What to Expect in the Week Ahead (DIS, JD, LI and RBLX Earnings; Inflation Data, Debt Ceiling)

Moomoo Breakfast US wrote a column · May 7, 2023 20:46

What to Expect in the Week Ahead (DIS, JD, LI and RBLX Earnings; Inflation Data, Debt Ceiling)

Key inflation data, quarterly results from $Disney(DIS.US)$, and an increasingly contentious debate over the looming national debt limit await investors in the week ahead.

It will be another busy week of earnings, with $Devon Energy(DVN.US)$, $BioNTech(BNTX.US)$, $McKesson(MCK.US)$, $PayPal(PYPL.US)$, and $Tyson Foods(TSN.US)$ reporting on Monday.

Tuesday brings results from $Airbnb(ABNB.US)$, $Air Products & Chemicals(APD.US)$, $Apollo Global Management(APO.US)$, $Duke Energy(DUK.US)$, $Electronic Arts Inc(EA.US)$, and $Occidental Petroleum(OXY.US)$.

$Brookfield Asset Management(BAM.US)$, $Roblox(RBLX.US)$, $Li Auto(LI.US)$, and $Disney(DIS.US)$ are on the schedule for Wednesday.

And Thursday, we'll hear from $JD.com(JD.US)$ and $Tapestry(TPR.US)$.

The economic highlight of the week comes on Wednesday, when the Bureau of Labor Statistics releases the consumer price index for April. Economists forecast a 5% year-over-year increase, matching the March data. The core CPI, which excludes volatile food and energy prices, is expected to rise 5.4%, two-tenths of a percentage point less than previously.

On Tuesday, President Biden is expected to meet with the Speaker of the House Kevin McCarthy and other top congressional leaders as worries intensify that the U.S. will default on its date as early as June 1. Historically, uncertainty surrounding the debt ceiling has weighed on stocks.

On Thursday, The Department of Labor reports initial jobless claims for the week ending on May 6.

And the BLS releases the producer price index for April. The consensus call is for the PPI to increase 2.4% and the core PPI to rise 3.3%. This compares with gains of 2.7% and 3.4%, respectively, in March.

Finally, on Friday, the University of Michigan releases its consumer sentiment index for May. Economists forecast a dour 62.6 reading, about one point lower than in April.

Next Week

Monday 5/8

$Devon Energy(DVN.US)$, $BioNTech(BNTX.US)$, $PayPal(PYPL.US)$, and $Tyson Foods(TSN.US)$ release earnings.

Tuesday 5/9

$Airbnb(ABNB.US)$, $Rivian Automotive(RIVN.US)$, $Occidental Petroleum(OXY.US)$, $Duke Energy(DUK.US)$, $Occidental Petroleum(OXY.US)$, $Affirm Holdings(AFRM.US)$, and $Virgin Galactic(SPCE.US)$ report quarterly results.

The National Federation of Independent Business releases its Small Business Optimism Index for April. Consensus estimate is for a 90 reading, roughly even with the March figure. The index has had 15 consecutive readings below the 49-year average of 98 as inflation and a tight labor market remain top of mind for small-business owners.

Wednesday 5/10

$Disney(DIS.US)$ reports second-quarter fiscal-2023 results. Shares of the entertainment giant are up 16% this year, after plunging 44% in 2022, the worst performance since 1974. The company's brouhaha with Florida Gov. Ron DeSantis continues apace with a lawsuit and counterlawsuit filed.

$Roblox(RBLX.US)$, $The Wendy's Co(WEN.US)$, $Li Auto(LI.US)$ and $The Trade Desk(TTD.US)$ release earnings.

The Bureau of Labor Statistics releases the consumer price index for April. Economists forecast a 5% year-over-year increase, matching the March data. The core CPI, which excludes volatile food and energy prices, is expected to rise 5.4%, two-tenths of a percentage point less than previously. Both indexes are well below their peaks from last year but also much higher than the Federal Reserve's 2% target.

Thursday 5/11

$JD.com(JD.US)$ and $Tapestry(TPR.US)$ hold conference calls to discuss quarterly results.

The Bank of England announces its monetary-policy decision. The central bank is widely expected to raise its bank rate by a quarter of a percentage point, to 4.5%. The United Kingdom's CPI rose 10.1% in March from the year prior, making it the only Western European country with a double-digit rate of inflation.

The Department of Labor reports initial jobless claims for the week ending on May 6. Claims averaged 239,250 in April, returning to historical averages after a prolonged period of being below trend, signaling a loosening of a very tight labor market.

The BLS releases the producer price index for April. The consensus call is for the PPI to increase 2.4% and the core PPI to rise 3.3%. This compares with gains of 2.7% and 3.4%, respectively, in March. The PPI and core PPI are at their lowest levels in about two years.

Friday 5/12

The University of Michigan releases its Consumer Sentiment Index for May. Economists forecast a dour 62.6 reading, about one point lower than in April. Consumers' year-ahead inflation expectations surprisingly jumped by a percentage point in April to 4.6%.

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