The Market Week Ahead: April 8 – April 12

 

April 8 – It seems like all we talk about anymore is how markets are waiting to see what will happen with trade and Brexit. 

Guess what?

We’re doing it again. Earnings season will get underway this week, so by Friday evening’s report we should have something else to say, but for now, this is all we’ve got.

Before then though, its trade and Brexit. It seems like Brexit is almost certain to have some new developments this week. Under the current set of terms, Britain will leave the E.U. with no deal on Friday. Parliament and Prime Minster May are reportedly working on some kind of deal, but anything other than the deal Parliament has already rejected three times would have to be accepted by the E.U. Also needing approval from the E.U. would be an extension of the Brexit deadline, and the Europeans have signaled an unwillingness to approve another short-term extension. That means an extension would likely be longer, forcing Britain to take part in E.U. parliamentary elections, which would be unpopular with the pro-Brexit faction of Britons.

We can’t claim to know what’s actually going to happen, but it seems like the two most likely possibilities at the moment are a no-deal “hard” Brexit, or a long-term extension.

As for trade, we’re reportedly still getting closer to a trade deal with China. That’s pretty much all the news there is to report on that front. It seems obvious, but at some point, the negotiations will end and we will either have a deal or not. Until then, every day brings us closer to the end, but no closer to actually being able to trade on the outcome. 

Economic Events this Week

A lot of data about inflation this week. Those Fed Minutes on Wednesday will probably cause a little volatility, but seem unlikely to reveal anything actually new.

  • Wednesday
    • 8:30 a.m. – CPI
    • 8:30 a.m. – Core CPI
    • 10:30 a.m. – EIA Crude Oil Inventories
    • 2:00 p.m. – FOMC Minutes
  • Thursday
    • 8:30 a.m. – PPI
    • 8:30 a.m. – Core PPI

Earnings Reports this Week

Big banks at the end of the week signal the kick off of first quarter earnings season.  

Tuesday:

  • Before the bell: SJR
  • After the bell: WDFC

Wednesday:

  • Before the bell: DAL, MSM
  • After the bell: BBBY

Thursday:

  • Before the bell: FAST
  • After the bell: None

Friday:

  • Before the bell: JPM, WFC, PNC, INFY, FRC

Sector Analysis 

Strong Sectors past Month

These sectors are up 5% or more in the last 20 trading days:

  • Oil & Gas Exploration
  • Oil Services
  • Semiconductors
  • Robotics and Automation
  • Steel
  • Technology
  • Consumer Discretionary
  • Biotech
  • Solar
  • Metals & Mining
  • Multimedia and Netowrking
  • Internet
  • Homebuilders
  • Materials
  • S&P 500
  • Aviation

Weak sectors past month

No sectors are down 5% or more in the last 20 trading days:

Strong sectors past five trading days

These sectors are up more than 3% in the last five days.

  • Solar
  • Semiconductors
  • Steel
  • Robotics and Automation
  • Oil Services
  • Regional Banks
  • Banks

Weak sectors past five trading days

No sectors are down 3% or more in the last five trading days.

Bobby Raines

Bobby Raines

Bobby Raines is the Managing Editor of the Market Intelligence Center. He has degrees in Mass Communications and History from Emory & Henry College. Bobby worked at a mid-sized daily newspaper before making a switch to covering the financial industry full time in the years leading up to the financial crisis. He has been a member of the Fresh Brewed Media team since 2011 and has served as a writer and analyst. You can write to him at braines@marketintelligencecenter.com or follow him on Twitter: @BRatMICenter.

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