The Week Ahead On Wall Street

Economic Data

There are no major economic reports scheduled for the first three days of the week.

On Thursday the US Labor Department will release continuing jobless claims and initial jobless claims for the previous week. For the week which ended April 10, initial jobless claims fell from 769,000 to 576,000. Investors will be watching to see if these declines continue as the economy reopens and people return to work.

Also on Thursday, the National Real Estate Association will release existing home sales for March. This data point measures sales volume for single-family-homes. Existing home sales fell by 6.22 million in February.

On Friday, the IHS Markit’s Purchase Manufacturing PMI Flash number for April will be published. The Manufacturing PMI measures the health of the economy by tracking US manufacturing. Any flash number above 50 signals improving economic conditions, while anything below 50 means conditions are worsening. The Flash Manufacturing PMI for March was 59.1. Markit also releases its Flash Purchasing Services PMI number for April on Friday.

Earnings Reports

Coca-Cola (KO) reports quarterly earnings today. The beverage company’s sales have suffered during the pandemic because of canceled concerts and sporting events as well as restaurant and movie theater closures. There are also concerns that Coca-Cola could face as much as $12 billion in tax liabilities stemming from a dispute with the IRS. Uncertainty about Coca-Cola’s pandemic recovery and potential tax exposure has been weighing on its shares.

Netflix (NFLX) will share its latest results tomorrow. The streaming giant added 15.8 million new subscribers during the first quarter of last year as consumers stuck at home looked for ways to pass time. Netflix’s growth may be muted with shutdown restrictions easing and movie theaters reopening. Netflix expects to add 6 million new subscribers in the first quarter of this year—down from 8.5 million in the previous quarter.

Chipotle Mexican Grill (CMG) reports quarterly results on Wednesday. Sales at brick-and-mortar restaurants are increasing as more people get COVID-19 vaccinations and social distancing restrictions ease. To capitalize on these trends, Chipotle is adding new items to its menu and expanding its footprint. Chipotle is also continuing to build its online ordering business. Chipotle invested in Nuro last month, an autonomous tech company, to grow its delivery network.

Snap (SNAP) reports quarterly earnings on Thursday. The social media platform is popular with younger users, which is a coveted demographic for advertisers. At the end of 2020, Snap had more than doubled the advertisers on its platform and posted daily active user growth of 21.6%. Shares of Snap are up more than 350% over the past year. Investors will be paying close attention to Snap’s growth in the first quarter to see if its momentum is continuing.

American Express (AXP) reports quarterly earnings on Friday. The credit card company is benefiting from an increase in consumer spending thanks to the recent round of stimulus checks. With mass availability of COVID-19 vaccinations, cities are easing shutdown restrictions which will likely continue to drive spending on travel, entertainment, and dining.

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