Investing.com – The first quarter earnings season will begin on Wall Street next week. While analysts expect fairly strong results, most will be watching what companies have to say for the current quarter and the rest of the year given their prospects for faster economic growth.
On the other hand, the US CPI and retail sales reports will be the biggest data of the week in the economic calendar.
Global financial markets will also pay attention to the speeches of a group of Fed officials, including Chairman Jerome Powell.
On the other hand, in Asia, China will be the first major economy to share the highly anticipated GDP figures and first quarter growth data.
Before starting the week, Investing.com has listed for you developments that are likely to affect the markets:
1.US 1Q wins season begins
First quarter earnings season on Wall Street, JPMorgan Chase (NYSE :), Goldman Sachs (NYSE 🙂 and Wednesday Wells Fargo It will start with the (NYSE 🙂 reports.
Bank of America (NYSE:), Citigroup (NYSE 🙂 and Blackrock (NYSE 🙂 Thursday and Morgan Stanley (NYSE 🙂 will share on Friday.
Other big names to report this week include UnitedHealth (NYSE :), Delta Air Lines (NYSE :), PepsiCo (NASDAQ 🙂 and Rite Aid (NYSE :).
Overall, the first quarter results are expected to have increased by about 25% compared to the same period of the previous year, according to Refinitiv. This will be the biggest quarterly increase since the third quarter of 2018, when tax cuts under former President Donald Trump led to an increase in profit growth.
While finance names are expected to be among the top earners with 75.6% year on year, material makers are thought to have increased by 45.4%.
2. USA CPI data
The Ministry of Commerce will share the CPI figures for March.
CPI is expected to have grown compared to last month and the previous year. If these predictions are approved, it will constitute the fastest increase in eight months.
Core inflation, excluding the cost of food and fuel, estimates for a month-on-year growth of more than 1.3% seen in February.
Rising inflation expectations supported first-quarter sales in the Treasury, which brought yields to pre-pandemic highs.
3.US retail sales
On Thursday, the Ministry of Commerce will share its March retail sales report.
The common prediction is that the report will show an increase in retail sales. In February, the report showed the biggest loss since April 2020, down 3%.
Excluding the automobile industry, sales are expected to have increased after a 2.7% decline in the previous month.
In addition, this week’s calendar will include surveys of unemployment claims, building permits, housing starts, and manufacturing conditions for the Philadelphia and New York regions. Preliminary readings of the University of Michigan consumer sentiment index are also on the agenda.
4. Fed speakers
This week’s Fed speakers will stand out as investors look for clues on interest rates.
Will discuss the economy in an interview with CBS’s “60 Minutes” program on Sunday night. He will also speak at an event of the Washington Economy Club on Wednesday.
Fed Chairman reiterated that any inflation that will occur will be temporary and the central bank will maintain expansionary policies for a long time.
Fed Vice President Richard Clarida, New York Fed President John Williams (NYSE 🙂 and San Francisco Fed President Mary Daly will also be in the limelight with their speeches.
5.China’s 1Q GDP data
China will share its first quarter GDP data on Friday morning.
The data are expected to show growth in the first quarter of 2021 compared to the previous year. The previous quarter’s pace was 6.5%.
Apart from the GDP report, the Asian country will also share the March trade balance, industrial production, retail sales, unemployment and fixed asset investment data.
The Chinese economy has shown signs of significant progress in recent months: its activities have risen to pre-pandemic levels, thanks to an increase in global manufacturing and a large recovery in domestic spending.
– This news has the contribution of Reuters.