May kicks off with a busy first week filled with earnings, monetary policy and a snapshot of the health of the economy.
Apple (AAPL) - Get Apple Inc. (AAPL) Report , the largest publicly traded company in the world, reports earnings on Tuesday afternoon in what has become a highlight of the reporting season. The company is seen as an industry bellwether and a measure of consumer sentiment, taking the pulse of how willing consumers are to spend on discretionary items.
The iPhone maker is expected to post earnings of $2.02 a share in its fiscal second quarter, a 6.4% increase from the same quarter a year earlier. Sales are also expected to post growth, gaining 4.8% to $52.99 billion. First-quarter sales growth broke a worrisome losing streak after three quarters of revenue declines.
Of the 57% of S&P 500 companies that have reported so far, 77% have exceeded analysts' earnings estimates, above the 64% historical average, according to Thomson Reuters. Nearly 65% of companies have bested revenue estimates, edging past the historical average of 59%.
The trend of weaker revenue could continue in the coming week with a particular emphasis on multinationals in the consumer and tech space.
Consumer and media earnings include Archer Daniels (ADM) - Get Archer-Daniels-Midland Company Report , Caesars Entertainment (CZR) - Get Caesars Entertainment Corporation Report , Coach (COH) , CVS Health (CVS) - Get CVS Health Corporation Report , Charter Communications (CHTR) - Get Charter Communications, Inc. Class A Report , Denny's (DENN) - Get Denny's Corporation Report , Etsy (ETSY) - Get Etsy, Inc. Report , Hanesbrands (HBI) - Get Hanesbrands Inc. (HBI) Report , Match Group (MTCH) - Get Match Group, Inc. Report , Mondelez (MDLZ) - Get Mondelez International, Inc. Class A (MDLZ) Report , Potbelly (PBPB) - Get Potbelly Corp. Report and Weight Watchers (WTW) - Get Weight Watchers International, Inc. Report on Tuesday; Cheesecake Factory (CAKE) - Get Cheesecake Factory Incorporated Report , Clorox (CLX) - Get Clorox Company Report , Estee Lauder (EL) - Get Estee Lauder Companies Inc. Class A Report , HSN (HSNI) , Kraft Heinz (KHC) - Get Kraft Heinz Company (KHC) Report , Reynolds American (RAI) , Tesla (TSLA) - Get Tesla Inc Report , Time Warner (TWX) , Yum! Brands (YUM) - Get Yum! Brands, Inc. (YUM) Report and Energizer (ENR) - Get Energizer Holdings Inc Report on Wednesday; AMC Networks (AMCX) - Get AMC Networks Inc. Class A Report , CBS (CBS) - Get CBS Corporation Class B Report , Dunkin Brands (DNKN) - Get Dunkin' Brands Group, Inc. Report , El Pollo Loco (LOCO) - Get El Pollo Loco Holdings Inc Report , Hyatt (H) - Get Hyatt Hotels Corporation Class A Report , Kellogg (K) - Get Kellogg Company (K) Report , Shake Shack (SHAK) - Get Shake Shack, Inc. Class A Report , Herbalife (HLF) - Get Herbalife Nutrition Ltd. Report and Viacom (VIAB) - Get Viacom Inc. Class B Report on Thursday; and Revlon (REV) - Get Revlon, Inc. Class A Report on Friday.
In tech and telecom earnings, AdvancedMicro Devices (AMD) - Get Advanced Micro Devices, Inc. Report and Broadsoft (BSFT) will report on Monday; FireEye (FEYE) - Get FireEye, Inc. Report , HCP (HCP) - Get HCP, Inc. Report , GoDaddy (GDDY) - Get GoDaddy, Inc. Class A Report , WebMD (WBMD) and Frontier Communications (FTR) - Get Frontier Communications Corporation Class B Report on Tuesday; Cirrus Logic (CRUS) - Get Cirrus Logic, Inc. Report , Facebook (FB) - Get Facebook, Inc. Class A Report , Fitbit (FIT) - Get Fitbit, Inc. Class A Report , Garmin (GRMN) - Get Garmin Ltd. (GRMN) Report , IAC (IACI) , Sprint (S) - Get SENTINELONE, INC. Report , Groupon (GRPN) - Get Groupon, Inc. Report , Square (SQ) - Get Square, Inc. Class A Report , Tableau Software (DATA) - Get Tableau Software, Inc. Class A Report and 3D Systems (DDD) - Get 3D Systems Corporation Report on Wednesday; and Activision Blizzard (ATVI) - Get Activision Blizzard, Inc. Report and Zynga (ZNGA) - Get Zynga Inc. Class A Report on Thursday.
