levels at the conclusion of its monetary policy meeting at 1145GMT (7:45AM ET) on Thursday.
President Christine Lagarde will hold a closely watched press conference 45 minutes after the rate announcement as investors seek further clues on central bank’s future pace of bond purchases.
The ECB has boosted its bond buying program to prevent a rise in borrowing costs from derailing the region’s economy, however recent signs of a swift recovery could raise questions over when it will start to withdraw support.