Key Events and Earnings to Watch in the Week Ahead
Investors have been inundated with a plethora of information over the last two weeks, including earnings reports, economic data, and the latest policy announcement from the Federal Reserve. As we look ahead to the upcoming week, the flow of earnings reports is expected to continue, albeit at a slower pace, while the economic calendar is anticipated to be relatively quiet.
Last week, investors reacted positively to the April jobs report, which showed that the US labor market grew at a slower pace in the previous month. This led to speculation that the Federal Reserve may cut interest rates later this year. The positive sentiment was further bolstered by strong earnings reports from tech giant Apple, which announced plans to boost shareholder returns.
In the week ahead, investors will be closely watching earnings reports from companies in the consumer and entertainment sectors. Disney is expected to deliver its first quarterly earnings since winning a proxy fight with activist investor Nelson Peltz. Subscriber growth for its streaming services, parks attendance, and the company’s outlook on the summer box office will be key areas of interest for investors.
Results from Warner Bros. Discovery, the parent company of cable networks HBO, TBS, and TNT, will also be closely watched, particularly in light of ongoing negotiations for the NBA’s next media rights deal. Other notable earnings reports expected in the week ahead include updates from ridesharing companies Uber and Lyft, as well as consumer brands like the Cheesecake Factory, Papa John’s, Celsius, and Krispy Kreme.
On the economic front, the calendar is relatively light, with the preliminary look at consumer sentiment from the University of Michigan on Friday being the only notable report. While a few Federal Reserve officials are scheduled to speak publicly, Fed Chair Jerome Powell is not among them.
The recent jobs report, which showed slower job growth and easing wage pressures, has led to speculation about a potential interest rate cut from the Federal Reserve. However, experts caution that the labor market remains healthy and that the Fed will likely wait for more benign inflation data before making any decisions.
Overall, the first quarter of 2024 has been marked by positive earnings reports and a more optimistic outlook from analysts. Companies like Apple have exceeded expectations, and analysts have actually raised earnings estimates for the first time since 2021. This positive fundamental story has contributed to the market rally and investor confidence in the months ahead.
As we head into the new week, investors will be keeping a close eye on earnings reports and economic data for further insights into the state of the economy and the financial markets. Stay tuned for more updates and analysis on the latest stock market news and events from Yahoo Finance.