Day Ahead: Top 3 Things to Watch

Day Ahead: Top 3 Things to Watch

Day Ahead: Top 3 Things to Watch
Stock Market
Monday, April 15, 2019 - 21:09 - Here’s a preview of the top 3 things that could rock markets tomorrow.

1. Netflix, IBM, J&J and UnitedHealth to Report

The first-quarter earnings season is in full swing. Tomorrow’s reports include three Dow stocks and one of the fastest-growing media companies.

Netflix (NASDAQ:NFLX) is due after the close. Analysts polled by expect the company report a profit of 57 cents a share in the quarter, down from 64 cents a year ago. But revenue is expected to rise 21% to $4.5 billion.

The video-streaming business is filling up with competitors. Disney expects to start a streaming service in November, which has depressed Netflix shares since last week. While up 30.3% for the year, Netflix shares are off nearly 18% from their 52-week high reached in June 2018.

Also after the bell, IBM (NYSE:IBM) is expected to report $2.22 a share for the quarter, down from $2.45 a year ago. Revenue is projected at $18.5 billion, down 2.9% from a year ago. Investors may focus most closely on the performance of IBM’s cloud business. The stock is up 26% this year.

Ahead of trading, UnitedHealth (NYSE:UNH) releases results. The health-insurance giant rose 3.1% on Monday but is down 7.6% this year on unease over calls for Medicare for all.

Analysts expect the company to report $3.59 a share for the quarter, up from $3.04 a year ago. Revenue is projected at $59.7 billion, up 8.7% from a year ago.

Johnson & Johnson (NYSE:JNJ) is expected to report $2.04 a share in earnings, down slightly from a year ago’s $2.06, with revenue slipping 1.9% to $19.62 billion. The stock is up 5.5% this year.

2. Housing, Industrial Production Data Due

While earnings season is garnering the most attention, there are still economic indicators through the week.

Tomorrow brings data on housing and industrial production.

At 10:00 AM ET (14:00 GMT), the National Association of Home Builders issues its April housing market index.

On average, economists expect the index to edge up to 63, about the same as the past two months, according to forecasts compiled by

March industrial production numbers come from the Federal Reserve at 9:15 AM ET.

Industrial production is expected to have risen 0.2% in March, with capacity utilization staying at 79.1%.

3. Will API Build Streak Continue?

Oil prices took a breather from their recent tearaway rally today on concerns about how much Russia wants to adhere to the OPEC+ production cut agreements.

Crude oil futures settled 49 cents lower at $63.40 after Russia’s finance minister touted the prospect of boosting output to protect market share.

Bears could get another hand tomorrow when the American Petroleum Institute’ snapshot of weekly U.S. oil inventories arrives, a day ahead of the official government tally.

The API data has shown three-straight weeks of builds.

© Reuters.

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