J.P, Morgan was bearish about this week as earnings season ramped up.
“The damage to earnings and activity is likely to linger and the risk is of the (second) wave of infections coming through,” J.P. Morgan analysts said in a note.
Oil will stay in the spotlight tomorrow with inventory data, while earnings arrive from telecom and the airline sectors.
Postmarket earnings today were positive, but stock moves were muted.
Here are three things that could move the market tomorrow.
1. Another Jump in Oil Inventories Expected; Cushing Storage Eyed
Oil continued to dominate headlines today, with crude facing another sharp selloff and June WTI settling down 43%.
Tomorrow the government will issue its weekly report on U.S. oil inventories. The Energy Administration will release the numbers at 10:30 AM ET (14:30 GMT).
Analysts predict a jump in U.S. crude inventories of 16.1 million barrels, compared with a record jump of 19.25 million barrels seen last week, according to forecasts compiled by Investing.com.
In its weekly snapshot of crude inventories, the American Petroleum Institute reported a build of more than 13 million barrels for the week ended April 17 after the bell today.
At 9:30 AM ET, the U.S. Steevol Cushing Storage Report comes out, which will indicate how many barrels are being held at the Cushing, Okla. hub, the spot physical delivery of oil takes place.
Last week’s report showed 5.27 million barrels being held at the hub.
2. AT&T, Delta Report Results
Among the major names reporting earnings tomorrow are AT&T and Delta Air Lines ahead of trading and Las Vegas Sands after the bell.
AT&T (NYSE:T) is expected to have earned 85 cents per share on revenue of about $44.3 billion, according to forecasts compiled by Investing.com.
The company’s current guidance for full-year 2020 stands at $3.60 to $3.70 per share in earnings on revenue of $184 billion to $186 billion.
AT&T will launch its new streaming service HBO Max on May 27.
Delta’s (NYSE:DAL) comments on when it expects business to pick up from the flatline it’s seeing now and whether more government money will be needed should be of most interest to investors.
The carrier is seen posting a loss of $2.79 per share, with revenue coming in at about $5.6 billion.
Las Vegas Sands (NYSE:LVS) should be of special interest as it was one of the first U.S. public companies to face a downturn in business and share price due to Covid-19 because of its casino properties in Macau.
The analysts’ consensus calls for profit of 21 cents per share and revenue of about $2.2 billion.
3. Texas Instruments Could Help Chips; Netflix Subscribers Soar
After-hours earnings may bump sentiment up a little in tomorrow’s trading.
Shares rose 2% postmarket.
Netflix (NASDAQ:NFLX) shares posted small gains after hours following its results.
Its subscriber addition numbers were stellar, but it did miss expectations on the bottom line.
“The company’s strong subscriber gains show that it’s the ultimate stay-at-home stock, following the coronavirus pandemic,” Investing.com’s Haris Anwar said. “But there is no guarantee that a global recession and increased competition will not hit Netflix in the later part of the year. There is little clarity from the company about the future and that’s likely to hurt the stock in the short run.”