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Week Ahead: Corporate earnings dominate a huge week

George Walker, Friday, 24 April 2020

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Markets are set for another huge week of corporate earnings as some of the largest companies in the world deliver results throughout. FAANG stocks, UK banks and many others are up this week, but who’s really benefiting from the current economic climate and who’s been crippled by the pandemic? There’s also a plethora of macro data being released from across the globe in what is going to be one of the busiest, action-packed weeks we’ve seen in a while.  
 

Corporate Results

Markets are set for another huge week of corporate earnings as some of the largest companies in the world deliver results throughout. Pfizer, Pepsico, Tesla, Starbucks, UBS, Mastercard, Boeing, eBay, Visa, Twitter, Berkshire Hathaway and Exxon Mobile are just some of the US corporate giants set to announce results this week.
 
Big tech and FAANG stocks will more than likely be stealing the headlines. Microsoft, Alphabet (Google), Facebook, Apple and Amazon’s results in particular are all going to be eagerly anticipated. Aside from Apple, the online nature of these companies could mean that they fare better than other sectors during the current economic climate as countries in lockdown will be using online services considerably more. Whether it be business using services to enable staff to work from home, or the daily needs of people such as groceries and other shopping being ordered online, could this sector actually benefit in the current economic climate?
 
UK companies also begin releasing results over the coming week with Barclays and Royal Bank of Scotland the first of the major UK banks being the first to announce earnings. These banks have seen their share prices more than half since the beginning of the pandemic and investors will need to see how financially stable the banking sector is going forward.
 
Fashion retailer Next and house builder Persimmon will likely be expected to announce poor results as the lockdown has all but put their businesses temporarily on hold. Royal Dutch Shell remain one of the largest oil producers in the world so it will be interesting to see how the deflated oil price has affected their business and what their forward guidance will be.
 
Corporate results are often announced before markets open for trading, so investors and traders will need to be aware of the dates of earnings releases as shares can often see large gaps on the market open.
 

Macro Data

There is a very busy week ahead on the macro data front which will be closely monitored to see the impact the economic restrictions have had on global trade. In the early hours of Tuesday morning all eyes will be on the Bank of Japan's interest rate and monetary policy statement. The press conference at 07:00 BST could be a volatile time of the JPY as members of the press will probe the BoJ Governor for short and long-term plans to boost the economy.
 
Consumer Price Index (CPI) inflation data hits the wires overnight from Australia on Wednesday as well as preliminary CPI from Germany at 13:00. The rest of Wednesday will be focused on the US when preliminary GDP numbers are released an hour prior to US markets opening.
 
Traders will be eagerly awaiting the Interest Rate decision and press conference from the FOMC. The Federal Reserve led the way when they initially cut interest rates in order to limit the damage the coronavirus pandemic has had on the US economy. The press conference which follows the rate decision will hopefully shed some light on economic forecasts for the world’s largest economy and whether markets can expect further rate cuts in the near future. This could cause volatility across all markets so will certainly be worth paying attention to.
 
Thursday starts with Chinese Manufacturing and Non-Manufacturing PMI data before turning into an eventful day for Europe. Unemployment rate data is first up from the eurozone followed by preliminary CPI and GDP numbers later in the morning. All eyes will be on the European Central Bank interest rate decision and press conference in which Christine Lagarde will fall under scrutiny regarding how the ECB can help the eurozone where many countries are in need of support but to different extents. Members of the press will be asking difficult questions as this pandemic has caused many problems for an already struggling eurozone economy.
 
Initial and continuing jobless claims from the US have become ever more important to judge the health of the US economy and are released at 13:30 as well as GDP figures from Canada at the same time.
 
Friday’s data releases are dominated by Manufacturing PMI data from Germany, eurozone, UK, Canada and the US.  The manufacturing sector forms a large part of an economy’s total GDP, so the manufacturing PMI is an important indicator of business conditions and overall economic conditions.
 
As previously mentioned, volatility remains rife and current market unpredictability means traders will need to continually monitor a number of factors so as not to get caught out.
 
All times indicated are BST.

