Stocks were stuck in a holding pattern this week as investors braced for the coming wave of Big Tech earnings and the Fed’s favorable inflation reading. Earnings reports are generally better than expected this first quarter. Full-year estimates for the S&P 500 were mostly held at the $220 level heading into April. Next week’s announcements will certainly test those numbers with bulls riding the Nasdaq’s 15% gain this year. It will also be the biggest week for our portfolio. How important is next week to the market? Consider this: The combined 2023 earnings estimates for Amazon ( AMZN ), Meta Platforms ( META ), Alphabet ( GOOGL ) and Microsoft ( MSFT ) — all reporting next week and all major club names — represent more than 12% of the $220 estimate. . Market strategies closely monitor technology numbers for indications of whether the current earnings number of $220 is too high, too low, or just right. That’s the question all investors will be trying to answer by Friday. These four powerful mega-caps provide valuable insight into multiple economic sectors, from management teams alone that can sway investor sentiment. For example, Amazon is expected to earn $1.49 per share this year. But the e-commerce platform provides significant clues to the state of the consumer, while the AWS cloud segment provides an equally important check on the cost of doing business, two of the most material indicators of economic growth. In addition to earnings, the March report on personal spending and income was released on Friday. This report includes the Federal Reserve’s favorite measure of inflation: the Personal Consumption Expenditure (PCE) price index. The Fed likes this reading because of changes in consumer behavior, including the fact that buyers are substituting goods based on price. The Street Central Bank is trying to determine the likelihood of a soft landing for the economy – or if it is heading for a recession. Here are all the club names reporting next week: Halliburton (Hall) and Danaher (DHR) reported before the bell Tuesday. Alphabet and Microsoft reported after the bell Tuesday. Humana ( HUM ) will report before the bell Wednesday; Meta Platforms and Pioneer Natural Resources ( PXD ) reported after the bell Wednesday. Linde ( LIN ), Honeywell ( HON ), Eli Lilly ( Lilly ) and Caterpillar ( CAT ) will report before the bell Thursday. Amazon reported after the call Thursday. Here are other earnings reports and all the economic numbers for the week ahead: Monday, April 24 Before the bell: Coca-Cola (KO), Royal Phillips (PHG) After the bell: Cleveland-Cliffs (CLF), First Republic (FRC), Whirlpool (WHR) Before the bell on Tuesday, April 25: 3M ( MMM ), Biogen ( BIB ), Dow Chemical ( DOW ), GE HealthCare ( GEHC ), General Electric ( GE ), General Motors ( GM ), JetBlue ( JBLU ), Kimberly-Clark ( KMB ), McDonald’s ( MCD ), PepsiCo ( PEP ), PulteGroup ( PHM ), Raytheon Technologies ( RTX ), Sherwin Williams ( SHW ), Spotify ( SPOT ), United Parcel Services ( UPS ), Verizon ( VZ ) After the bell: Chipotle (CMG), Illumina (ILMN), Texas Instruments (TXN), Visa (V) 10 a.m. ET: New home sales Wednesday, April 26 Before the bell: Norfolk Southern (NSC), Boeing (BA), Boston Scientific (BSX) , Entergy ( ETR ), Fortive ( FTV ), General Dynamics ( GD ), Hilton Worldwide ( HLT ), Owens Corning ( OC ), Penske Auto ( PAG ), Ryder Systems ( R ), Thermo Fisher ( TMO ), Bell After: Canadian Pacific ( CP ), eBay ( EBAY ), Edwards Life Sciences ( EW ), ServiceNow ( NOW ), United Rentals ( URI ) Thursday, April 27 Before the bell: Comcast ( CMCSA ), Crocs ( CROX ), Domino’s Pizza ( DPZ), AbbVie (ABBV), American Airlines (AAL), AstraZeneca (AZN), Bristol-Myers (BMY), Harley-Davidson (HOG), Hasbro (HAS), Hershey (HSY), Hertz (HTZ), International Paper ( IP ), Keurig Dr. Pepper ( KDP ), Mastercard ( MA ), Merck ( MRK ), Northrop Grumman ( NOC ), Rockwell Automation ( ROK ), Sanofi ( SNY ), SiriusXM ( SIRI ), Southwest ( LUV ), Tractor Supply ( TSCO ), Valero Energy ( VLO ) After the bell: Amgen ( AMGN ), Boston Beer ( SAM ), Capital One ( COF ), Activis ( ATVI ), Intel ( INTC ), L3Harris ( LHX ), Mondelez ( MDLZ), Skechers (SKX), Snap (SNAP), T-Mobile (TMUS), US Steel (X) 8:30 am ET: Weekly Initial Jobless Claims 8:30 am ET: Total Domestic Price Index 10 :00 am ET: Pending home sales Friday, April 28 before the bell: AON (AON), Bloomin’ Brands (BLMN), Charter