Spotlight On CPI Report, AI Tech Events And Major Bank Earnings

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The release of the U.S. inflation report for March will keep interest rates at the top of mind for investors. Economists forecast a 0.3% month-over-month increase in CPI and a 3.5% year-over-year rise. BNP Paribas thinks moderating shelter inflation could help generate confidence that the FOMC will begin cutting rates in June, while relatively sturdy non-shelter services inflation is seen as posing a risk that overall inflation remains more resilient and the Fed starts its cutting cycle later than June. Seeking Alpha Investing Group Leader Chris Lau previewed that unless CPI rises significantly, it is immaterial in changing the Federal Reserve’s dovish position.

The tail end of the week includes the first flurry of major earnings reports, with JPMorgan Chase (JPM), Wells Fargo (WFC), BlackRock (BLK), and Citigroup (C) all due to spill numbers. Analysts have noted that investment banking came back strong in Q1, with high yield issuance, leveraged loan syndications, and equity underwriting volumes all at their highest levels since Q4 of 2021, but corporate loan demand has been weak. Delta Air Lines (DAL) and Constellation Brands (STZ) also report earnings next week. In the tech sector, AI enthusiasm could be recharged, with Intel (INTC), Google (GOOGL), and Marvell Technology (NASDAQ:MRVL) all holding events that are promised to cover AI use cases and capabilities.

Earnings spotlight: Monday, April 8 – Lotus Technology (LOT). See the full earnings calendar.

Earnings spotlight: Tuesday, April 9 – Neogen (NEOG), PriceSmart (PSMT), and Tilray Brands (TLRY). See the full earnings calendar.

Earnings spotlight: Wednesday, April 10 – Delta Air Lines (DAL), Applied Digital (APLD), and Rent the Runway (RENT). See the full earnings calendar.

Earnings spotlight: Thursday, April 11 – Constellation Brands (STZ), CarMax (KMX), and Fastenal (FAST). See the full earnings calendar.

Earnings spotlight: Friday, April 12 – JPMorgan Chase (JPM), Wells Fargo (WFC), BlackRock (BLK), and Citigroup (C). See the full earnings calendar.

Volatility watch: Options trading volume is elevated on TeraWulf (WULF) and Aurora Cannabis (ACB). The most overbought stocks per their 14-day relative strength index include AltC Acquisition (ALCC), SIGA Technologies (SIGA), and Kulr Technology Group (KULR). The most oversold stocks per their 14-day Relative Strength Index include Disc Medicine Inc (IRON), Amylyx Pharmaceuticals (AMLX), and Humana (HUM).

IPO watch: Companies expected to launch their IPOs in the week ahead include Neonc Technologies (NTHI), UL Solutions (ULS), and Cleancore Solutions (ZONE). Data security firm Rubrik (RBRK) is expected to file for its IPO. Birkenstock (NYSE:BIRK) will also be watched, with its IPO lockup period expiring on April 8.

Dividend watch: Companies forecast to increase their quarterly dividend payouts include FedEx (FDX) to $1.40 from $1.26, Constellation Brands (STZ) to $0.96 from $0.86, HB Fuller (FUL) to $0.22 from $0.205, Qualcomm (QCOM) to $0.85 from $0.80, and Aon (AON) to $0.65 from $0.615. See dividend stock picks from Seeking Alpha analysts.

Delta earnings preview: Delta Air Lines (DAL) is lined up to report Q1 earnings on April 10. The airline company is expected to report revenue of $12.9B and EPS of $0.36 for the quarter. Passenger revenue per available seat mile is forecast to fall sequentially during the quarter, while the cost per available seat mile is anticipated to be higher. Delta is expected to report adjusted EBITDA of $1.2B and free cash flow of $1.6B for the quarter. Ahead of the report, Bank of America said it expects to hear solid top-line commentary from the carrier and thinks the consensus Q2 estimate may be too low. The firm reiterated its Buy rating and boosted its price objective on Delta to $53 from $50. On the Delta earnings conference call, management is likely to cover capacity expectations for the busy summer season, which includes a potential boost from the Paris Olympics. As the first airline company to report earnings every quarter, Delta’s outlook usually has an outsized impact on the sector. The two airline stocks that have the highest trading correlation to Delta are United Airlines (UAL) and Alaska Air Group (ALK).

Tech events: The tech sector will be buzzing in the week ahead with major events. Intel (INTC) will hold its Intel Vision event in Phoenix, Arizona. This year’s event has the theme “Bringing AI Everywhere.” Intel CEO Pat Gelsinger will give a keynote address about enterprise AI and AI-driven business enablement. The conference will also highlight Intel’s future projects. The three-day Google (GOOG) (GOOGL) Cloud Next event will also take place during the week. The tech giant will show off AI-powered assistant Gemini, Generative AI Studio, and AI Platform tools during the event. DocuSign (DOCU) will hold its two-day Momentum24 event. CEO Allan Thygesen will be one of the keynote speakers. Also of high interest, Marvell Technology (MRVL) will hold a special event with the title “Accelerated Infrastructure for the AI Era.” Management is anticipated to discuss the total addressable market for application-specific integrated circuits and custom ASIC ramps. Citi opened a 30-day catalyst watch on the semiconductor stock on the view shares will rally similar to how Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO) moved higher after their respective AI-related events. Bank of America expects Marvell Technology (MRVL) to highlight a $20B to $30B incremental total addressable market. “AVGO dominates the custom chip market ($7.5bn or 75% share of the $10-11bn custom chip market in CY24E), but we expect MRVL to become more relevant and eventually claim over 10% share in the custom AI chip market,” updated analyst Vivek Arya. Notably, Marvell Technology (MRVL) is also anticipated to reinforce its competitive differentiation in custom chips when compared to lower-priced Taiwan rivals.

Spinoff watch: A number of companies are expected to finalize spinoff plans in Q2. New stocks that could start trading include Studio Business after spinning off from Lions Gate (LGF.A), Sporting Products after spinning off from Vista Outdoor (VSTO), Eviden after spinning off from Atos SE (OTCPK:AEXAF), and Centuri Group after spinning off from Southwest Gas Holdings (SWX). A.P. Moller – Maersk (OTCPK:AMKBF) (OTCPK:AMKBY) already set April 30 as the first trading day for Svitzer Group, which is the company’s towage and marine services activities unit.