First-quarter earnings season begins to ramp up this week, as 70 S&P 500 components release results. IBM and Haliburton kick off the week on Monday, followed by Netflix, Lockheed Martin, and Coca-Cola on Tuesday. Delta Air Lines and AT&T report on Wednesday, then Intel and Southwest Airlines on Thursday. Finally, Friday will bring releases from Verizon Communications and American Express.
Economic data coming out this week includes IHS Markit’s Manufacturing and Services Purchasing Managers’ Indexes for April, both on Thursday. Economists forecast a tumble in the manufacturing PMI, and a steady services equivalent—with both solidly in contraction territory. The Census Bureau releases its durable goods report on Friday, which can serve as a decent proxy for business investment. Economists expect an 11% decline in orders in March.
Finally, this Thursday the Department of Labor’s initial jobless claims for the week ending on April 18 will likely show millions more Americans joining the ranks of the newly unemployed. Over the past four weeks, about 22 million people have filed for unemployment insurance as the coronavirus outbreak and closing of nonessential businesses has led to an unprecedented wave of layoffs.
The Federal Reserve Bank of Chicago releases its National Activity Index for March. Economists forecast a minus 0.56 reading, below February’s 0.16.
Netflix reports first-quarter results. The stock has been one of the best performers in the S&P 500 index this year, and recently a huge beneficiary of social distancing.
Charles Schwab webcasts its Spring Business Update. CEO Walt Bettinger will discuss the firm’s strategic focus.
The National Association of Realtors reports existing-home sales data for March. Consensus estimates are for a seasonally adjusted annual rate of 5.47 million homes sold, 5.2% below February’s 5.77 million figure.
The Federal Housing Finance Agency releases its Home Price Index for February. Expectations are for a 0.4% gain, similar to January’s rise.
The Census Bureau reports new residential home sales for March. Consensus estimates are for a seasonally adjusted annual rate of 660,000 new single-family houses sold, a steep 13.7% drop from February’s 765,000 rate.
IHS Markit releases its Manufacturing and Services Purchasing Managers’ Index for April. Economists forecast a 36 reading for the Manufacturing PMI, down from March’s 48.5 figure. The Services PMI is seen coming in at 40, in line with the March data.
The Department of Labor reports initial jobless claims for the week ending on April 18. Over the past month, 22 million people have applied for unemployment benefits, roughly double the total in all of 2019.
American Express, Sanofi, and Verizon Communications hold conference calls to discuss quarterly results.
The Census Bureau releases the durable goods report for March. Consensus estimates are for a 11% decline in orders for manufactured durable goods. It would be the largest monthly decline since orders plummeted 18.4% in August of 2014. Excluding transportation, orders are expected to fall 6%, after edging down 0.6% in February.
Write to Nicholas Jasinski at firstname.lastname@example.org