April 15 – We’ve got 20% less week this week due to the Good Friday holiday, but as the first full week of earnings season, it could be a busy one.
Big financials, as well as stalwarts from across the market, including industrials, health care and transportation. Various company-specific factors make it dangerous to extrapolate too much about what is going on in the economy from the details of a single report, but we’ll get a pretty broad view of what’s going from the updates we’re getting this week.
So far, the market hasn’t loved what we’ve seen from mega-cap banks. Wells Fargo (WFC) beat on the top and bottom lines, but warned that net interest margins would be narrow going forward. This morning, Citigroup’s (C) report included numbers that showed slowing revenue growth in the bank’s consumer operations. Combined with the news that trading revenue at Goldman Sachs (GS) fell during the quarter, most financial stocks are trading lower today.
Given that each bank had a slightly different area of concern, it’s possible that these are three isolated events. It’s also possible that these three banks, with somewhat disparate businesses are all telling us that economic activity was less than expected in the first quarter. We’ll definitely know more by the end of the week.
Economic Events this Week
Nothing too exciting this week. The earnings calendar is much busier and more likely to be market moving
- 9:15 a.m. – Industrial Production and Capacity Utilization
- 7:00 a.m. – MBA Mortgage Applications Index
- 8:30 a.m. – Trade Balance
- 10:00 a.m. – Wholesale Inventories
- 2:00 p.m. – Beige Book
- 8:30 a.m. – Retail Sales
- 8:30 a.m. – Initial and Continuing Unemployment Calims
- 8:30 a.m. – Philadelphia Fed Index
- 10:00 a.m. – Leading Indicators
Earnings Reports this Week
Earnings season is ramping up this week. Lots of companies in the financial sector are reporting, as well as some industrials.
- Before the bell: BAC, BLK, CMA, JNJ, PACQ, PGR, UNH
- After the bell: CSX, FULT, IBM, MRTN, MLNX, NFLX, UAL
- Before the bell: ABT, ASML, BMI, BK, ERIC, KSU, MS, PEP, TXT, USB
- After the bell: ADTN, AA, TEAM, BXS, ETFC, KMI, LVS, PIR, TMK, URI
- Before the bell: ALLY, AXP, BBT, BX, CHKP, DHR, DOV, GPC, HON, KEY, MAN, PM, BPOP, PPG, RF, SLB, SKX, SNA, SON, TRV, UNP
- After the bell: EXPO, FFIN, ISRG, PBCT
Strong Sectors past Month
These sectors are up 5% or more in the last 20 trading days:
- Robotics and automation
- Oil and gas exploration
- Consumer discretionary
- Multimedia and networking
- Oil Services
Weak sectors past month
No sectors are down 5% or more in the last 20 trading days:
Strong sectors past five trading days
No sectors are up more than 3% in the last five days.
Weak sectors past five trading days
These sectors are down 3% or more in the last five trading days.
- Metals and Mining