Week Ahead on Wall Street

By: James Flippin · May 01, 2023 · Reading Time: 3 minutes

Apple’s Three-Pronged Attack

Apple (AAPL) has joined forces with Goldman Sachs (GS) to launch a new savings account that works in conjunction with Apple Pay and Apple’s credit card. Users can swipe their Apple credit card and send cash back rewards to their Apple savings account. But it begs the question, is it worth accumulating debt to build savings?

Rising interest rates have led to higher rates on savings accounts and attractive cashback rewards. While it’s beneficial to earn rewards on your spending, just remember earning these rewards implies, well, spending. Depending on your financial goals, it might be more pertinent to focus on saving and investing than to maximize rewards by spending more.

Economic News

Today, the ISM manufacturing index will be released. This factory activity metric declined to 46.3 month-over-month in March, the fifth straight month of declines, suggesting rising interest rates and recessionary concerns are weighing on businesses.

Tomorrow, the JOLTs job openings report for March will be released. In February, job openings in the US fell by 632,000 to 9.9 million, signaling a cooling labor market. Additionally, investors will get an update on factory orders. In February, new orders fell by 0.7% month-over-month.

Wednesday, all eyes will fall on the Federal Reserve, as it is expected to announce another interest rate decision. Many Fed members are still concerned inflation is too high and requires additional interest rate hikes.

On Thursday, an update to the balance of trade will be released. In February, the US trade deficit increased to $70.5 billion, the highest total in four months.

On Friday, investors will learn how many jobs the US created in April. In March, the economy saw 236,000 new jobs, the lowest total since December 2020. Additionally, investors will find out if hourly earnings for US workers increased or decreased this month. In March, payrolls increased by 4.2% on a yearly basis.

Earnings Data

Tomorrow will mark the start of another busy earnings week, with major companies like Pfizer (PFE), Starbucks (SBUX), and Uber (UBER) set to report earnings. Ford (F) will also give what is expected to be a positive update to investors. The F-150 maker just became America’s best selling car brand, led by strong EV sales, which surged 41% in the first quarter.

On Wednesday, investors will get updates from CVS (CVS), Kraft Heinz (KHC), and Yum! Brands (YUM). The latter might speak on its recently-announced plans to use AI to forecast how much food is needed at KFC and Taco Bell locations.

Thursday will be another busy earnings day, with reports coming in from Apple, Moderna (MRNA), Block (SQ), Booking Holdings (BKNG), and Lyft (LYFT). Apple, the world’s biggest company by market cap, will likely update investors on its plans to expand in India, along with its new and much-hyped savings account.

On Friday, Marcus & Millichap (MMI) and AMC (AMC) will round out the week by offering insight into the commercial real estate and entertainment industries, respectively.

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