What will drive the markets this week?
Markets closed mostly lower last week in reaction to uncertainty about monetary policy from central banks, including the Federal Reserve and the impacts of the ongoing Russia-Ukraine conflict.
This week, markets will mainly be driven by the earnings seasons as major banks, including JPMorgan Chase, Wells Fargo, Goldman Sachs, BlackRock, Morgan Stanley, Citigroup, and PNC, report. Other companies, including Delta Airlines, UnitedHealth, and Taiwan Semiconductor Manufacturing Company (TSMC) also report earnings.
Investors are particularly waiting to see how bank revenue and earnings have been affected by higher interest rates – higher rates tend to increase the net interest margins and profitability of financial firms. Markets will also digest a host of economic data, including the highly-anticipated Consumer Price Index (CPI) and Producer Price Index (PPI), retail sales data and the University of Michigan’s preliminary reading of its Consumer Sentiment Index for April.
Monday, April 11:
- Consumer Inflation Expectations (March)
Tuesday, April 12:
- CPI Headline Inflation Rate (March)
- CPI Core Inflation Rate (March)
- IBD/TIPP Economic Optimism Index (April)
Wednesday, April 13:
- PPI Headline Inflation Rate (March)
- PPI Core Inflation Rate (March)
- Earnings from JPMorgan Chase, BlackRock, Delta Airlines, First Republic Bank, and Bed Bath & Beyond.
Thursday, April 14:
- Retail Sales (March)
- Michigan Consumer Sentiment Index - Preliminary (April)
- Initial Jobless Claims (Week ended April 9)
- Earnings from TSMC, UnitedHealth, Wells Fargo, Goldman Sachs, Morgan Stanley, Citigroup, PNC Financial Services, State Street, and Rite Aid.
Friday, April 15:
- Industrial Production (March)
- Manufacturing Production (March)
- Capacity Utilization Rate (March)