About 20 minutes after the start of the session on Wall Street, the Dow Jones rises by more than 95 points (+ 0.28%), to 34,138 points, the S&P 500 advances by 0.25% to about 4,190 points and the Nasdaq advances by 0.20% to approximately 14,045 points.
Quarterly (watch out for Big Tech), Federal Reserve, Joe Biden’s “American Families Plan” and US GDP are the main market movers of this new week on Wall Street.
From the quarterly front, we will start immediately today with the balance sheet of the Elon Musk Tesla giant (accounts after the market close).
Wall Street expects adjusted earnings of $ 0.74 per share, compared to $ 0.25 per share in the first quarter of 2020. If the company were to meet this estimate, it would be Tesla’s seventh consecutive quarter of profit. . The stock jumped by about 2%. Analysts also expect Tesla to report revenue of $ 10.5 billion in the first quarter, up from $ 6 billion in the period a year ago.
Among the first to give the accounts there will also be Alphabet, tomorrow. In the first quarter, the parent company of Google is expected to report, according to consensus estimates, an EPS of $ 15.45 per share, which represents year-over-year growth of about 57% from $ 9.87 per share compared to the same quarter. a year ago. The Mountain View internet giant is seen reporting revenue growth of more than 25% to around $ 42.2 billion.
Since the beginning of the year, Alphabet has marked a substantial + 30% and the accounts could push the stock to the new tops. The holding company to which Google belongs will announce its financial statements tomorrow, Tuesday 27 April, as will Microsoft.
We will then proceed to the accounts of the first quarter of Amazon, Apple, among others, Wednesday 28 April, and then arrive at the results of Twitter, Thursday 29 April.
In general, approximately 1/3 of the companies listed on the S&P 500 will report their financial results for the first quarter of the year this week. So far, of the 25% of listed companies that have reported quarterly reports, 84% have reported a better than expected earnings per share and 77% have beaten consensus estimates on the turnover front.
In the event that the 84% percentage were to be confirmed, it would be the highest percentage of S&P 500 companies that have ever beaten consensus estimates since FactSet began monitoring corporate America’s balance sheets in 2008.
So analysts Andrew Heets, head of cross-asset strategist, at Morgan Stanley: “Growth is still accelerating and liquidity remains abundant. The bull market remains intact, and I struggle to see the kind of calamity that characterized the summers of 2010, 2011, 2012 and 2015 ″. Having said that, it is likely that the fluctuations of the summer are stronger and more agitated ”.
On the macroeconomic front, Wednesday 28 April will be the day on which, at the end of the two-day meeting of the FOMC, its monetary policy arm, Jerome Powell’s Fed will announce its decision on rates, which are expected to remain unchanged at zero.
More information could come on when the US central bank might start thinking about a tapering of its asset purchase program.
Wall Street is also awaiting information on the family plan that US President Joe Biden will present to the US Congress on Wednesday evening. The US stock market shuddered last Thursday after Bloomberg reported rumors that Biden would aim to raise the capital gains tax to 43.4% for those earning $ 1 million or more, up sharply from the current 20%.
The publication of US GDP will also arrive on Thursday 29 April, which, according to analysts from Goldman Sachs, will rise by 7.2% throughout 2021, leaping by 10.5% in the second quarter.