Communications (CHTR), Chevron (CVX), Colgate-Palmolive (CL), Exxon (XOM) , LyondellBasell (LYB), Newell Brands (NWL) 8:30 am ET: Personal Spending and Income (Includes PCE Price Index) Club Trading Only one trade this week: We added 150 shares of Coterra Energy (CTRA) on Wednesday. . Jim Cramer’s Charitable Trust, which we use as a club portfolio, has 1,150 shares of CTRA, increasing its weighting from 0.95% to 1.1%. The largest oil and natural gas producer recently backed share buybacks amid changes in its capital-return priorities. So we want to buy from him. Looking back, first quarter earnings for club holdings continued to be strong, with Johnson & Johnson ( JNJ ), Morgan Stanley ( MS ) and Procter & Gamble ( PG ) all posting strong results. This past week, as you might expect, there were few economic reports that suggested some softness, with the Federal Reserve quickly tightening monetary policy to fight inflation. The market is pricing in a roughly 90% chance of another quarter-point rate hike at the central bank’s May meeting, according to CME’s FedWatch tool. Tuesday brought J&J earnings before the bell. Given J&J’s strong Q1 results and full-year outlook, we were surprised to see the stock sell off that day. The reason behind Tuesday’s decline is that management’s forecast for drug sales in 2025 will be $57 billion, down from an annual $60 billion forecast two years ago. There’s plenty else to like in this report, and some investors bid on the stock over the weekend. Also on Tuesday, March housing starts and building permits missed expectations. Morgan Stanley reported better-than-expected first-quarter results on Wednesday, although the stock had already come under pressure from rising costs. But the results, including strong non-interest income, were impressive in a tough economic environment. The stock closed higher at the end of the day and was relatively flat for the rest of the week. There was another report of big banks resisting the recent mini-crisis in the states. On Thursday, jobless claims rose to 245,000 from 5,000 last week. While still low compared to the peak, claims for jobless benefits have been trending higher since the most recent low of more than 180,000 in September. Maybe it’s a sign that the Fed’s rate hike is cooling the labor market a bit. The Philadelphia Fed’s manufacturing index was softer than expected, falling to the lowest level since May 2020. P&G posted a quarterly earnings beat and increased guidance. The consumer goods giant raised prices repeatedly during the quarter, allowing it to increase its gross margin by 150 basis points year-on-year. As of Friday’s settlement, the US dollar index is trading at just 102 levels. Gold trades below $2,000 an ounce. WTI crude prices hovered around $78 a barrel, down for the week and breaking a four-week winning streak. On the other hand, natural gas is trading around $2.22 per British thermal unit, marking its best weekly gain since March and climbing for a second week in a row. The yield on the 10-year Treasury was 3.57 percent. Inversely moving bond yields have been falling in recent weeks after hitting year-to-date lows in early April. (See here for a full list of his stocks. Jim Cramer’s Charitable Trust.) As a CNBC Investing Club subscriber with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charity portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. The above Investment Club information is subject to our terms and conditions and privacy policy along with our liability. No fiduciary duty or obligation is, or will be created, as a result of your acceptance of any information provided in connection with the Invest Club. No specific results or profits are guaranteed.
February 14, 2023 People walk through the New York Stock Exchange (NYSE) in New York City.
Spencer Platt | Getty Images News | Getty Images
Stocks were stuck in a holding pattern this week as investors braced for the coming wave of Big Tech earnings and the Fed’s favorable inflation reading.
Earnings reports are generally better than expected this first quarter. Full year estimates b S&P 500 They are mostly held at the $220 level coming into April. Next week’s announcements will certainly test those numbers with bulls riding the Nasdaq’s 15% gain this year. It will also be the biggest week for our portfolio.
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