Stock Market Action Plan: Tesla, Boeing, Google, Meta Headline A Big Earnings Week
Concerns of spiraling conflict between Iran and Iraq helped twist the past week’s stock market into a very mixed finish. As a result, IBD’s Stock Market Exposure guide downshifted to its lowest level at the end of the week.
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Investors will find no shortage of stimulus in the coming week, with a fusillade of heavyweight earnings rolling in from Microsoft (MSFT), Boeing (BA), Tesla (TSLA), Meta Platforms (META) and Alphabet (GOOGL), just to name a few. Economic news will also have a say, with a first look at Q1 GDP and some key inflation items.
Stocks To Watch: 5 Strong Stocks In A Weak Market
The stock market has struggled in recent days, but it’s a good time to build watchlists. A diverse collection of stocks — HubSpot (HUBS), Sea Ltd. (SE), Allstate (ALL), Cava Group (CAVA) and TransDigm (TDG) — have held up well, finding or bouncing from key support. Sea and Allstate have rebounded bullishly from their 50-day lines, with property and casualty insurer Allstate reclaiming a buy point. HubSpot reversed to retest support. Hot restaurant IPO Cava is testing its 50-day line and is still up 40% for the year after a huge move. Aerospace and defense leader TransDigm has traded tightly, down less than 3% for the week while letting the key moving averages catch up.
Economic Calendar: A First Look At Q1 Growth Data
The coming week of economic data will feature first-quarter GDP and the Fed’s primary inflation gauge, with updates for both March and Q1. Based on the already reported inputs, the forthcoming data likely won’t spell relief for the recent surge in interest rates. The GDP data, out Thursday, will provide the big picture. The first official estimate of real GDP is expected to show 2.1% growth in Q1, down from 3.4% in Q4. Along with GDP, the Bureau of Economic Analysis reports the core PCE price index. Personal spending and outlays for March are due Friday. The March upturn in retail sales suggests that consumer spending likely finished the quarter on a strong note.
Dow Notebook: A Big Week For Blue Chips
The Dow rolls into full reporting mode in the coming week with Visa (V), Intel (INTC), Caterpillar (CAT) and Merck (MRK) set to report, in addition to Boeing, Verizon (VZ), Microsoft and Chevron (CVX). Earnings estimates are evenly divided, with half expected to gain. Intel is seen swinging to a profit, from a loss a year ago. Caterpillar, the Dow’s second biggest advancer this year aside from Disney (DIS), is projected to see earnings slow to a 5% gain. By week’s end nearly half the Dow 30 will have reported, representing about 40% of the benchmark’s overall market capitalization.
Microsoft Profits Seen Up 15%
Microsoft, the largest stock among the Dow industrials by market capitalization, will release its fiscal third-quarter results after Thursday’s stock market close. Analysts polled by FactSet expect Microsoft to earn $2.82 a share, up 15% year over year, on sales of $60.8 billion, up 15%, in the March quarter. Analysts will pay close attention to the company’s cloud-computing businesses, including Azure infrastructure services and Office productivity software. Investors also are eager to hear about Microsoft’s progress in monetizing its generative artificial intelligence investments, such as its Copilot offerings. The stock, up almost 15% for the year through a March peak, dropped 5% this past week.
GE Aerospace Earns Its Wings
The GE ticker gets its first real show-off as pure-play GE Aerospace (GE) when it reports early Tuesday. FactSet points to a triple-digit EPS gain on an 11% rise in sales. The stock is up 48% this year, holding up well in a dicey market and trading just off its recent highs. Energy spinoff GE Vernova (GEV) reports on April 25. GE HealthCare (GEHC) reports April 30.
EV Market: Tesla Ghosts The Auto Trade
Tesla reports on Tuesday after the stock market close, with analysts and investors awaiting clarity on Elon Musk’s strategy on the robotaxi and the next-generation vehicle. Wall Street projects Q1 earnings will fall around 42%, with sales declining 4.5%.
Aerospace: Detailing Boeing’s Meltdown
Boeing reports Q1 results Wednesday as it works to mend production and mechanical issues with its commercial airplanes. FactSet expects Boeing to report a Q1 adjusted loss of $1.63 per share, widening from a loss of $1.27 per share last year.
Google Gets Its AI Report Card
Alphabet reports Q1 earnings after the stock market close Thursday amid investor debates about the sustainability of search in an AI-first world. Analysts predict EPS of $1.51, up 29% from a year earlier. Revenue is expected to climb 13% to $78.7 billion.
Social Media: Minding Meta’s Spending
Facebook parent Meta Platforms reports late Wednesday. Analysts project a 26% sales jump and a 95% rise in earnings. Analysts will be watching Meta’s capital expenditures and other costs, amid the dual initiatives of being an artificial intelligence leader and creating the metaverse.
Stock Market Earnings In Brief
Nucor (NUE) and Cleveland-Cliffs (CLF) both report after Monday’s close, kicking off a big week for steel earnings. Both Nucor and Steel Dynamics updated Q1 guidance in mid-March; Nucor’s outlook trailed its guidance. Both stocks have held up well and are testing 10-week support. Steel Dynamics (STLD) reports late Tuesday.
Medpace (MEDP) reports first-quarter earnings late Monday, with a conference call Tuesday. The Street projects adjusted earnings of $2.47 per share on $512 million in sales. Earnings are seen rising more than 15% as sales jump almost 18%. Medpace stock is forming a flat base.
General Motors (GM) reports first-quarter results early Tuesday. Analysts see earnings down 4% to $2.13 per share and sales at $40.90 billion, up 2%. GM stock is down more than 6% in April but is trading around a 43.63 entry. Ford (F) reports early Wednesday.
RTX (RTX) reports Q1 results early Tuesday. FactSet analysts see adjusted earnings slowing for a third straight quarter. Revenue is expected to increase 7.3% to $18.47 billion. RTX stock rallied more than 21% in 2024 and the aerospace and defense play is extended above a cup-with-handle buy point after a mid-March breakout.
UPS (UPS) reports first-quarter earnings and revenue early Tuesday. Wall Street expects EPS to sink 41% to $1.30 with sales decreasing 5% to $21.84 billion. UPS has averaged an earnings decline of 34% over the past three quarters. Shares are down 4% in April.
United Rentals (URI) reports first-quarter earnings and revenue late Wednesday. Wall Street forecasts EPS growing 5% to $8.37 with sales declining more than 4% to $3.44 billion. Ahead of earnings, URI stock had its worst week since August, falling below its 50-day moving average. But shares remain up more than 9% year to date.
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