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Busy Week Hoping to Shake Some Life into Markets

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Monday, April 22nd, 2024

We again have an eventful week for the stock market. As the S&P 500 tries to shake its three-week losing streak, we see sky-high valuations and record-high closings have given way to a more concerned, meditative trading sentiment. Much of what concerns us will have been addressed by the end of the week, including important economic reports and Q1 earnings season hitting a higher gear.

This will be the heaviest week of Q1 earnings so far. Among those important companies reporting this week, we are highlighted after the bell throughout the week with marquee tech names like Microsoft (MSFT - Free Report) , Meta Platforms (META - Free Report) , Alphabet (GOOGL - Free Report) and Tesla (TSLA - Free Report) . But we’ll also see UPS (UPS - Free Report) , PepsiCo (PEP - Free Report) , General Motors (GM - Free Report) and Visa (V - Free Report) — and that’s just on Tuesday!

In addition, new inflation metrics hit the tape. These include S&P Flash PMI for Services and Manufacturing, New and Pending Home Sales, Durable Goods Orders, Trade Balance, Retail/Wholesale Inventories, the first look at Q1 GDP and Friday’s comprehensive Personal Consumption Expenditures (PCE) report. As we Fed followers already know, PCE data is the most closely followed by members of the Federal Open Market Committee (FOMC), whose next meeting on monetary policy begins a week from tomorrow.

Thus, we’ll know much more by Friday afternoon than we do this morning. Considering the negative sentiment that has bled into market activity of late, we could use some advanced knowledge on earnings results and economic prints in order to help map out our future course through the 2024 markets. That even goes for news we may find less than savory; knowing is still better than not knowing. And who knows? Maybe things are better than we currently suspect.

Telecom leader Verizon (VZ - Free Report) is out with Q1 numbers ahead of today’s open. Earnings of $1.15 per share outpaced the Zacks consensus by 3 cents (though still below the $1.20 reported in the year-ago quarter). However, revenues of $32.98 billion missed estimates by -1%. That said, pre-market shares are bidding up on the news, as rate hikes on wireless services (+3.3% year over year to $19.5 billion) are paying off for the company. Pre-market trading is currently up more than +2%. For more on VZ’s earnings, click here.

And Zions Bancorp (ZION - Free Report) shares are flat on its quarterly report’s release. This comes even as the regional bank — West and Southwest regions of the U.S., based in Utah — missed on its bottom line by 4 cents to 96 cents per share. This breaks a string of two-straight quarters of earnings beats, and now depicts the third miss in the past five quarters for the Zacks Rank #3 (Hold)-rated stock.

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