While it's true we will see a pronounced pick up in the number of companies reporting their March-quarter results this week, it is also a shortened trading week, as the U.S. stock market will be closed on Good Friday. That means getting a week's worth of data in four days.
In terms of what's on deck this week, on the economic calendar we have several more pieces of March data, including industrial production and capacity utilization, as well as housing starts, building permits and retail sales.
Given several of our Trifecta Stocks or Trifecta Stocks portfolio holdings, we will be digging deep into the retail report. We'll start to get some indications on April, via the latest Empire Manufacturing and Philadelphia Federal Reserve indices as well.
Amid that data we will have the Fed's Beige Book for April, which alongside the March retail sales report will probably be the most anticipated report of the week. As a reminder, the Beige Book is an anecdotal summary of business activity across the Federal Reserve member banks.
We know the vector for the domestic economy is down compared to the back half of 2018, and we will be assessing the forthcoming Beige Book to determine its velocity.
On the earnings front, the March-quarter earnings season "fun" started off with a comparative trickle of reports this week, 28 in all, including several high-profile banks. The pace will pick up this week when roughly 170 companies will be issuing their results. The following week, which begins April 22, the volume of earnings reports ramps up considerably, with more than 700 companies issuing their quarterly results and guidance.
It is going to be fast, it is going to be furious, and it means filling out our investment mosaic with insights and data points as these reports roll out.
Aside from Trifecta Stocks holding American Express Co. (AXP) , we have no other portfolio companies reporting this week, but here are the reports that we'll be watching and digesting:
We have more financials coming at us including Citigroup Inc. (C) , Goldman Sachs Group, Inc. (GS) , Bank of America Corp. (BAC) , Comerica Inc. (CMA) , U.S. Bancorp (USB) , and Synchrony Financial (SYF) .
Inside those reports, we'll be looking for data and comments on the domestic as well as global economy, health of the consumer and business investment spending, not to mention watching delinquency and charge off levels compared to the December and September quarters.
With both truck tonnage and weekly rail car traffic falling in 2019, we want to check in on results from J.B. Hunt Transport Services, Inc. (JBHT) , CSX Corp. (CSX) , and Union Pacific Corp. (UNP) , to see if there are any bright spots to be had, and how these key companies see the June quarter shaping up.
Similarly, we'll be digging into the rear-view mirror results from Honeywell International Inc. (HON) , Alcoa Corp. (AA) and United Rentals, Inc. (URI) , but focusing on what, if anything, is driving changes to their respective June-quarter guidance. As we pull these data points and comments together, we'll be matching them against respective end markets, as well as GDP expectations for the June quarter.
Following Apple Inc.'s (AAPL) recent service event that showcased its AppleTV+ streaming service, and Thursday night's debut of Disney+ from Disney, Netflix Inc.'s (NFLX) March-quarter results will be a report to read and conference call to tune in for.
The Netflix management team hasn't been shy in the past, and in our view correctly compared its industry to the video-gaming industry, which it competes with on content and platform.
Following these Apple and Disney announcements, we will be quite intrigued to hear how Netflix sees them altering the competitive landscape, especially given the announced price point of $6.99 for Disney+.
Rounding out our list of earnings reports to watch, we have Ericsson (ERIC) , and we'll be focused on its 5G-related comments, as well as PepsiCo, Inc. (PEP) , for which we'll be listening to for how it is pivoting its business toward healthier, better for you snacks and beverages.
This commentary is an excerpt from the Trifecta Stocks Roundup, a weekly feature sent to subscribers of Trifecta Stocks. Click here to learn more about this portfolio, trading ideas and market commentary product.
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.
