As April heads for its last couple of trading days, and the first-quarter earnings season moves past its midpoint, the stock market is braced for a brisk week of news. Earnings from Apple ((AAPL)), Amazon.com (AMZN), big pharma and biotech names like Pfizer (PFE), Merck (MRK) and Amgen (AMGN) are due. It will be a key week for the e-commerce sector, with eBay (EBAY), PayPal (PYPL) and Etsy (ETSY) on the roster. And the Federal Reserve’s policy meeting highlights a busy week for the economic data crowd.
X
Stocks To Watch: Five Stocks Showing Strength
It’s time to build up those watchlists, and don’t limit yourself to tech stocks. Dell Technologies (DELL) and Datadog (DDOG) are showing positive action. So are chip megalith Nvidia (NVDA), uranium play Cameco (CCJ) and retail titan Walmart (WMT). Several of these are flashing early or pullback entries, mostly within bases. Nvidia is rebounding back above its 50-day line and right at a trendline entry. Cameco is hovering below a 50.43 buy point to a cup-with-handle base. Datadog is about 6% below a 138.61 flat-base buy point. Walmart will have a 61.66 flat-base buy point at Friday’s close. Most are showing decent relative strength in what’s been a rough stretch for the market.
Buckle Up: A Big Econ Week
The coming week will be huge for economic news. The Federal Reserve releases its policy update on Wednesday. Stakes are way down after Fed Chair Jerome Powell on April 16 essentially killed hopes for a rate cut before July. Even that’s a long shot. However, the Fed is expected to confirm its plan for scaling back the pace of balance-sheet runoff as Treasury and mortgage securities mature. Friday’s March employment report, after a string of strong showings, would need a pretty big miss to shift the outlook. The Fed’s primary measure of wage growth, the Employment Cost Index, is out Tuesday; it’s expected to continue moderating the pace seen in Q4.
Key Fed Inflation Rate Averts Worst Fears; S&P 500 Rises
Apple iPhone Sales In Focus
Consumer electronics giant Apple will report its fiscal second-quarter results after the stock market closes on Thursday. Investors will scrutinize the company’s iPhone sales amid reports of weak demand, especially in China. The company’s services business is expected to be a bright spot in the March quarter. Analysts predict Apple will earn $1.50 a share on revenue of $90.3 billion. That would translate to year-over-year declines of 1% in earnings and 5% in sales. Analysts see Apple returning to growth in the June quarter. Plus, analysts will be curious to hear Apple’s comments on the first quarter of Apple Vision Pro headset sales. Apple shares are down 12% year to date, tracking toward a fourth monthly decline.
Sellers Lurk In Amazon Stock, Super Micro Computer Ahead Of Earnings
Dow Gets Fast And Furious
The Dow industrials have a heavy week of earnings action in store as not only Apple, Merck and Amgen report, but also Coca-Cola (KO), McDonald’s (MCD) and 3M (MMM). Coca-Cola and 3M are both toying with breakouts ahead of earnings. By the end of the week, two-thirds of the benchmark’s constituents will have checked in for the first quarter.
Magnificent Seven Earnings: The Great Disrupter Reports
Amazon reports Q1 earnings after the market closes on Tuesday. Analysts look for a 12% increase in sales, to $142.6 billion, FactSet says. Analysts target a 170% earnings gain to 84 cents per share. Investors will key in on the Amazon Web Services cloud-computing results. Its sales are seen rising 15% year over year to $24.6 billion, a second straight quarter of acceleration, following several slower periods during a slump for enterprise IT spending. After Meta Platforms (META) raised its capital spending guidance last week, investors will also watch Amazon’s costs related to AI.
Pharma/Biotech: A Big Week For Big Pharma
Biopharma giants Pfizer, GSK (GSK) and Amgen are on deck to report their first-quarter earnings next week. Pfizer and GSK lead with releases before the market opens Wednesday. Analysts expect strong launches of their respiratory syncytial virus vaccines, Abrysvo and Arexvy. Amgen follows after the stock market closes on Thursday. Earnings are expected to be flat or lower for all three. Pfizer is seen diving 70%. Diabetes and weight-loss giants Eli Lilly (LLY) and Novo Nordisk (NVO) report their first-quarter earnings early Tuesday and Thursday, respectively. Lilly earnings are seen soaring 52%.
E-Commerce: The Online Shopping Scoop
PayPal serves up Q1 earnings on Tuesday. Analysts expect single-digit EPS and sales gains. PayPal shares have been consolidating in 2024 as new Chief Executive Alex Chriss aims to rekindle growth. EBay and rival Etsy report first-quarter earnings late Wednesday. EBay expectations call for single-digit increases. Etsy’s target is for an 8% EPS gain and a 1% sales dip. EBay is coming off 10-week support in a flat base. Shares are up 19% so far this year.
Stock Market Earnings In Brief
MONDAY
Domino’s Pizza (DPZ) reports first-quarter results early Monday. FactSet analysts expect earnings to increase 16% to $3.39 per share on 5.4% revenue growth to $1.08 billion. Shares are rebounding from 10-week support.
TUESDAY
Super Micro Computer (SMCI) reports fiscal third-quarter results after the stock market closes on Tuesday. Wall Street sees the data-center specialist earning $5.80 a share, up 256% year over year, on sales of $3.99 billion, up 211%, in the March quarter. Up 197% this year, the stock has pulled back from highs.
Advanced Micro Devices (AMD) releases Q1 results late Tuesday. Analysts expect the chipmaker to earn 62 cents a share on sales of $5.48 billion. In the year-earlier period, AMD earned 60 cents a share on sales of $5.35 billion.
Starbucks (SBUX) delivers its Q2 report late Tuesday. FactSet sees earnings growth slowing for a second quarter in a row, up 8.1% to 80 cents per share. Revenue is expected to rise 4.7% to $9.13 billion, with sales growth slowing for the fourth straight quarter.
WEDNESDAY
Mastercard (MA) Q1 earnings due early Wednesday are seen jumping 16% to $3.25 per share while revenue grows 10.3% to $6.34 billion. The results would mark two consecutive quarters of decelerating earnings growth. The stock is up 8% so far this year.
THURSDAY
CyberArk (CYBR) reports Q1 earnings early Thursday. Analysts expect adjusted profit of 28 cents a share vs. a 17-cent loss last year. Revenue is expected to climb 32% to $213.4 million. CyberArk sells identity and access management tools. The company hosts an investor day on May 21.
Block (SQ), Square’s owner, reports Q1 earnings after the stock market closes on Thursday. Analysts expect adjusted EPS to jump 80%. Revenue is expected to rise 17%, including Cash App transactions for digital cryptocurrency bitcoin. Another key metric, gross profit is pegged at $2.02 billion.
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