Here's your Investing Action Plan: what you need to know for the week ahead. First quarter earnings season starts off with not many companies reporting, but they are important. Among them: JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC). First Republic (FRC) and PNC Financial (PNC) kick off bank earnings, with investors and analysts likely to pay close attention to deposits, unrealized losses and much more amid a financial crisis that is "not yet over," according to JPMorgan CEO Jamie Dimon. Delta Air Lines (DAL) and UnitedHealth (UNH) are the first airline and health insurer, respectively, to report for the first quarter.
Meanwhile, the CPI and PPI inflation reports for March will come out, as well as retail sales and other key economic data.
XMedical Stocks Deserve Close Exam
With many tech stocks struggling in recent days amid rising recession risks, medical stocks are moving up. With government and insurance covering so much of health care spending, medical stocks are relatively insulated from economic downswings. Intuitive Surgical (ISRG), Vertex Pharmaceuticals (VRTX), Merck (MRK), Eli Lilly (LLY) and Shockwave Medical (SWAV) are five names to watch. ISRG stock is flirting with an early entry while drug giant MRK stock arguably is actionable now. LLY stock and Vertex are moving toward buy points. Shockwave is faster growing but more speculative. SWAV stock is rebounding but hitting resistance at the 200-day line. A decisive move above that level could offer an aggressive entry.
Insulet (PODD), UnitedHealth (UNH) and Lantheus (LNTH) are among many other medicals worth watching.
Inflation Data In Focus
The consumer price index for March, out Wednesday at 8:30 a.m. ET, will take center stage in the coming week. Meanwhile, the Fed assesses whether inflation pressures are still too intense to allow for a rate-hike pause at the May 3 meeting. The data may not provide a clear-cut answer. Economists expect a 0.3% rise for the overall CPI, lowering the annual inflation rate to 5.2% from 6%. But core inflation is stickier. The Street expects core CPI, stripping out food and energy, to rise 0.4% on the month. That would lift the annual core inflation rate to 5.6% from 5.5% in February.
Thursday's initial jobless claims, out at 8:30 a.m., may also be a market mover. The Labor Department's revised seasonal adjustment methodology now shows claims are far higher than previously reported.
Analysts project retail sales, out Friday at 8:30 a.m., will dip 0.4%. Forecasts are for industrial production, out at 9:15 a.m., to rise 0.3%.
JPMorgan, Other Bank Earnings Due Amid Troubles
Banks begin reporting earnings results next week that will provide key insight into deposits and loan levels, bond losses and their outlook. Meanwhile, the financial sector navigates the fallout from March. Giants JPMorgan (JPM), Wells Fargo (WFC) and Citigroup (C) report on Friday. So do superregional PNC Financial Services (PNC) and embattled California-focused First Republic Bank (FRC). Wall Street expects JPMorgan and Wells Fargo earnings will jump 24% and 28.%, respectively, as they were relatively shielded from the banking panic. Analysts see Citi earnings tumbling 16% as investment banking operations continue to struggle. PNC fared better than other major regionals in March and its earnings are forecast surging 14% to $3.68 per share. There's a wide forecast for the heavily-battered First Republic, which received $100 billion in Fed loans and emergency deposits in March. The FactSet consensus projects earnings will tank 49.5% to $1.01 per share, with estimates ranging from 16 cents to $1.50. But the focus may be on deposit levels and any guidance.
Delta Air Growth Seen Continuing
Delta Air Lines (DAL) announces first quarter 2023 financials early Thursday. Analysts expect the air carrier to see earnings jump to 32 cents per share, up from a $1.23 per share loss a year ago. That would be the fourth straight quarterly profit. Revenue is forecast to grow 29% to $12.03 billion. Investors will be looking for clues about the outlook for airlines and travel. DAL stock is trying to bounce after plunging last month with other airlines.
UnitedHealth Earnings Ahead
UnitedHealth Group kicks off the Q1 earnings season for the managed care companies group before Friday's open. Analysts expect 12% growth for EPS and sales. Ahead of earnings, UNH stock has rallied to a three-month high on positive news about Medicare Advantage rates for 2024.
In Brief
Fastenal (FAST) reports for the first quarter early Thursday. Earnings are likely to grow 7% to 50 cents per share as revenue rises 9% to $1.855 billion. That would mark the fourth straight quarter of slowing sales growth for the industrial supplies distributor.
Taiwan Semiconductor Manufacturing (TSM) will report its March and first quarter sales on Monday. The chip foundry plans to release full first quarter results on April 20. Analysts see earnings dipping 8% year over year in Q1 with sales rising 2%.
YOU MAY ALSO LIKE:
Why This IBD Tool Simplifies The Search For Top Stocks
Best Growth Stocks To Buy And Watch
IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today
