Summary
- Only 15 SPX companies report earnings this week – but they are concentrated in the key retail and technology and semiconductor sectors.
- 457 out of 500 SPX companies have now reported 1Q earnings, for a cumulative beat of 5.1%, somewhat lower than the pace of recent quarters.
This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.
Summary
- Only 15 SPX companies report earnings this week – but they are concentrated in the key retail and technology and semiconductor sectors.
- 457 out of 500 SPX companies have now reported 1Q earnings, for a cumulative beat of 5.1%, somewhat lower than the pace of recent quarters.
Monday
- Take-Two Interactive Software (TTWO), maker of entertainment software games and accessories, gives another read on the extent to which people are moving off the couch and seeking fun and games out of the house. Its outlook could have knock-on implications for other companies counting of streaming to support growth and stock prices, such as NFLX and DIS.
Tuesday
- Retail heavyweights Walmart (WMT) and Home Depot (HD) should give us a read on whether shoppers are favouring brick and mortar sites or websites; and more importantly whether they are having trouble passing on higher costs to consumers.
Wednesday
- Lowes (LOW), Target (TGT) and TJX Co. (TJX) complete the major retailer lineup. The key question will be whether they confirm HD and WMT reports or offer any differing outlook.
- Bath and Body Work Inc. (BBWI) may indicate whether consumers are becoming more cautious about buying personal care products; and how a small player is navigating supply chain issues.
- Its also a busy day for tech, with Analog Devices (ADI), Cisco Systems (CSCO) and Synopsis Inc. (SNPS) reporting on semiconductors, communications equipment and software, respectively.
Thursday
- Applied Materials (AMAT), producer of semiconductor -making equipment, is at the epicenter of the semiconductor shortage. Is it part of the problem? Or is it other parts of the supply chain that are causing the semiconductor shortage?
- Specialty retailers Ross Stores Inc (ROST) and VF Corp (VFC) updates will shed more light on what consumers are spending money on.
Friday
The focus shifts to the agricultural sector when Deere & Co (DE) report. Given that many farmers around the world are reportedly cutting back on fertilizer because it is too expensive (even at the cost of lower yields) its international results and outlooks may be of particular interest.