In oil, materials and industrials earnings, Chemours (CC) - Get Chemours Co. Report and Diamond Offshore (DO) - Get Diamond Offshore Drilling, Inc. Report will report on Monday; BP (BP) - Get BP p.l.c. Sponsored ADR Report , Arch Coal (ACI) - Get Albertsons Cos. Inc. Report , Anadarko Petroleum (APC) - Get Anadarko Petroleum Corporation Report , ConocoPhillips (COP) - Get ConocoPhillips Report , First Solar (FSLR) - Get First Solar, Inc. Report and FMC Corp (FMC) - Get FMC Corporation Report on Tuesday; Murphy Oil (MUR) - Get Murphy Oil Corporation Report , Southern Co. (SO) - Get Southern Company Report , Transocean (RIG) - Get Transocean Ltd. Report , Williams Cos. (WMB) - Get Williams Companies, Inc. Report and Yamana Gold (AUY) - Get Yamana Gold Inc. Report on Wednesday; and Alleghany (ATI) - Get Allegheny Technologies Incorporated Report , Chesapeake Energy (CHK) - Get Chesapeake Energy Corporation Report , Marathon Oil (MRO) - Get Marathon Oil Corporation (MRO) Report and Statoil (STO) on Thursday.
Health and biotech earnings this week include Cardinal Health (CAH) - Get Cardinal Health, Inc. Report and Tenet Health (THC) - Get Tenet Healthcare Corporation Report on Monday; Aetna (AET) , Gilead Sciences (GILD) - Get Gilead Sciences, Inc. (GILD) Report , Becton Dickinson (BDX) - Get Becton, Dickinson and Company Report , Merck (MRK) - Get Merck & Co., Inc. (MRK) Report and Pfizer (PFE) - Get Pfizer Inc. Report on Tuesday; Humana (HUM) - Get Humana Inc. (HUM) Report on Wednesday; and Cigna (CI) - Get Cigna Corporation Report on Friday.
Finance earnings include Loews (L) - Get Loews Corporation (L) Report on Monday; Genworth Financial (GNW) - Get Genworth Financial, Inc. Class A Report , MasterCard (MA) - Get Mastercard Inc. (MA) Report , Western Union (WU) - Get Western Union Company Report and Allstate (ALL) - Get Allstate Corporation Report on Tuesday; AIG (AIG) - Get American International Group, Inc. Report , Automatic Data Processing (ADP) - Get Automatic Data Processing, Inc. Report , Metlife (MET) - Get MetLife, Inc. (MET) Report and Western Union (WU) - Get Western Union Company Report on Wednesday; and HSBC (HSBC) - Get HSBC Holdings PLC Sponsored ADR Report on Thursday.
The U.S. jobs report for April, to be released Friday, dominates the economic calendar in the coming week. Analysts anticipate 193,000 jobs to have been added to the U.S. economy in April and for the unemployment rate to hold at 4.6%. Average hourly earnings are expected to grow 0.3%. The U.S. added 235,000 and 98,000 jobs over February and March, respectively, the first full two months under Donald Trump's economy.
Also on the economic calendar in the coming week: personal income and outlays for March, the PMI manufacturing index and the ISM Manufacturing Index for April and construction spending for March will be released on Monday; the ADP employment report for April and the ISM non-manufacturing index for April on Wednesday; international trade for March, productivity and costs for the first quarter and factory orders for March on Thursday.
The Federal Reserve will convene for its semi-monthly meeting on Tuesday with an announcement set for Wednesday afternoon. Members of the Federal Open Market Committee will assess recent mixed data and make a decision on interest rates. The majority of analysts do not expect a change in interest rates.
The first week of the new month could test the market wisdom of "sell in May and go away." The saying refers to a general downward trend each May, though that hasn't held true in seven of the past 10 years.
"The causa proxima for the demise of that axiom will likely be earnings as the secular bull market has transitioned from an interest rate, to an earnings-driven, secular bull market; and this quarter's earnings are no exception," said Raymond James' Jeffrey D. Saut.
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