The week ahead is set to be defined by earnings from the mega-tech names in the US, which are due to report. In fact, one-third of the S&P 500 will report earnings this week, with the local share market poised for a cautious start this morning. High-profile economic data out of the US, as well as the latest on American tax proposals, will also sway market sentiment.
Economic calendar and news
Australian inflation data will headline the local economic calendar over the coming days. Expectations point towards the largest year-on-year reading since before the pandemic, however, the result will be skewed by a weak base result in the comparable period a year ago. Export and import prices, as well as private sector credit, will also be on show.
The US will be front and centre this week as a deluge of economic readings are released, and several key announcements are detailed. Starting tonight, durable goods orders for March will be published, which are expected to show a rebound compared with the first slump in 10 months that was seen in February.
Home price data and a reading into consumer confidence will be released on Tuesday evening, before the latest interest rate decision from the Federal Reserve follows on Thursday morning Sydney-time, where Jerome Powell’s comments will be scrutinised for views on inflation and accommodative monetary policy.
Later that day, when the US market opens for its Thursday trading session, first-quarter GDP data will be announced. Economists believe the world’s largest economy grew around 6.5% versus the final quarter of last year.
The week will come to a conclusion with personal income and spending data, with both expected to show a volatile reading following a slump last month, and the highly-important personal consumption expenditure report. As the Fed’s preferred measure of inflation, the year-on-year reading is tipped to come in at 1.8%, below the Fed’s target of 2%, however, a surprise result could unsettle the market.
President Biden will also unveil further information on the current administration’s ‘American Families Plan’, including taxes expected to fund the proposal.
Stocks on watch
Big tech is set to steal the headlines this week, with expectations high for the market’s biggest names including Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), Tesla (NASDAQ: TSLA) and Facebook (NASDAQ: FB).
They won’t be the only names under the microscope, as a number of bellwether stocks like Boeing (NYSE: BA), Caterpillar (NYSE: CAT), McDonald’s (NYSE: MCD), Ford (NYSE: F) and Advanced Micro Devices (NASDAQ: AMD) also hand down earnings. The watch-point for these stocks will be commentary surrounding supply chain disruptions, as well as any flow-on impact from rising input costs.
Locally, the last batch of quarterlies will come from a long list of names, particularly small-cap players. However, there will also be updates from the likes of Fortescue Metals Group (ASX: FMG) and Newcrest Mining (ASX: NCM), as well as supermarket duo Woolworths (ASX: WOW) and Coles (ASX: COL).
Elsewhere, new yearly lows for the likes of A2 Milk (ASX: A2M) and TPG (ASX: TPG) may attract some interest from onlookers. However, that is in stark contrast to soaring names like Commonwealth Bank (ASX: CBA), Macquarie Group (ASX: MQG), Seek (ASX: SEK), Boral (ASX: BLD), Premier Investments (ASX: PMV) and Reliance Worldwide Corporation (ASX: RWC), which each posted a record last week.
Junior mining explorers Black Canyon (ASX: BCA) and Albion Resources (ASX: ALB) are both slated to list this week after completing their IPOs, each raising $5 million. Black Canyon is pencilled in for a Wednesday debut, while Albion Resources is locked-in for Friday.
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