Important points
- Economists are watching the March release of the consumer price index (CPI) for clues about the direction of inflation.
- Major banks such as JPMorgan Chase, Wells Fargo, and Citigroup will announce their first quarter results.
- Investors will also be keeping an eye on Federal Reserve speakers, Fed minutes, and the results of the Consumer Sentiment Survey.
This week’s key data will be the latest inflation statistics and first-quarter earnings reports from major banks.
Consumer Price Index (CPI) inflation data for March will be released on Wednesday, and Federal Reserve officials are closely monitoring prices as they consider future rate cuts. Several Fed officials are expected to speak this week. Market watchers can also look at the Federal Open Market Committee (FOMC) minutes and the results of the Michigan Consumer Sentiment Survey this week.
The 2024 first-quarter earnings season officially kicks off this week with the nation’s largest banking groups, including JPMorgan Chase & Co. (JPM), Wells Fargo (WFC) and Citigroup (C), reporting their results.
Monday, April 8th
Tuesday, April 9th
- NFIB Small Business Optimism Index (March)
- WD-40 (WDFC) and Tilray Brands (TLRY) Report your earnings
Wednesday, April 10th
- Consumer price index (March)
- Wholesale inventory (March)
- March Federal Open Market Committee (FOMC) Minutes
- US monthly federal budget (March)
- Chicago Fed President Austan Goolsby make a statement
- Delta Airlines (DAL) and Applied Digital (APLD) release revenue
Thursday, April 11th
- Number of first unemployment insurance claims (April 5th)
- Producer price index (March)
- New York Fed President John C. Williams Atlanta Fed President Rafael Bostic and make a statement
- Constellation Brand (STZ)Fastenal (FAST)CarMax (KMX) Report your earnings
Friday, April 12th
- Michigan Consumer Confidence Index (April preliminary figures)
- Atlanta Fed President Rafael Bostic Mary C. Daley, President of the Federal Reserve Bank of San Francisco make a statement
- JPMorgan Chase (JPM)Wells Fargo (WFC)Black Rock (BLK)Citigroup (C)State Street (STT)and progressive (PGR) Report your earnings
Bank report announces first quarter earnings
Financial reports for the first quarter of 2024 begin to be released this week, culminating on Friday with a blitz of bank earnings highlighting sectors that showed some weakness at the end of 2023.
Investors will focus on JPMorgan Chase’s Friday results as the largest U.S. bank continues to deliver strong net interest income following a report of $24.1 billion, a 19% increase last quarter. I would check to see if. Wells Fargo predicted in its last earnings call that interest income could decline in 2024, based on expectations that the U.S. Federal Reserve will cut interest rates at some point this year.
BlackRock’s report comes after the company announced it would expand into infrastructure with the $12.5 billion acquisition of Global Infrastructure Partners. Citigroup’s earnings will show whether it continues to struggle with expenses after posting a $1.8 billion loss last quarter amid the company’s restructuring efforts.
Delta Air Lines is scheduled to report March quarter results on Wednesday after Morgan Stanley analysts named it one of the top stocks for 2024. Corona beer maker Constellation Brands will report on Thursday, while WD-40 and marijuana distributors will report on Thursday. Tilray Brands will release its earnings report on Tuesday.
Also this week, healthcare provider PACS Group and product testing company UL Solutions are each expected to announce pricing for their initial public offerings (IPOs).
CPI measurements showing the latest inflation trends
After months of rising indicators, investors will be watching Wednesday’s Consumer Price Index (CPI) release, which will give economists their first look at inflation in March.
Rising gasoline and home prices pushed up the CPI in February, and the wholesale-focused Producer Price Index (PPI) showed signs that prices may remain high. The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditure Index, also rose in February. If inflation continues to trend higher, Federal Reserve officials could become more hesitant to cut interest rates.
Following the midweek CPI release, the Bureau of Labor Statistics is scheduled to release its March PPI report on Thursday, in which wholesale prices could give economists clues about trends in consumer prices.
Friday’s inflation-related Michigan Consumer Confidence Index also shows how households view future price movements and could influence the Fed’s actions on interest rates.
Several Federal Reserve officials are scheduled to speak throughout the week, including Chicago Fed President Austan Goolsby, Atlanta Fed President Raphael Bostic and San Francisco Fed President Mary C. Daley.
Investors will also be keeping an eye on the FOMC minutes, which will be released Wednesday afternoon, which will provide more insight into how Fed members view the economy. On Tuesday, the National Federation of Independent Business (NFIB) will report the results of its survey of small business owners.
