Big Tech reports earnings, and 2 other things to watch in the market next week
Earnings season intensifies with reports coming from the major tech companies. Also: Notable economic indicators and Bitcoin falls back to a key support level.
The major indexes are firmly in negative territory Friday, extending what’s been a down month so far in April.
As of Friday afternoon, every sector is in the red. The biggest sector laggards on the S&P 500 for the week were communication services, energy and materials, down 7.8%, 4.2% and 3.4%, respectively.
The Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average (DJIA) have all fallen more than 2%. Here are three things to watch in the stock market next week that could affect your portfolio.
1. Earnings roundup
Next week, we move into the thick of earnings season. It’ll be one of the busiest weeks for earnings, with Microsoft (MSFT), Alphabet (GOOGL), Apple (AAPL), Amazon.com (AMZN) and Meta Platforms (FB) all reporting. Investors will be playing close attention to these Big Tech stocks, hoping for a potential turnaround for the tech-heavy Nasdaq, which has been slipping back toward its mid-March low — a level many thought was the market bottom.
A handful of reopening stocks are also slated to report, including Wyndham Hotels & Resorts (WH), JetBlue Airways (JBLU) and Southwest Airlines (LUV). Travel demand has returned, according to United Airlines (UAL), which reported an upbeat outlook for the airline industry when it reported its earnings on Wednesday. This list isn’t exhaustive, but the following notable companies scheduled to report, which could move some closely-watched stocks.
- Exxon Mobil (XOM)
- Chevron (CVX)
- Berkshire Hathaway (BRK.A)
- AbbVie (ABBV)
- Astrazeneca (AZN)
- Bristol-Myers Squibb (BMY)
- Honeywell International (HON)
2. Economic reports and indicators
On Thursday, Federal Reserve Chair Jerome Powell commented on the possibility of a half-point rate hike next month, which spooked the markets. During an International Monetary Fund panel moderated by CNBC’s Sara Eisen, Powell said an aggressive rate hike like a 50 basis point increase as soon as May is “on the table” to bring down inflation more quickly.
Next week, we’ll get a look at a number of key economic indicators, including measures of current industrial activity, the housing market and unemployment.
The number of Americans filing new claims for unemployment benefits fell slightly from last week, down 2,000 to 184,000, suggesting further strengthening in job growth. Looking to next week, here are some of the standout economic reports and indicators to pay attention to:
- Durable goods orders. A monthly US Census Bureau report that details manufacturers’ new orders, shipments and inventories.
- S&P CoreLogic Case-Shiller Home Price Index. Released by the Standard & Poor’s, this report tracks monthly changes in the value of residential real estate.
- New home sales. A joint report released by the US Census Bureau and the US Department of Housing and Urban Development that provides specifics on new residential home sales and prices.
- Pending Home Sales Index. Released by the National Association of Realtors, this index is an indicator of housing activity and is based on signed real estate contracts for existing single-family homes, condos and co-ops.
- Initial jobless claims. A weekly report showing the number of workers applying for unemployment benefits for the first time.
- Real gross domestic product. Released by the US Bureau of Economic Analysis (BEA), this report measures the value of the final goods and services produced in the US and is a leading indicator of US economic activity.
- Employment Cost Index. This US Bureau of Labor Statistics quarterly report details the growth of total employee compensation.
- Consumer Spending. A US BEA report that measures the value of the goods and services purchased by Americans
3. If Bitcoin will hold at this key support level
The price of Bitcoin (BTC) has been moving lower this week, dragging the broader crypto market with it. Assets including stocks have tumbled and investors will be looking for signs of relief from the current market rout.
Bitcoin has been treading water since the start of the year, hovering around the $40,000 level after pulling back from an all-time high of over $60,000 in November, according to data from CoinDesk. The coin rebounded in the latter half of March, climbing near the $48,000 resistance level, only to give up those gains. Cryptocurrencies just couldn’t escape the sell-off seen across assets amid mounting concerns that aggressive increases in interest rates could push the economy into a recession.
Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.
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