Next week, some of the largest companies in the world will report earnings, including big tech companies Apple, Amazon, Google parent Alphabet, Microsoft, and Meta Platforms. We’ll get the latest data on home prices on Tuesday, with the Case-Shiller National Home Price Index for February, along with new and pending home sales for March. On Thursday, the Bureau of Economic Analysis (BEA) will release its advance estimate for first-quarter gross domestic product (GDP). Also, we can expect consumer sentiment readings from the Conference Board and University of Michigan. On Friday, we’ll receive a key update on inflation with the Personal Consumption Expenditures (PCE) Price Index—the Federal Reserve’s preferred inflation gauge—for March.
Earnings From Big Tech
We’ll get earnings from some of the world’s biggest companies next week, including big tech firms Apple, Amazon, Google parent Alphabet, Microsoft, and Meta Platforms. Other noteworthy companies scheduled to report earnings will include Coca-Cola Company, McDonald’s, Visa, Mastercard, Verizon, T-Mobile, UPS, Raytheon, GE, Boeing, ADP, Intel, ExxonMobil, and Chevron, among others.
Just under one-fifth of S&P 500 companies have reported earnings so far. Of these, 76% have reported EPS above estimates, in line with the trailing five-year average of 77%, according to FactSet.1 However, the information technology sector is one of six sectors expected to post a year-over-year decline in earnings. Google parent Alphabet is expected to report net income fell 16% in the first quarter as revenue from cloud services grew at the slowest pace since 2016. A slowdown in cloud growth could also negatively impact Microsoft, which is expected to report earnings unchanged from a year ago.
First Quarter GDP Release
On Thursday, the Bureau of Economic Analysis (BEA) will issue its advance estimate for first-quarter gross domestic product (GDP). The U.S. economy likely grew at a seasonally-adjusted annual rate of 2% in the first three months of the year, slowing from 2.6% in the fourth quarter of 2022. The Conference Board forecasts full-year GDP growth of 0.7% this year, down from 2.1% last year, as persistent inflation and the Federal Reserve’s hawkish monetary policy weighs on growth.2
The Fed's Preferred Inflation Gauge
On Friday, the BEA will release the latest Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge. Prices are projected to have risen 0.3% last month, matching February’s pace. They were likely up 4.5% year-over-year, which would mark the slowest annual gain since the summer of 2021. Core prices, which exclude volatile food and energy costs, also likely rose 0.3% from February and 4.5% over a 12-month period.