Markets Outlook for the Week: Anticipated Trends and Insights

17 views 12:41 pm 0 Comments May 20, 2024

Key Highlights

  • The upcoming bitcoin halving is expected to occur on Saturday or potentially earlier.
  • Earnings announcements are anticipated from a range of companies including Goldman Sachs, American Express, Morgan Stanley, Netflix, and United Airlines.
  • The schedule also includes speeches from Federal Reserve representatives and the release of regional economic data.

Cryptocurrency enthusiasts are eagerly awaiting the bitcoin halving event, which is likely to take place on Saturday or even sooner. This event, which reduces the availability of the coin, is expected to impact its market value.

This week’s earnings reports feature prominent financial institutions such as Goldman Sachs (GS), American Express (AXP), Morgan Stanley (MS), Bank of America (BAC), and Charles Schwab (SCHW). Additionally, Netflix (NFLX), United Airlines (UAL), and Procter & Gamble (PG) are among the companies set to disclose their financial performance.

Furthermore, investors can look forward to insights from various Federal Reserve officials, alongside updates on regional economic indicators and housing market trends.

Monday, April 15

  • Release of New York Fed’s Empire State manufacturing survey (April)
  • Announcement of U.S. retail sales data for March
  • Disclosure of Business inventories report for February
  • Publication of Homebuilder confidence index for April
  • Remarks by Dallas Fed President Lorie Logan and San Francisco Fed President Mary C. Daly
  • Earnings reports from Goldman Sachs, Charles Schwab, and M&T Bank (MTB)

Tuesday, April 16

  • Housing starts figures for March
  • Building permits data for March
  • Industrial production numbers for March
  • Capacity utilization statistics for March
  • Earnings releases from UnitedHealth Group (UNH), Johnson & Johnson (JNJ), Bank of America, Morgan Stanley, BNY Mellon (BK), and PNC Bank (PNC)

Wednesday, April 17

  • Mortgage applications report for the week ending April 12
  • Release of the Federal Reserve Beige Book
  • Earnings reports from United Airlines, Abbott Laboratories (ABT), U.S. Bancorp (USB), Travelers Cos. (TRV), Citizens Financial (CFG), First Horizon (FHN), and Discover Financial Services (DFS)

Thursday, April 18

  • Publication of initial jobless claims for the week ending April 13
  • Philadelphia Fed manufacturing survey results for April
  • Existing home sales data for March
  • U.S. leading economic indicators for March
  • Remarks by New York Fed President John C. Williams and Atlanta Fed President Raphael Bostic
  • Earnings announcements from Netflix, Intuitive Surgical (ISRG), and Infosys (INFY)

Friday, April 19

  • Speech by Chicago Fed President Austan Goolsbee
  • Earnings reports from Procter & Gamble, American Express, Fifth Third Bancorp (FITB), and Huntington Bancshares (HBAN)

Saturday, April 20

  • Potential occurrence of the bitcoin halving event

Bitcoin Halving Event on the Horizon

The upcoming bitcoin halving event is generating significant interest among cryptocurrency investors. This periodic occurrence, expected to happen on Saturday or potentially sooner, has historically influenced the price dynamics of bitcoin (BTCUSD), the largest cryptocurrency by market capitalization.

During a halving event, the rewards for bitcoin miners are halved, thereby reducing the rate of new bitcoin issuance. While previous halvings have led to price surges, it remains uncertain whether the heightened scarcity of the cryptocurrency will yield similar results this time. Factors such as the introduction of new spot bitcoin exchange-traded funds (ETFs) and a decrease in available bitcoin for trading have altered the market landscape around this event.

Continued Focus on Bank Earnings and Tech Reports

Following the commencement of earnings season by major banks, the upcoming week will witness a continuation of financial disclosures, with a spotlight on healthcare and technology companies.

Key highlights include Goldman Sachs’ earnings report on Monday, Morgan Stanley’s report on Tuesday, and Discover Financial Services’ disclosure on Wednesday. The week concludes with American Express (AXP) sharing its financial performance, building on its previous strong guidance and dividend increase.

Healthcare giant UnitedHealth Group will report on Tuesday amidst antitrust scrutiny, while Johnson & Johnson and Abbott Laboratories will disclose their financial results during the week. Additionally, Netflix’s earnings report on Thursday will be closely monitored for insights into its subscriber growth momentum, and Procter & Gamble’s financial update on Friday will shed light on revenue trends driven by pricing strategies.

Federal Reserve Updates and Economic Indicators

This week, investors will pay close attention to speeches delivered by various Federal Reserve officials, who are expected to provide insights into the central bank’s response to evolving economic conditions.

Notable figures such as San Francisco Fed President Mary C. Daly, New York Fed President John C. Williams, and Atlanta Fed President Raphael Bostic are scheduled to address key economic issues. Recent robust job market data and higher-than-expected inflation have prompted discussions among Fed officials regarding the timing of potential interest rate adjustments.

Moreover, updates on regional business conditions will be available through surveys from the Federal Reserve banks in New York and Philadelphia, along with the comprehensive Beige Book report encompassing economic summaries from all 12 Fed regions.

For news tips, please contact Investopedia reporters at [email protected].