Big week ahead for the first quarter, economic data; KO Beats, ATVI Misses – April 25, 2022


Monday, April 25, 2022

We’re about to embark on the busiest week of the first quarter earnings season, with some of the best-known names – Microsoft (MSFT Free report) , Meta (born Facebook) (Facebook Free report) and Amazon (AMZN Free report) , among hundreds of others. We also expect to see a large amount of economic data this week, which will help inform the Fed at its monetary policy meeting next week.

Some of the more important metrics we’ll see updated include: Durable Goods Orders, Expected Commodity Trade, Case-Shiller Home Prices, New and Pending Home Sales, PCE Price Index, Consumer Confidence, University of Michigan Consumer Sentiment, Weekly Unemployment Claims. and the first reading on Q1 GDP. That’s a lot of grist for the mill, and it may offer some hope that better-than-expected headlines could help market sentiment break a week-long losing streak on major indices.

The Dow hit its worst day since October 2020 on Friday, falling nearly 1,000 points, or more than -2.8%. The blue-chip index is on a four-week losing streak in this trading week; the S&P 500 and the Nasdaq are down for three straight weeks. At the morning low, we see the Dow -158 points at this hour, -60 points on the Nasdaq and -22 points for the S&P 500.

Already this morning Coca Cola (KO Free report) released results for its first quarter, with both top and bottom beats: Earnings of 64 cents per share versus 58 cents in the Zacks consensus came along with $10.49 billion in quarterly revenue, for a positive surprise of +5.84%. Equities rose by +2.4% in pre-market trading; the stock has already gained +10% since the start of the year. Coke hasn’t missed earnings estimates in five years. To learn more about knockout earnings, click here.

Activision Blizzard (ATVI Free report) , on the other hand, disappointed investors on the large write-downs linked to the imminent acquisition by Microsoft: earnings of 38 cents per share were barely half of what was expected, and down from 84 cents per share. share of the quarter of the previous year. Revenue reached $1.48 billion for the quarter, for a negative surprise of -17.73%. Call of Duty numbers were weak in the quarter, which largely explains the loss unexplained by fees associated with Microsoft’s absorption.

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