Stocks To Watch: Inflation Data, Bank Earnings On Deck

Summary:

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The week begins slowly with many markets across the world observing the Easter Monday holiday. However, the quiet start serves as a calm before the storm as not only key CPI and PPI prints are due in mid-week, but a host of key earnings reports. Namely, a host of big banks, including JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), and Citi (NYSE:C) are due to report quarterly results for the first time since the financial sector was hit by the biggest banking crisis since the Great Recession. Seeking Alpha contributors Logan Kane and Jonathan Weber voiced the belief that JPMorgan (JPM) is a Buy, with Weber advising that the outlook for the big bank remains compelling amidst the sector’s turmoil. As bank earnings season progresses, smaller banks like PacWest Bancorp (PACW), First Republic Bank (FRC), and Western Alliance Bank (WAL) were rated Sells by Kane.

Ahead of Friday’s focus on financials, the earnings slate is somewhat thin, with supermarket chain Albertsons Companies (NYSE:ACI) and Delta Air Lines (NYSE:DAL) headlining a sparsely populated calendar. Instead, the focus will surely be on macro data, with not only the highly-anticipated CPI print due on Wednesday, but a host of reports from the energy sector that was recently roiled by a surprise production cut signaled by OPEC. The cartel will release its monthly oil market report in mid-week, following the US Energy Information Administration’s publication of a short-term energy outlook and an American Petroleum Institute update on US oil inventories the day prior. Friday will also round out the week with a reading on consumer confidence from the University of Michigan.

Earnings spotlight: Monday, April 10 – Tilray Brands (NASDAQ:TLRY), PriceSmart (PSMT) and Greenbrier Companies (NYSE:GBX)

Earnings spotlight: Tuesday, April 11 – CarMax (NYSE:KMX), ING Groep (ING), and Albertsons Companies (ACI). Read more on Seeking Alpha contributor Daniel Jones’ thoughts on the probability of an Albertsons/Kroger merger going through and the ramifications if it’s blocked.

Earnings spotlight: Wednesday, April 12 – Rent the Runway (RENT) and Sportsman’s Warehouse Holdings (SPWH).

Earnings spotlight: Thursday, April 13 – Delta Air Lines (DAL), Progressive Corp. (PGR), and Fastenal (FAST). Seeking Alpha Contributor Dhierin Bechai advised that the airline presents a buying opportunity ahead of earnings.

Earnings spotlight: Friday, April 14 – UnitedHealth Group (NYSE:UNH), BlackRock (BLK), Wells Fargo (WFC), JPMorgan (JPM), and Citi (C). Seeking Alpha contributor Juxtaposed Ideas, recently argued that Citi offers opportunity amid uncertainty in the sector. Read Seeking Alpha’s full earnings week preview for the week ahead.

Dividend watch: The list of potential dividend changes includes Oracle Corporation (ORCL), Dollar General Corporation (DG), General Dynamics Corporation (GD), UBS Group (UBS), WD-40 (WDFC), Bank OZK (OZK), and First United Corporation (FUNC). See Seeking Alpha’s list of Quick Dividend Stock Picks.

Volatility watch: Short interest in Carvana (CVNA) and Bed Bath & Beyond (BBBY) remains elevated as both firms seek to stave off insolvency. Bed Bath & Beyond has scheduled a special shareholder meeting for early May. Options trading has spiked over the last week on Endeavor Group (EDR) following its purchase of World Wrestling Entertainment (WWE).

CPI preview: The closely-watched March consumer price index report is due for release. Economists expect the index to rise 0.3% from February, lowering the year-over-year inflation rate to 5.2%. In the February report, shelter, recreation, and airline fares were among the indices rising the most sharply while used cars and trucks and medical care continued to decline following spikes in 2022. Egg prices, which popped in 2022 amid an avian flu epidemic, also cooled in February. Core CPI, which excludes food and energy, is expected to rise 0.4% sequentially. The report will be preceded by comments from Federal Reserve presidents Williams, Goolsbee, Harker, and Kashkari early in the week, with indications about their long-term economic outlook.

Corporate events: Moderna (MRNA) will host its fourth annual Vaccines Day, Science Applications International Corporation (SAIC) will host an investor day, and ConocoPhillips (COP) will host an Analyst & Investor Meeting.

Quant ratings: Stocks with recent quant rating changes include two-step downgrades for Amazon (AMZN), Exxon Mobil (XOM), and Deere & Company (DE) to Hold from Strong Buy. On the other side of the spectrum, the team shifted from Hold to Strong Buy on PVH Corp. (PVH) and Arch Capital Group (ACGL). Blackstone (BX) and UBS (UBS) were also shifted from Buy to Hold. The team also moved from Hold to Strong Sell on AngioDynamics (ANGO).

Notable conferences: The American Association for Cancer Research will host its annual meeting on Friday. Event sponsors include Eli Lilly (LLY), Moderna (MRNA), Merck (MRK), AbbVie (ABBV), Amgen (AMGN), AstraZeneca (AZN), and Bristol-Myers Squibb (BMY). Across the pond and into the alps, the 2023 Gold Forum Europe in Zurich, Switzerland will kick off on Tuesday and carry into Wednesday. The event includes keynote speeches from Equity Management Associates Managing Partner Lawrence Lepard and Macro Compass founder Alf Peccatiello and will be attended by a number of firms in the space, including Alamos Gold (AGI), Eldorado Gold Corp. (EGO), Agnico Eagle Mines (AEM), and IAMGOLD Corp (IAG). Check out Seeking Alpha’s Catalyst Watch for more events scheduled for next week.

Box Office: The Super Mario Bros. Movie (CMCSA) based upon the popular Nintendo (OTCPK:NTDOY) platformer opened with first-day grosses of about $32M on Wednesday. The title will look to continue gains into its opening weekend in an attempt to unseat the top-ticket at present in Dungeons & Dragons: Honor Among Thieves (PARA) (PARAA) managed for the whole weekend ($38.5M). John Wick: Chapter 4 (LGF.A) (LGF.B) and Air (AMZN), the story of Nike’s overtures toward Michael Jordan at the start of their business relationship, round out movies of note playing now. Read a detailed box office preview.

Sources: EDGAR, Bloomberg, CNBC, Reuters