Ahead this week: Apple’s earnings, jobs data, and Fed decision
Events of the week ahead
Tuesday
ECB rate increase
On Thursday, the European Central Bank is expected to increase interest rates once more; two possible increases are 25 and 50 basis points. The balance will be tipped by Tuesday’s figures on bank lending and inflation in the Eurozone.
RBA is likely to stay in place.
Following new consumer price data that strengthened the case that inflation peaked at the end of last year, the Reserve Bank of Australia is anticipated to hold interest rates steady at its meeting on Tuesday.
WEDNESDAY
Fed decision
On Wednesday, the Fed is anticipated to increase interest rates by another 25 basis points against a backdrop of continuing inflation and escalating worries about the future of the economy.
Economic data points worldwide
The market players will also be keeping an eye on the US jobs statistics, non-farm payrolls, and unemployment rate numbers due later this week. In addition, we will receive manufacturing and services PMI data from the United States, India, China, and Europe.
Earnings of week
Apple Inc (AAPL) on thursday
Ford (NYSE:F), Starbucks (NASDAQ:SBUX), Pfizer (NYSE:PFE), Marriott International (NASDAQ:MAR), Moderna (NASDAQ:MRNA), Kraft Heinz (NASDAQ:KHC), Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD), and Uber Technologies (NYSE:UBER).
FRIDAY
U.S. employment report
On Friday, the United States will issue its April employment report, which is predicted to reveal that the country’s economy gained 180,000 jobs. It would be a good number, but it would be the third month in a row that job growth has moderated.
MAJOR GLOBAL EVENTS OF THE WEEK
MONDAY
USA
S&P GLOBAL MANUFACTURING PMI (APR), CONSTRUCTION SPENDING(MAR)
JAPAN
JIBUN BANK MANUFACTURING PMI, CONSUMER CONFIDENCE (APR)
TUESDAY
USA
FACTORY ORDERS, JOLTS JOB OPENINGS & QUITS (MAR), TOTAL VEHICLE SALES (APR)
EUROZONE
HCOB MANUFACTURING PMI (APR)
WEDNESDAY
USA
FED RATE DISCION, API AND EIA CRUDE OIL STOCK CHANGE, MBA MORTGAGE APPLICATIONS( FOR WEEK ENDED APR 28), S & P GLOBAL SERVISE AND COMPOSITE PMI (apr)
EUROZONE
UNEMPLOYMENT RATE (MAR)
THURSDAY
USA
BALANCE OF TRADE (MAR), INITIAL JOBLESS CLAIMS FOR WEEK ENDED (APR 29)
EUROZONE
ECB INTEREST RATE DECISION, HCOB SERVISES & COMPOSITE PMI (APR), PPI (MAR)
CHINA
CIAXIN MANUFACUTRING PMI (APR)
FRIDAY
USA
UNEMPLOYMENT RATE, NON-FARM PAYROLLS, USED CAR PRICES (APR)
EURO AREA
HCOB CONSTRUCTION PMI (APR) RETAILS SALES (MAR)
CHINA
CAIXIN SERVICES & COMPOSITE PMI (APR)
For today’s market
ECONOMIC CALENDAR TODAY
Monday, May 1, 2023
09:45 Manufacturing PMI (Apr)
10:00 ISM Manufacturing PMI (Apr)
11:30 3 & 6 -Month Bill Auction
EARNINGS
AFTER THE MARKET OPEN
Stryker (SYK) Vertex (VRTX) Arista Networks (ANET) NXP (NXPI) VICI Properties (VICI) Diamondback (FANG) SBA Communications (SBAC) Hologic (HOLX) Invitation Homes (INVH)MGM (MGM)FMC (FMC) Everest (RE)Symbotic (SYM) Tetra Technologies (TTI) Solaris Oilfield (SOI) Clarus (CLAR) Community Health Systems (CYH) Piedmont Office)
BEFORE THE MARKET CLOSE
ON Semiconductor (ON)WEC Energy (WEC)Global Payments (GPN) Check Point Software (CHKP) SJW (SJW) Park Hotels & Resorts (PK) SoFi Technologies (SOFI)Norwegian Cruise Line (NCLH) Franklin Resources (BEN)Loews (L) Check Point Software (CHKP)
ECONOMIC DATA
The U.S. Q1 GDP QoQ rose by 1.1% versus +2.0% expected and slower than the 2.6% growth in 4Q. However, Atlanta GDPNow recently revised their estimate down to 1.1%, so this is not a complete shock to the markets.Real consumer spending increased by 3.7% in Q1 compared to 1.0% in Q1 last year, while core PCE prices increased by 4.9% in Q1 compared to +4.7% expected.
The number of Weekly Jobless Claims decreased to 230K from 246K the previous week and below estimates of 248K; the 4-week moving average decreased to 236K from 240K; the number of Continued Claims decreased to 1.858M from 1.861M the prior week and below estimates; and the U.S. Insured Unemployment Rate remained steady at 1.3%.
March Pending Home Sales Index (-5.2%) vs. Expected +0.5%; March Pending Home Sales -23.2% Year-over-Year.
The 1Q employment cost index rises 1.2%, above expectations of 1.1%.
Personal Spending remained constant vs. est. (-0.1%) and prior +0.1%, while March real consumer spending remained constant. Personal Income for April MoM rises +0.3% vs. est. +0.2% and prior +0.3%.
March PCE Deflator price index overall M/M increases by 0.1% (consistent) and 0.3% vs. February; Y/Y increases by 4.2% vs. an expected +4.1% vs. February by 5.1%. Core PCE increases +0.3% M/M in line with expectations and +4.6% Y/Y, which is lower than the +4.7% seen in February.
Chicago reported a 48.6 business index, above the expected 43.6.
Consumer feeling at the University of Michigan in April was 63.5 (as expected), compared to preliminary April 63.5 and final March 62.0; the present conditions index was 68.2 in April, compared to preliminary April 68.6 and final March 66.3; and the expectations index was 60.5 in April, compared to preliminary April 60.3 and final March 59.2.
Consumer surveys conducted by the University of Michigan found that the 1-year inflation expectation for April was 4.6%, compared to preliminary 4.6% and final March 3.6%, and that the 5-year inflation prediction for April was 3.0%, compared to preliminary 2.9% and final March 2.9%.