ECONOMIC CALENDAR (all times are BST)

Monday 27 April
15:30 USD Dallas Fed Manufacturing business Index
 
UK Company Announcements:
N/A
 
US Company Announcements:
Canadian National Railway Company
Keurig Dr Pepper Inc
 
Tuesday 28 April
00:30 JPY Jobs/Applicants Ratio
04:00 JPY BoJ Monetary Policy Statement
04:00 JPY BoJ Interest Rate Decision
04:00 JPY BoJ Outlook Report
07:00 JPY BoJ Press Conference
11:00 GBP CBI Distributive Trades Survey – Realised
13:30 USD Goods Trade Balance
13:55 USD Redbook Index
14:00 USD S&P/Case-Shiller Home Price Indices
15:00 USD Richmond Fed Manufacturing Index
15:00 USD Consumer Confidence
21:30 USD API Weekly Crude Oil Stock
23:00 NZD ANZ – Roy Morgan Consumer Confidence
23:45 NZD Trade Balance
23:45 NZD Exports
23:45 NZD Imports
23:45 NZD Participation Rate
23:45 NZD Unemployment Rate
 
UK Company Announcements:
N/A
 
US Company Announcements:
Alphabet Inc (Google)
Merek & Company Inc
Pfizer Inc
Pepsico Inc
Starbucks Corporation
United Parcel Service
3M Company
Mondelez International Inc
Advanced Micro Devices Inc
Caterpillar Inc
Ecolab Inc
VALE S.A.
Centene Corporation
ABB Limited
UBS AG
 
Wednesday 29 April
02:30 AUD Consumer Price Index
02:30 AUD RBA Trimmed Mean CPI
10:00 EUR Services Sentiment
10:00 EUR Consumer Confidence
10:00 EUR Industrial Confidence
10:00 EUR Business Climate
10:00 EUR Economic Sentiment Indicator
13:00 GER Consumer Price Index (Preliminary)
13:00 GER Harmonised Index of Consumer Prices (Preliminary)
13:30 USD Gross Domestic Product (Preliminary)
13:30 USD Personal Consumption Expenditures (Preliminary)
13:30 USD Core Personal Consumption Expenditures (Preliminary)
15:00 USD Pending Homes Sales
15:30 USD EIA Crude Oil Stocks Change
19:00 USD Fed Interest Rate Decision
19:30 USD FOMC Press Conference
 
UK Company Announcements:
Barclays
Next
Persimmon
WPP
 
US Company Announcements:
Microsoft Corporation
Facebook Inc
Mastercard Incorporated
Tesla Inc
American Tower Corporation
QUALCOMM Incorporated
Boeing Company
CME Group Inc
eBay Inc
 
Thursday 30 April
00:50 JPY Retail Trade
00:50 JPY Industrial Production
00:50 JPY Large Retailers’ Sales
02:00 NZD ANZ Business Index
02:00 NZD ANZ Activity Outlook
02:00 CNY Non-Manufacturing PMI
02:00 CNY NBS Manufacturing PMI
02:30 AUD Import Price Index
02:30 AUD Export Price Index
07:00 GER Retail Sales
07:30 CHF Real Retail Sales
08:55 GER Unemployment Rate
08:55 GER Unemployment Change
10:00 EUR Unemployment Rate
10:00 EUR Consumer Price Index (Preliminary)
10:00 EUR Consumer Price Index – Core (Preliminary)
10:00 EUR Gross Domestic Product (Preliminary)
12:45 EUR ECB Interest Rate Decision
12:45 EUR Deposit Rate Decision
13:30 USD Personal Consumption Expenditures- Price Index
13:30 USD Core Personal Consumption Expenditures – Price Index
13:30 USD Personal Income
13:30 USD Initial Jobless Claims
13:30 USD Continuing Jobless Claims
13:30 EUR ECB Monetary Policy Statement and Press Conference
13:30 CAD Gross Domestic Product
15:30 USD EIA Natural Gas Storage Change
 
UK Company Announcements:
J Sainsbury
Royal Dutch Shell
Schroders
St James’s Place
Evraz
Howden Joinery
 
US Company Announcements:
Apple Inc
Amazon.com Inc
Visa Inc
Comcast Corporation
McDonald’s Corporation
Gilead Sciences
Cigna Corporation
Stryker Corporation
Twitter Inc
 
Friday 1 May
08:55 GER Markit Manufacturing PMI
09:00 EUR Markit Manufacturing PMI
09:30 GBP Markit Manufacturing PMI
13:30 USD Average Hourly Earnings
14:30 CAD Markit Manufacturing PMI
14:45 USD Markit Manufacturing PMI
15:00 USD ISM Manufacturing Employment Index
15:00 USD ISM Manufacturing PMI
15:00 USD IAM Manufacturing Prices Paid
18:00 USD Baker Hughes US Oil Rig Count
 
UK Company Announcements:
Royal Bank of Scotland
 
US Company Announcements:
Berkshire Hathaway Inc
Exxon Mobile Corporation
Chevron Corporation
Novo Nordisk A/S
Charter Communications Inc
Honeywell International Inc
Colgate-Palmolive Company

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