ECONOMIC SILUET: 5 things to know before the stock market opens Monday

Senin, 24 April 2023

5 things to know before the stock market opens Monday

MON, APR 24, 2023

MORNING SQUAWK

1. Tripped up

All streaks need to come to an end. The Dow closed last week in the red, breaking a run of four consecutive weeks of wins. The S&P 500 and the Nasdaq also finished last week down. Investors are trying to get a hold on where the economy is headed, particularly since the Federal Reserve has signaled it would slow down its rate-hiking plans. This week should bring more data points for markets to digest. First quarter GDP numbers are expected, as is a huge slate of major corporate earnings (see below). Follow live market updates.

2. Tech leads a huge earnings week

This is your week if you're an earnings geek. Several major companies, including tech mega caps such as Meta and Amazon, are on deck. Coca-Cola kicked things off Monday morning (see below), while First Republic Bank, which was at the center of the recent banking crisis, is set to post results after the bell Monday afternoon. This week we should also get a taste of how restaurant companies are doing as consumers contend with high inflation. Here's a look at several of the big names set to report this week:

Tuesday: General Motors, McDonald's, PepsiCo, UPS (before the bell); Alphabet, Microsoft, Chipotle (after the bell)

Wednesday: Boeing, Norfolk Southern (before the bell); Meta, Mattel (after the bell)

Thursday: American Airlines, Eli Lilly, Merck, Comcast (before the bell); Amazon, Intel (after the bell)

3. NBCUniversal CEO Shell exits

The Jeff Shell reign at NBCUniversal came to a sudden end Sunday, the result of an investigation into an "inappropriate relationship" the now-former CEO had with a woman in the company. Shell admitted he had the relationship, saying he "deeply" regrets it, according to a company statement. CEO Brian Roberts and President Mike Cavanagh of parent company Comcast said in an internal email: "You should count on your leaders to create a safe and respectful workplace." Cavanagh will run things at NBCUniversal, which also owns CNBC, for the time being, but he wasn't named interim CEO. Shell's exit is the second shocking media world CEO departure in the past six months, following Bob Chapek's November firing at Disney, which allowed Bob Iger to return. It also comes at a pivotal time for NBCUniversal as it tries to make its Peacock streaming service profitable while banking on big film releases such as "The Super Mario Bros. Movie" and the upcoming "Fast X" and "Oppenheimer."

4. Coke reports earnings

Coca-Cola came through with an earnings beat Monday morning, as the beverage giant benefited from both price hikes and high demand. And the company is confident it can continue producing strong results. "We have the right portfolio, the right strategy and the right execution to deliver in the marketplace," CEO James Quincey said in an earnings release. Coke's net sales for the most recent period rose 5% from the year-earlier quarter, and the company is sticking with its outlook for the year.

5. Bankruptcy comes for Bed Bath & Beyond

That's about it, folks. Bed Bath & Beyond is on its way out. After months of trying to delay the inevitable with various financing plans and maneuvers, the beleagured home goods retailer filed for bankruptcy over the weekend. In the end, Bed Bath just wasn't relevant anymore after multiple shifts in strategy alienated both shoppers and suppliers in recent years. Now, the company is moving to close its remaining namesake and Buybuy Baby stores, unless another party swoops in and saves the brands. According to court filings, Bed Bath has about 14,000 nonseasonal employees and as many as 50,000 creditors.

— CNBC's Mike Calia wrote this newsletter. Hakyung Kim, Ashley Capoot, Lillian Rizzo, Alex Sherman, Amelia Lucas and Gabrielle Fonrouge contributed.

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