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Last week, the market reached a high after a bit of upheaval. Stocks are on the rise as investors process the whirlwind of news.
This week seems to allow some breathing room, but there are still many opportunities to consider. Revenue season is in full swing, with companies like Walmart, which is the largest retailer in the world, stepping into the spotlight.
At the same time, important economic data, such as inflation figures and retail sales from April, will be tested to see if they impact market trends. Meanwhile, potential breakthroughs in US-China trade relations loom in the background, but opinions on that front vary.
Monday, May 12th
This day kicks off a global revenue reports slate. Companies such as the mall operator Simon Property Group, NRG Energy, and Fox Corporation will release their numbers.
On the macroeconomic side, the US Treasury Department’s budget statement for April will be out in the afternoon, providing a financial snapshot as discussions around the deficit heat up.
Tuesday, May 13th
Watch for inflation data: the consumer price index for April is due at 8:30 AM ET. This will give investors a key insight into inflation trends. Revenue reports will feature Petrobras and Sony along with Sea Limited from Singapore, and JD.com. Vodafone will also report.
Wednesday, May 14th
It’s a quieter day for data, but Cisco Systems will report earnings, expected to be around $0.75, slightly up from last year’s $0.72. This will provide insight into demand for enterprise technology, which has been a closely monitored area lately. Additionally, Ambefsa and CoreWeave, a Brazilian brewer with ties to InBev, will also share updates.
Thursday, May 15th
Prepare for a barrage of data. At 8:30 AM ET, the April producer price index and retail sales information will be released, accompanied by regional figures from the Empire State and Philadelphia Fed manufacturing surveys. At 9:15 AM, industrial production and capacity utilization data will come out, followed by March’s business inventory figures at 10:00 AM.
Walmart’s earnings will be especially significant, offering analysts insights into the health of US consumers, particularly amongst lower- and middle-income households. Given its position as the largest retailer globally, Walmart’s results will reflect various retail trends, inflation impacts, and shifting consumer behavior. This week appears crucial amid signs of a widening gap between hopes around US-China trade deals and the sentiments of low-income Americans, contrasted with Wall Street’s bullish behavior.
Look for results from Alibaba, John Deere, Applied Materials, and NetEase as well.
Friday, May 16th
This week concludes with significant economic readings. At 8:30 AM ET, the import and export price index for April will give insights into commodity inflation, while new housing launches and building permits will highlight developments in construction. At 10:00 AM, the University of Michigan’s Consumer Sentiment Index will provide early insights into consumer mood for May.
Revenue season often wraps up with intensity rather than a whimper, influenced by a few international companies. The market might take a collective breath, especially after the recent episodes of volatility unless overshadowed by geopolitical headlines.
