Day Ahead: Top 3 Things to Watch on April 30

Day Ahead: Top 3 Things to Watch on April 30

Investing.com  | Apr 29, 2020 19:17

Day Ahead: Top 3 Things to Watch on April 30

By Kim Khan 

Investing.com - The stock market demonstrated its ability to turn any hopeful news into solid gains today, rallying sharply following a positive report on Gilead’s virus treatment.

And that enthusiasm could follow through tomorrow as big-name postmarket earnings satisfied the bulls.

Tesla (NASDAQ:TSLA), Facebook (NASDAQ:FB) and Microsoft (NASDAQ:MSFT) rose in after-hours trading following their results.

Investors shrugged off a sharp contraction in first-quarter GDP reported today, but tomorrow brings the more timely jobless claims numbers.

More big-name earnings arrive as well and it’s ECB decision day.

Here are three things that could move the markets tomorrow.

1. Rise in Jobless Claims Seen Tempering Again

Jobless claims will be in the spotlight ahead of trading tomorrow, with forecasts expecting them to show another decline in those filing for benefits but to be still at historically high levels.

The Labor Department reports weekly initial jobless claims at 8:30 AM ET (12:30 GMT).

Claims for first-time unemployment benefits are expected to have risen by 3.5 million, down from a rise of 4.43 million the week before, according to forecasts compiled by Investing.com. 

Continuing claims are seen rising to about 19.3 million.

At the same time, March personal income and spending data arrive.

Spending is expected to have fallen 5% last month, with income down 1.5%.

2. Another Big Bout of Tech Earnings on Tap

Major tech earnings have so far justified the bullish bets of investors and two more big names will dominate the postmarket results Thursday.

Amazon (NASDAQ:AMZN), expected to be one of the few companies not struggling during the lockdown, reports its results.

Analysts are predicting a profit of $6.34 per share and revenue of about $72 billion, according to forecasts compiled by Investing.com.

Last week Goldman Sachs (NYSE:GS) boosted its price target on the stock to $2,900 from $2,600, the high-water market on Wall Street, and said it should report numbers well above the consensus.

“The increase in demand the company's retail, (cloud) and ads businesses is seeing and Amazon's ability to meet the challenges of this demand, will, we believe, serve to steepen the curve of its long term growth rate, drive incremental profitability, and further deepen the competitive moat around all of its businesses,” Goldman analyst Heath Terry said in a note.

Shareholders will also be looking for any response to President Donald Trump's assertions that package delivery companies should be paying much more to use the U.S. Postal Service.

Apple (NASDAQ:AAPL) will also issue its quarterly numbers.

The company is expected to post a profit of $2.31 per share and revenue of about $55 billion.

Apple is reportedly delaying the ramp-up in production of its flagship 2020 iPhones due to demand concerns and manufacturing disruption due to Covid-19.

Twitter (NYSE:TWTR) will report ahead of trading, with the consensus calling for a profit of 10 cents per share and revenue of about $791 million.

And McDonald’s (NYSE:MCD) will weigh in ahead of trading as well. Analysts predict earnings of $1.60 per share on sales of about $4.7 billion.

Investors will also be looking for ideas as to when the company will start opening up its restaurants.

3. ECB Decision, Press Conference Ahead

Central banks continue to be at the forefront tomorrow as the European Central Bank has its decision day.

The ECB will issue its policy statement at 7:45 AM ET (11:45 GMT).

ECB President Christine Lagarde will hold her press conference soon afterwards at 8:30 AM ET.

The central bank is not expected to make any moves on interest rates or adjustments to its 750 billion euro Pandemic Emergency Purchase Programme (PEPP) until it gets better clarity on how the easing of lockdown measures is progressing.

Policymakers are also awaiting details from the EU on a potential proposed recovery fund for the coronavirus.

"PEPP may be sufficiently large to fend off (temporarily) pressure on individual countries or product classes until we have more clarity on funding needs a bit later in the year," Bank of America (NYSE:BAC) said.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the App

More markets insights, more alerts, more ways to customize assets watchlists only on the App

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.