Concerns over the escalation of the conflict between Iran and Iraq led to very mixed results for the stock market last week. As a result, IBD’s Stock Market Exposure Guide shifted down to its lowest level over the weekend.
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Investors will have no shortage of stimulus next week. microsoft (MSFT), boeing (BA), tesla (TSLA), meta platform (meta) and alphabet (GOOGL) to name a few. Economic news is also influential, covering first quarter GDP and some key inflation items.
Stocks to watch: 5 strong stocks in a weak market
While the stock market has been down in recent days, it’s a good time to build a watchlist. A diverse collection of stocks — hubspot (hub), C Co., Ltd. (SE), allstate (all), kava group (CAVA) and transdigm (TDG) — It’s holding up well, finding and bouncing off major support. Sea and Allstate have rebounded strongly from their 50-day lines, and property/casualty insurance company Allstate has regained a buy point. HubSpot has been canceled to retest support. Popular restaurant IPO Cava is testing its 50-day line and is still up 40% for the year after a big move. Aerospace and defense leader TransDime has been solid this week, falling less than 3% while allowing key moving averages to catch up.
Economic Calendar: First Quarter Growth Data Summary
Next week’s economic report will feature first-quarter GDP and the Fed’s key inflation measure, with updates for both March and the first quarter. Based on information already reported, upcoming data is unlikely to alleviate the recent spike in interest rates. GDP statistics released on Thursday will provide a complete picture. The first official estimate of real GDP puts growth at 2.1% in the first quarter, expected to decline from 3.4% in the fourth quarter. The Bureau of Economic Analysis reports the core PCE price index along with GDP. Personal spending and expenditures for March will be released on Friday. The increase in retail sales in March suggests that consumer spending likely ended the quarter on a strong note.
Downnotes: Big week for blue-chip stocks
The Dow Jones Industrial Average will move into full reporting mode next week. visa (V), intel (INTC), caterpillar (CAT) and Merck (MRK) will report in addition to Boeing. verizon (VZ), Microsoft, chevron (CVX). Profit forecasts are evenly split, with half expected to make a profit. Inter is believed to have turned a profit from a deficit a year ago.Caterpillar is the second biggest rising stock this year, excluding the Dow Jones Industrial Average disney (DIS), earnings are expected to slow to 5% growth. By the end of the week, almost half of the Dow 30 index had reported, representing about 40% of the benchmark’s overall market capitalization.
Microsoft’s profits increased by 15%
Microsoft, the largest of the Dow Jones Industrials by market capitalization, is scheduled to report its third-quarter results after the stock market closes on Thursday. Analysts surveyed by FactSet expect Microsoft’s March quarter revenue to rise 15% to $60.8 billion and earnings per share to rise 15% from a year ago to $2.82. Analysts will pay close attention to the company’s cloud computing business, including Azure infrastructure services and Office productivity software. Investors also want to know about Microsoft’s progress in monetizing its investments in generative artificial intelligence, including its Copilot product. The stock rose about 15% for the year to its peak in March, but fell 5% last week.
GE Aerospace wins wings
The GE ticker is unveiled in earnest for the first time as a pure play. ge aerospace (GE) Reported early Tuesday morning. FactSet notes that sales increased 11% and EPS increased by triple digits. The company’s stock is up 48% since the beginning of the year and has held up well in a volatile market, trading just off its recent highs.energy spinoff GE Vernova (GEV) reported on April 25th. GE Healthcare (GEHC) reported on April 30th.
EV Market: Tesla’s Ghost Auto Trading
Tesla released its report after the stock market closed on Tuesday, with analysts and investors waiting for clarity on Elon Musk’s strategy for robotaxis and next-generation vehicles. Wall Street expects first-quarter earnings to fall about 42% and sales to fall 4.5%.
Aerospace: Details on Boeing’s meltdown
Boeing is working to fix production and mechanical problems on its commercial aircraft and will report first-quarter results on Wednesday. FactSet expects Boeing to report an adjusted loss of $1.63 per share in the first quarter, widening from a loss of $1.27 per share last year.
Google gets AI report card
Alphabet released first-quarter results after the stock market closed on Thursday, as investors debate the sustainability of search in an AI-first world. Analysts expect EPS to be $1.51, up 29% year-over-year. Sales are expected to increase 13% to $78.7 billion.
Social Media: Watch your meta spending
Facebook parent company Meta Platforms reported late Wednesday. Analysts expect sales to rise 26% and profits to rise 95%. Analysts will focus on Meta’s capital expenditures and other costs amid its dual efforts to serve as an artificial intelligence leader and build the Metaverse.
Stock market returns overview
new core (nue) and cleveland cliffs (CLF) will both report after the close on Monday, marking the start of an important week for steel earnings. Nucor and Steel Dynamics both updated their first-quarter guidance in mid-March. Nucor’s outlook followed that guidance. Both stocks are performing well and are testing 10-week support. steel dynamics (STLD) reported late Tuesday.
Medpace (MEDP) will report first-quarter earnings late Monday and will hold a conference call Tuesday. TheStreet expects adjusted earnings of $2.47 per share on sales of $512 million. Profits are expected to increase by more than 15% as sales increased by about 18%. Medpace stock is forming a flat base.
general motors (GM) will report first-quarter results early Tuesday. Analysts expect earnings to fall 4% to $2.13 per share and revenue to rise 2% to $40.9 billion. GM stock is trading around $43.63 after falling more than 6% in April. ford (F) reported early Wednesday morning.
RTX (RTX) will report first-quarter results early Tuesday. Analysts at FactSet expect adjusted earnings to slow for the third consecutive quarter. Sales are expected to increase 7.3% to $18.47 billion. RTX stock is up more than 21% in 2024, with the aerospace and defense industry expanding beyond its cup-with-handle buy point after its mid-March breakout.
UPS (UPS) will report first-quarter earnings and earnings early Tuesday. Wall Street expects EPS to decline 41% to $1.30 and revenue to decline 5% to $21.84 billion. UPS’s profits have declined an average of 34% over the past three quarters. The stock price fell 4% in April.
united rentals (URI) will report first-quarter earnings and earnings later Wednesday. Wall Street expects EPS to rise 5% to $8.37 and revenue to decline more than 4% to $3.44 billion. Ahead of earnings, URI stock has fallen below its 50-day moving average, marking its worst week since August. However, the stock price has risen more than 9% since the beginning of the year.
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