Full-steam ahead for earnings season in the coming week as a range of industry leaders across a swath of sectors release their recent quarterly performances.
The week begins with one-fifth of S&P 500 companies already having reported earnings. It's been a mixed bag so far with earnings coming in fairly strong and revenue just barely passing beating expectations.
"It's not too bad, not too good," Vincent Deluard, vice president of global macro stategy at the BD Division of INTL FCStone Financial, said in a phone call. "Close to 80% of earnings beat, a little less on the sales side... and that's a pattern that we've seen pretty much every season for the past three years or so."
Of the 19% of S&P 500 companies that have reported so far, nearly 76% have exceeded analysts' earnings estimates, above the 64% historical average, according to Thomson Reuters. Just over 62% of companies have bested revenue estimates, narrowly edging past the historical average of 59%.
"Part of it has to do a little bit with accounting creativity," added Deluard. "You have a lot more leeway in the bottom-line number than you have in the top-line. What could have also dragged down the top-line is the strength in the U.S. dollar. S&P 500 companies derive more than half of their revenue from overseas."
The trend of weaker revenue could continue in the coming week with a particular emphasis on multinationals in the consumer and tech space.
Consumer earnings include Hasbro (HAS - Get Report) , Whirlpool (WHR - Get Report) and Kimberly-Clark (KMB - Get Report) on Monday; Chipotle (CMG - Get Report) , Coca-Cola (KO - Get Report) , JetBlue (JBLU - Get Report) , Panera Bread (PNRA) and Supervalu (SVU) on Tuesday; Bloomin' Brands (BLMN - Get Report) , Boston Beer (SAM - Get Report) , Buffalo Wild Wings (BWLD) , Hershey (HSY - Get Report) , PepsiCo (PEP - Get Report) and Procter & Gamble (PG - Get Report) on Wednesday; American Airlines (AAL - Get Report) , Ford (F - Get Report) , Domino's Pizza (DPZ - Get Report) , GrubHub (GRUB - Get Report) , MGM Resorts (MGM - Get Report) , Pinnacle Foods (PF) , Southwest Airlines (LUV - Get Report) , Starbucks (SBUX - Get Report) and Under Armour (UA - Get Report) on Thursday; and Colgate-Palmolive (CL - Get Report) , General Motors (GM - Get Report) and VF Corp (VFC) on Friday.
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In oil, materials and industrials earnings, Alcoa (AA - Get Report) , Barrick Gold (ABX) , Halliburton (HAL - Get Report) and Owens-Illinois (OI - Get Report) are scheduled for Monday; 3M (MMM - Get Report) , AK Steel (AKS - Get Report) , Baker Hughes (BHI) , Caterpillar (CAT - Get Report) , DuPont (DD) , United States Steel (X - Get Report) and Lockheed Martin (LMT - Get Report) on Tuesday; Boeing (BA - Get Report) and Hess (HES - Get Report) on Wednesday; Dow Chemical (DOW) and Vale (VALE - Get Report) on Thursday; and Chevron (CVX - Get Report) , Exxon Mobil (XOM - Get Report) , LyondellBasel (LYB - Get Report) and Phillips 66 (PSX - Get Report) on Friday.
Health and biotech earnings this week include Express Scripts (ESRX) on Monday; Biogen (BIIB - Get Report) , Eli Lilly (LLY - Get Report) and Novartis (NVS - Get Report) on Tuesday; Amgen (AMGN - Get Report) , Anthem (ANTM - Get Report) and Baxter International (BAX - Get Report) on Wednesday; and AbbVie (ABBV - Get Report) , Allergan (AGN - Get Report) , AthenaHealth (ATHN) , Bayer (BAYRY) , Boston Scientific (BSX - Get Report) , Bristol-Myers (BMY - Get Report) and Celgene (CELG - Get Report) on Thursday.
Finance earnings include Ameriprise Financial (AMP - Get Report) on Monday; Capital One (COF - Get Report) and Discover Financial (DFS - Get Report) on Tuesday; Credit Suisse (CS - Get Report) on Wednesday; and UBS (UBS - Get Report) on Friday.
In tech and telecom earnings, U.S. Silica Holdings (SLCA - Get Report) and Sohu.com (SOHU) will report on Monday; Texas Instruments (TXN - Get Report) , AT&T (T - Get Report) , Shutterfly (SFLY - Get Report) , Juniper Networks (JNPR - Get Report) and Xerox (XRX - Get Report) on Tuesday; Netgear (NTGR - Get Report) , Paypal (PYPL - Get Report) and Seagate (STX - Get Report) on Wednesday; and Alphabet (GOOGL - Get Report) , Amazon.com (AMZN - Get Report) , Baidu (BIDU - Get Report) , Microsoft (MSFT - Get Report) and Western Digital (WDC - Get Report) on Thursday.
On the economic calendar in the coming week: new home sales for March, the S&P Corelogic Case-Shiller Home Price Index for February and consumer confidence for April will be released on Tuesday; durable goods orders, international trade and the pending home sales index for March are scheduled for Thursday; Chicago PMI for April and the final reading on consumer sentiment for April are set for Friday.
Most importantly, the advance estimate of first-quarter GDP is set for Friday morning.
"The advance GDP release is likely to confirm a slowdown to a below-trend pace," TD Securities analysts wrote in a note. "We are roughly in line with the market consensus and look for a 1.3% print, reflecting sub-par consumer spending and a drag from net exports. The reading would be in stark contrast to relatively bullish survey data, though we note that residual seasonality is partly at play. Because of this, the Fed is likely to look through below-trend Q1 growth given robust labor market conditions."
Congress will also scramble to avoid a government shutdown by pushing through a continuing resolution. Negotiations will likely intensify on Friday ahead of the deadline of midnight, April 28. Office of Management and Budget Director Mick Mulvaney has said that money for President Trump's proposed border wall must be part of the spending bill Congress will look to pass, a major conflict for Democrats in opposition of the expensive project.