What to Watch in the Week Ahead and on Monday, April 21

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What to Watch in the Week Ahead and on Monday, April 21

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(U.S. and Canada markets are closed on Friday, April 18, for Good Friday)

ON MONDAY

Federal Reserve Bank of Chicago President Austan Goolsbee is scheduled to appear on CNBC for an interview.

REST OF THE WEEK

As the earnings season picks up pace, technology giants take centerstage with investors watching out for AI spending numbers and guidance. On Thursday, Google parent Alphabet is expected to report a rise in revenue for the first quarter, helped by steady demand for its cloud services and an increase in ad revenues. However, growth in both key segments is expected to slow in the quarter. Investors will especially focus on a potential tariff-related impact to Alphabet’s AI goals as well as commentary on the U.S. ad market. Separately, Intel is set to report a drop in its first-quarter revenue on Thursday, with investors watching closely for clues on newly appointed CEO Lip-bu Tan's strategy to turn the chipmaker around amid a global trade war.

On Tuesday, Tesla is expected to report a drop in profit margin and earnings in the first quarter after deliveries tumbled and the automaker missed estimates in the January-March period. Investors are awaiting further details on the more affordable model that some expect could drive sales this year. However, Wall Street now expects 2025 sales to fall for the second straight year due to damage to the Tesla brand due to CEO Elon Musk's political stance and economic uncertainty due to the Trump administration's tariffs.

A host of consumer and retail companies are lined up to release their quarterly earnings as investors await commentary on how the companies plan to deal with tariff-fuelled inflationary pressures and dampened consumer sentiment. On Thursday, PepsiCo is expected to post a drop in revenue in the first quarter as consumers temper spending on sodas and snacks in the United States. Procter & Gamble is forecast to report a fall in third-quarter revenue on the same day, as spending on pricier diapers and other home essentials took a hit. Colgate-Palmolive’s first-quarter revenue, due Friday, is also estimated to have dwindled, hurt by impact from tariffs and weaker demand for its higher-priced products including oral care.

Boeing, which is releasing its first-quarter results on Wednesday, is among the most-watched companies. Investors will especially look out for comments from the company executives as it tries to ramp up production of its cash-cow airplane, the Boeing 737.

Federal Reserve policymakers are slated to take part at different events just weeks before the next monetary policy meeting. On Tuesday, Minneapolis Fed President Neel Kashkari is scheduled to take part in a moderated question-and-answer session at the U.S. Chamber of Commerce Global Summit in Washington. And on Thursday, Kashkari is due to attend another event at the University of Minnesota College of Science and Engineering in Minneapolis. Philadelphia Fed President Patrick Harker is set to participate in a fireside chat on Tuesday at the Economic Mobility Summit, while on Wednesday, Chicago Fed President Austan Goolsbee is slated to virtually attend the event. Cleveland Fed President Beth Hammack is due to speak at a New York University event on Wednesday. Separately, Federal Reserve is due to issue the Beige Book on Wednesday.

Southwest Airlines is scheduled to report its first-quarter earnings on Thursday, where it is expected to post a narrower loss. American Airlines is also set to release its first-quarter results on the same day and is expected to report a wider loss. Investors will be closely monitoring any remarks from the companies on how tariffs are affecting travel demand.

On the U.S. economic tap, the S&P Global flash manufacturing, services and composite PMIs for April are due on Wednesday. On Thursday, orders for durable goods for March is expected to show a 1.8% rise, compared to a 1% increase in February. Excluding transport, March orders are likely to have dipped 0.1% after rising 0.7% the month before. Data on new home sales units for March is due on Wednesday, which is expected to show a modest rise to 678,000 units in March from 676,000 units in February. In contrast, existing home sales for March likely dipped 3% to 4.12 million units. The Labor Department is set to release the weekly jobless claims numbers on Thursday. On Friday, the University of Michigan’s final consumer sentiment index for April is on the radar.

On Wednesday, the governor of the Bank of England, Andrew Bailey, the chief economist of the European Central Bank, Philip Lane, the governor of the Central Bank of the Republic of Turkey, Fatih Karahan, and the deputy governor of the Central Bank of Argentina, Vladimir Werning, are scheduled to speak at an event organised by the Institute of International Finance. Separately, Bank of England Deputy Governor Clare Lombardelli is also slated to speak on the sidelines of IMF meetings in Washington on Thursday.

Goldman Sachs is scheduled to hold its annual shareholder meeting on Wednesday, in which among other things there will be a vote on the pay of top Goldman executives, which proxy advisor Glass Lewis called excessive.

Cigarette maker Philip Morris International will on Wednesday report first-quarter results. Investors will be watching for commentary on the impact of a global trade war on consumers, as well as early performance of the company's flagship heated tobacco device IQOS after it went on sale in Texas in March.

Chipotle Mexican Grill is expected to post a rise in first-quarter revenue on Wednesday as demand for its burritos remains robust despite fears of weakness in spending on dining out.

Health insurer Elevance Health is expected to report first-quarter earnings on Tuesday. Insurers will focus on its medical costs related to government-backed Medicaid plans and changes to its full-year forecast.

Monopoly owner Hasbro is expected to post a rise in first-quarter revenue on Thursday, helped by improving demand for its toys and games. Investors will look for comments on impact from tariffs, demand, updates on the company's growth plan as well as annual forecasts.

Kleenex tissue maker Kimberly-Clark is expected to post a decline in first-quarter revenue on Tuesday, hurt by weaker demand for its personal care and household products.

Beverage maker Keurig Dr Pepper is expected to post a rise in first-quarter revenue on Thursday, helped by steady demand for its sodas and tonic water. Investors will look for comments on pricing actions, demand, tariffs and annual forecasts.

Home-building products maker Masco is expected to post a decline in first-quarter revenue on Wednesday, owing to weaker demand for its high-priced plumbing and home decor items.

Dan Loeb, founder & CEO of Third Point, is scheduled to speak to the Economic Club of New York on Tuesday.

In Canada, the country’s producer prices data for March is scheduled for release on Tuesday, followed by February retail sales numbers on Friday. Business barometer for April is also on the tap.

In Latin America, Brazil’s mid-month IPCA-15 inflation index numbers for April are on the radar on Friday. In Mexico, the country’s national statistics agency is set to publish data on consumer price changes in the first half of April on Thursday and IGAE economic activity for February will be out on Friday. Argentina’s economic activity and retail sales for February are due on Tuesday and Wednesday, respectively.

(Reporting by Ananya Roy in Bengaluru; Edited by Sahal Muhammed)

((Ananya.Roy@thomsonreuters.com;))

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