First-quarter earnings season is set to continue next week as more large U.S. banks report earlier in the week, setting the tone for markets.
So far, Citigroup (C) , JPMorgan (JPM) and Wells Fargo (WFC) reported strong earnings, beating expectations as investors anticipate a strong earnings season, despite geopolitical concerns regarding Russia, Syria and North Korea.
"Revenue and earnings are expected to trend upwards," Terry Sandven, U.S. Bank Wealth Management chief equity strategist, wrote in a note. "We continue to look for equities to grind higher as earnings trend upwards."
Sandven added that Bloomberg estimates first quarter revenue to rise 9% and earnings 11%, while earnings for all of 2017 will increase 10% from the prior year.
"Equity prices remain generally stable despite an abundance of growing concerns," Sandven said. "We continue to believe that the macro environment remains supportive of higher equity prices, bolstered by the Goldilocks-like pace of economic growth, rising earnings and absent a looming recession or widespread inflation."
Also on the earnings calendar in the coming week: M&T Bank (MTB) , Netflix (NFLX) , United Continental (UAL) will report on Monday; Comerica (CMA) , Harley-Davidson (HOG) , Johnson & Johnson (JNJ) , Charles Schwab (SCHW) , UnitedHealth Group (UNH) will report Tuesday; American Express (AXP) , BlackRock (BLK) , eBay (EBAY) , Qualcomm (QCOM) , TD Ameritrade (AMTD) , U.S. Bancorp (USB) will report Wednesday; Bank of New York Mellon (BK) , BB&T (BBT) , Verizon (VZ) , Visa (V) will report Thursday; and General Electric (GE) , Honeywell International (HON) , and Schlumberger (SLB) are scheduled for Friday.
On the economic calendar in the coming week: The April Empire State Manufacturing Survey and the housing market index will be released on Monday; housing starts and industrial production for March on Tuesday; the weekly Energy Information Administration petroleum status report and the Federal Reserve's beige book on Wednesday; jobless claims and the Philadelphia Fed business outlook survey for April on Thursday, and existing home sales and the purchasing managers' index (PMI) for April on Friday.
President Trump is set to meet with Italian Prime Minister Paolo Gentiloni at the White House Thursday.
Kansas City Federal Reserve Bank President Esther George, Boston Federal Reserve Bank President Eric Rosengren, Federal Reserve Governor Jerome Powell, and Minneapolis Federal Reserve Bank President Neel Kashkari will speak at separate events during the week.