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The upcoming release of the U.S. inflation report for March is poised to influence investors’ focus on interest rates. Economists predict a 0.3% month-over-month increase in the Consumer Price Index (CPI) and a 3.5% year-over-year rise. BNP Paribas suggests that a moderation in shelter inflation could instill confidence in a potential rate cut by the Federal Open Market Committee (FOMC) in June. On the other hand, robust non-shelter services inflation poses a risk that overall inflation may remain resilient, potentially delaying the Fed’s rate cut beyond June. Seeking Alpha’s Investing Group Leader, Chris Lau, anticipates that unless there is a significant rise in CPI, it is unlikely to impact the Federal Reserve’s dovish stance.
Towards the end of the week, major companies like JPMorgan Chase (JPM), Wells Fargo (WFC), BlackRock (BLK), and Citigroup © are set to report their earnings. Analysts have observed a strong comeback in investment banking activities in Q1, with notable increases in high yield issuance, leveraged loan syndications, and equity underwriting volumes. However, there has been a lackluster demand for corporate loans. Additionally, Delta Air Lines (DAL) and Constellation Brands (STZ) are also scheduled to announce their earnings next week. In the tech sector, events hosted by Intel (INTC), Google (GOOGL), and Marvell Technology (MRVL) are expected to reignite enthusiasm around artificial intelligence (AI) applications and capabilities.
Earnings Schedule for the Week:
- Monday, April 8: Lotus Technology (LOT)
- Tuesday, April 9: Neogen (NEOG), PriceSmart (PSMT), Tilray Brands (TLRY)
- Wednesday, April 10: Delta Air Lines (DAL), Applied Digital (APLD), Rent the Runway (RENT)
- Thursday, April 11: Constellation Brands (STZ), CarMax (KMX), Fastenal (FAST)
- Friday, April 12: JPMorgan Chase (JPM), Wells Fargo (WFC), BlackRock (BLK), Citigroup ©
Key Highlights:
- Volatility Watch: TeraWulf (WULF) and Aurora Cannabis (ACB) are seeing elevated options trading volume. Stocks like AltC Acquisition (ALCC), SIGA Technologies (SIGA), and Kulr Technology Group (KULR) are identified as overbought, while Disc Medicine Inc (IRON), Amylyx Pharmaceuticals (AMLX), and Humana (HUM) are considered oversold.
- IPO Watch: Companies like Neonc Technologies (NTHI), UL Solutions (ULS), and Cleancore Solutions (ZONE) are expected to launch their IPOs soon. Rubrik (RBRK) is anticipated to file for its IPO, and Birkenstock (BIRK) will be closely monitored as its IPO lockup period expires on April 8.
- Dividend Watch: Companies projected to increase their quarterly dividend payouts include FedEx (FDX), Constellation Brands (STZ), HB Fuller (FUL), Qualcomm (QCOM), and Aon (AON).
- Delta Earnings Preview: Delta Air Lines (DAL) is expected to report Q1 earnings with revenue of \(12.9B and EPS of \)0.36. The company’s performance and outlook may impact the airline industry significantly.
- Tech Events: Intel (INTC), Google (GOOGL), and Marvell Technology (MRVL) are hosting key events focused on AI applications and market opportunities.
- Spinoff Watch: Companies like Studio Business, Sporting Products, Eviden, and Centuri Group are set to finalize spinoff plans in Q2, introducing new stocks for potential trading. A.P. Moller – Maersk has scheduled the first trading day for Svitzer Group on April 30.
