April 29 – This is a very busy week for earnings reports with McDonald’s (MCD), Apple (AAPL), Qualcomm (QCOM) and DowDupont (DWDP) all reporting this week. That’s not the whole calendar though, we’re also getting an interest-rate decision from the Federal Reserve and the monthly employment report.
That doesn’t even include the income, spending and inflation data that came out this morning. It also doesn’t include the discussion we’ll inevitably hear from the financial media at some point this week about whether or not we should be selling in May and/or going away.
This morning’s data was largely in line with expectations. Incomes were a little short of estimates, while spending came in higher. Obviously that’s not a sustainable trend, but in the short term, it isn’t bad. the Core PCE Price Index, which is usually mentioned as the Federal Reserve’s preferred gauge of inflation didn’t move, although no one really expected much and the Fed wasn’t going to raise interest rates on Wednesday anyway.
We’re sure the market will find something to react to in the Fed’s statement after it announces no change to interest-rate policy. We’re not sure what it will be, and it seems unlikely that there will be any lasting effects, but the market has taken it’s cues from the central bank to let a statement and press conference go by without a little volatility.
The employment report on Friday will be interesting, but seems likely to remain on-trend. A big surprise may spark some short-term volatility, but it we’ve big misses and big beats from that number already this year and the effects rarely last through the weekend.
That leaves earnings, which is when the market has a chance to tell the sheep from the goats. This time through, as we saw earlier this year, the market seems to be doing a good job of exactly that. As opposed to 2017 and 2018 when a big-name report could make every stock in the market sheep or goats for a day.
Economic Events this Week
Today’s income, spending and price data was positive, but not overly so. The Federal Reserve and Friday’s employment report are the big news on the calendar this week.
- 8:30 a.m. – Personal Income
- 8:30 a.m. – Personal Spending
- 8:30 a.m. – PCE Price Index
- 10:00 a.m. – Consumer Confidence
- 10:00 a.m. – ISM Manufacturing Index
- 10:30 a.m. – EIA Crude Oil Inventories
- 2:00 p.m. – FOMC Rate Decision
- 8:30 a.m. – Initial Claims
- 8:30 a.m. – Continuing Claims
- 8:30 a.m. – Productivity – Prelim.
- 8:30 a.m. – Nonfarm Payrolls
- 8:30 a.m. – Avg. Hourly Earnings
- 8:30 a.m. – Avg. Workweek
- 8:30 a.m. – Unemployment Rate
- 10:00 a.m. – ISM Non-Manufacturing Index
Earnings Reports this Week
These are hundreds of companies reporting this week in addition to these big names.
- Before the bell: MA, PFE, MRK, MCD, BP
- After the bell: AAPL, AMGN, MDLZ, CB, VRTX
- Before the bell: ADP, CVS, CME, EPD, EL
- After the bell: QCOM, MET, PRU, MFC, PSA
- Before the bell: RDS.A, DWDP, CI, SPGI, ZTS
- After the bell: GILD, EOG, CTSH, ATVI, MNST
- Before the bell: BRK.B, AMT, D, TRP, FCAU
Strong Sectors past Month
These sectors are up 5% or more in the last 20 trading days:
- Financial Sector
- Regional BAnks
- Robotics and Automation
- Nasdaq 100
- Multimedia Netowrking
- Consumer Discretionary
- Cyber Security
Weak sectors past month
These sectors are down 5% or more in the last 20 trading days:
- Junior Gold Miners
- Gold Miners
Strong sectors past five trading days
These sectors are up more than 3% in the last five days.
- Cyber Security
- Regional Banks
- Health Care
- Medical Devices
Weak sectors past five trading days
These sectors are down 3% or more in the last five trading days.
- Oil Services