It’ll shake the markets: earnings reports and data on the labor market

Что встряхнет рынки: отчеты о доходах и данные по рынку труда 2020 is not so bad: industrial indexes Dow Jones, S&P 500 and Nasdaq 100 showed the best results with 1987, 1998 and 2001, respectively.

Shares of technology companies again helped the market, and Dr. Anthony Fauci told Congress that the number of new cases of coronavirus may increase from 40 thousand people currently to 100 thousand daily. Fauci, who is a leading expert on infectious diseases at the National institutes of health, said the number of infected has increased because in some places, businesses open too fast, and people don’t follow the recommendations.

In his speech before the Committee on financial services of the house of representatives on Tuesday, the Chairman of the Federal reserve system Jerome Powell said that the second wave of the outbreak of coronavirus can “force the government and people to stop economic activity and undermine public confidence.”

According to the analysis, compiled by Reuters Tuesday, incidence in the USA increased at least by 43% and mortality increased by 20%.

The good news it should be noted that the shares of postal and logistics company FedEx (NYSE: FDX) rose after the presentation of fourth quarter results that exceeded projections, including earnings per share of $to 2.53 on revenue of $17.4 billion. Analysts polled expected earnings per share of $1.70 on revenue of $16,45 billion.

Shares of FedEx were down 7% YTD, less than the S&P 500 index, which fell by 4.06% year to date.

Here are three things that can affect the markets on Wednesday.

1. In the spotlight the labor market and industrial production

The national report on employment with monthly data employment the workforce in the U.S. will be released at 08:15 Eastern time (12:15 GMT). Analysts expect that will add 3 million jobs, after the data for April and may showed that the economy had lost more than 21 million jobs.

The manufacturing index of the Institute for supply management (ISM) will be released at 10:00 Eastern time (14:00 GMT) and is expected to rise sharply, but even if it rises to the level of 50 that separates growth from contraction, the level of business activity will still be much lower compared to the beginning of the year.

Government data on crude oil inventories due to be published at 10:30 Eastern time (14:30 GMT), and minutes of the meeting of the Federal open market Committee at 14:00 Eastern time (18:00 UTC).

2. What happened to quarantine?

Constellation Brands Inc (NYSE: NYSE:STZ) will report financial results for the first quarter before the market opens. The consensus estimate for earnings per share from the manufacturer vintage Corona beer is $2,04 (-7,7% per year), the consensus revenue is $1.97 billion (-6,2% per year), according to research firm Seeking Alpha. Stock increased by 63% after reaching a low for the year 2020 in March. The last few months Constellation is deprived of its brands. Last week it has agreed to sell the brand Paul Masson Grande Amber Brandy company Sazerac Company, Inc. for $255 million

The soda maker FIZZ also will report on 1 July after the market closes. As expected, National Beverage Corp. (NASDAQ: FIZZ) will report lower earnings in the third fiscal quarter compared with a year earlier, according to analysis firm Zacks Equity Research. Manufacturer of soda La Croix will show earnings per share of 50 cents, which is 11% lower than last year. The company’s shares rose nearly 20% in 2020.

Food producer General Mills (NYSE: GIS) and Department store chain Macy’s Inc (NYSE: M) also report before the market opens.

The consensus forecast of earnings per share for General Mills is $1.06, which is 28% higher than a year earlier, while revenue is expected to grow by 20% to $4,98 billion, according to Seeking Alpha. The company’s shares have gained about 17% this year.

Earlier this month the Department store chain Macy presented the preliminary results of sales and profits for the first quarter of 2020. It is estimated that the sales of Macy in the first quarter decreased by approximately 45%, to $3,02 billion from 5.5 billion a year ago. And its shares have fallen by about 60% in 2020.

3. Postmates plans to enter the market

The Agency Reuters with reference to sources reported that Postmates Inc has revived a plan for an initial public offering of the shares. However, due to quarantine and isolation more consumers order food using delivery services, including those offered by the company Uber Technologies (NYSE: UBER) and transportation services offered by investor Michael Klein.

It became known yesterday that Uber is in talks to buy Postmates for $2.6 billion, but the company has not yet confirmed this message.


Earlier in June, the company to deliver products Just Eat Takeaway (AS: TKWY) agreed to by GrubHub (NYSE: GRUB) for $ 7.3 billion

Author Christian Sudan

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