(New York) The New York Stock Exchange is hovering around equilibrium on Monday at the start of a very busy week in terms of corporate results but also in macroeconomic indicators.
The Dow Jones Index was up 0.17% and the S
Wall Street ended slightly higher on Friday. The Dow Jones had nibbled 0.07% to 33,918 points, the NASDAQ index had granted 0.11% to 13,094.25 points and the broader index S
“So far, earnings releases have been mixed, which is why stocks declined last week,” Schwab analysts summed up.
Investors broadly expect earnings per share to decline 6.2%, presaging “a recessionary earnings season.”
The week started with Coca-Cola’s quarterly accounts, which showed growth in volume sales despite its price increases, which it expects to continue in 2023.
The maker of Sprite and Fanta posted a 5% increase in earnings per share excluding exceptional items, a figure above expectations.
The Atlanta group’s stock was up 0.89% around 9:40 a.m. EST. The results of its competitor PepsiCo are expected on Tuesday.
This day will be one of the busiest in corporate results, including those of General Electric, Raytheon, General Motors, UPS and McDonald’s.
To this must be added, after the closing, the big names in technology Alphabet, the parent company of Google, and Microsoft.
They will be followed on Wednesday by Meta (Facebook) as well as Amazon and Intel on Thursday.
“But the week isn’t defined by company results alone,” recalled Patrick O’Hare of Briefing.com.
Among a host of expected indicators, the most watched will be the first estimate of Gross Domestic Product (GDP) on Thursday, where growth in the world’s largest economy is expected to slow in the first quarter.
Friday will be published PCE inflation for March based on household spending, a favorite measure of the US central bank (Fed) to gauge rising prices.
It, too, is expected to slow down, but analysts fear that it will remain tenacious for the so-called “underlying” component, excluding food and energy.
Investor focus on the indicators will be all the more keen as the Fed prepares for a monetary meeting next week.
Markets are increasingly confident (90%, according to futures products observed by CME) of another 25 basis point rate hike. This would bring these overnight rates to between 5% and 5.25%.
But, at the same time, “there is also concern about the fallout from recent banking difficulties that could slow the economy,” warned Art Hogan of B. Riley Wealth Management.
“Many wonder if the tightening of credit conditions caused by the banking stress of the past month will lead to a decline in investment and spending and therefore weigh on growth,” added the analyst.
Regional bank First Republic Bank is due to announce its results on Monday which will show the extent to which there was a flight of deposits in the first quarter.
The stock was up more than 8% around 10:10 a.m. EST.
In the bond market, yields on 10-year Treasury bills fell 1% to 3.53% from 3.57% at the previous close.