What You Need to Know for the Big Week Ahead

04/25/2016 10:00 am EST

Focus: STOCKS

Michael Berger

President & Founder, Technical420.com

The market is prepared to digest a flurry of economic data and earnings reports after several high-profile stocks reported disappointing earnings last week. Michael Berger, Associate Editor of MoneyShow.com, highlights some of the important pieces of economic data and earnings reports set to be released this week.

This is a big week for the stock market as several major companies prepare to report earnings and a flurry of economic data is set to be released.

The Fed meets on Tuesday and Wednesday, and the market does not expect any action to be taken on interest rates.

Central Bank May Increase Overall Market Volatility

The Bank of Japan will meet on Thursday and there is uncertainty with regard to what Japan is going to do. The last time the bank took action, it announced negative yields. There is speculation that the BOJ could announce more asset purchases and take steps to apply negative rates to bank loans.

United States first quarter GDP will also be announced on Thursday and the initial estimate is expected to be relatively lackluster, but there is a wide range of uncertainty in the advance numbers.

Some of the other reports scheduled to be released this week include:

  • Monday: new home sales
  • Tuesday: durable goods and consumer confidence
  • Wednesday: pending home sales and FOMC statement
  • Thursday: Initial claims and housing vacancies
  • Friday: personal income and spending

Earnings Season Heats Up

Last week, the market saw a number of high-profile companies report first quarter earnings that came in below expectations.

Alphabet (GOOGL), International Business Machines Corporation (IBM), Microsoft (MSFT), and Caterpillar Inc. (CAT) were just some of the companies that reported disappointing earnings.

This week, the market will digest first quarter earnings reports from several market leaders like Apple Inc. (AAPL), Halliburton (HAL), 3M Company (MMM), Facebook (FB), Boeing (BA), Nasdaq (NDAQ), Comcast (CMCSA), and many more.

Expect Mixed Results

We expect to see mixed earnings results reported this week and commentary from the Federal Reserve may just add fuel to the fire.

Policymakers are widely expected to leave policy unchanged, but investors will be looking for any significant changes in the wording of the policy statement (and that’s all we’ll get this time – no revised Fed forecasts or Yellen press conference). 

Investors are likely to be more interested in the growth prospects for the second quarter, and for that, we’ll have to wait for the following week’s data (i.e. ISM surveys and employment report).

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