First-quarter earnings season kicks off this week, with 23 S&P 500 components releasing results. Banks as usual are among the first reporters, including JPMorgan Chase and Wells Fargo on Tuesday; Citigroup, Bank of America, and Goldman Sachs Group on Wednesday; Bank of New York Mellon on Thursday; and State Street on Friday. Other highlights include results from Johnson & Johnson on Tuesday, UnitedHealth Group on Wednesday, and Schlumberger on Friday.
Economic data out this week includes March retail sales figures from the Census Bureau on Wednesday. Economists are expecting to see a sharp 4.4% drop excluding auto sales. That would be the largest decline since the Financial crisis. Other notable releases include the Department of Labor’s initial jobless claims for the week ending on April 11 on Thursday and The Conference Board’s Leading Economic Index for March on Friday.
The International Monetary Fund will also update its World Economic Outlook on Tuesday. The IMF’s latest projection issued in January was for global gross-domestic-product growth of 3.3% in 2020. Needless to say, that forecast will come down significantly.
Many bourses around the world, including in Germany and the United Kingdom, are closed for Easter.
JPMorgan Chase and Wells Fargo report first-quarter results. Wall Street has its first peek at how the decline of economic activity in March affected companies’ bottom lines.
The International Monetary Fund releases its April 2020 World Economic Outlook. The IMF’s previous update in January forecasted global gross-domestic-product growth of 3.3% and 3.4% in 2020 and 2021, respectively.
The Census Bureau reports retail-sales data for March. Economists forecast a 6.4% decline, after a 0.5% dip in February. Excluding autos, retail sales are expected to plummet 5%, compared with February’s 0.4% drop. A 4% monthly fall or greater in retail sales would be the steeper than any during the depths of the Great Recession.
The National Association of Home Builders releases its Housing Market Index for April. Consensus estimates are for a 52.5 reading, down from 72 in March. A 52.5 reading would be the lowest for the index since 2015.
The Federal Reserve Bank of New York releases its Empire State Manufacturing Survey for April. Expectations are for a minus 32 reading, below March’s minus 21.5 figure.
The Census Bureau reports new residential construction data for March. Economists forecast a seasonally adjusted annual rate of 1.3 million housing starts, a significant decline from February’s rate of 1.6 million. Expectations are for 1.34 million new building permits, below February’s 1.45 million.
The Department of Labor reports initial jobless claims for the week ending on April 11. Over the past three weeks, an unprecedented 16.7 million people have filed unemployment claims.
Kansas City Southern, Schlumberger, and State Street report quarterly results.
The Conference Board releases its Leading Economic Index for March. Consensus estimates are for a 6.2% decline to 105.1 from February’s 112.1 reading. The largest monthly decline for the index was 3.4% in October 2008, during the height of the financial crisis.
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