The week ahead 04/18/2022

Good morning.

And sadly Happy Tax Day as well. For those who haven’t yet filed their return, you have until midnight tonight to do so without penalty. If you don’t have the necessary materials to get it done — relax.

You won’t be alone if you’re filing an extension — an estimated 40% of taxpayers were still unaccounted for by the IRS as of April 8th.

One Quick Callout:

With Twitter remaining at the top of the news, it’s a bit alarming to see how poorly social media stocks have performed since their IPOs. I’m not the biggest fan of Facebook nowadays, but you have to at least respect its growth when compared to peers.

In This Post:

  • Quarterly financial reports worth reading

  • Investor events to keep an eye on

  • Major economic releases

  • Event-driven winners

Consider using Seeking Alpha to conduct your research along the way.

The Investing Week Ahead – Too Long, Didn’t Read:

⚡ Earnings reports from major players like J&J, Netflix, P&G, Snap and Tesla. We’re on the lookout for EV production updates (TSLA), consumer goods’ strength (JNJ, PG), and subscribers losing interest (NFLX).

⚡ Amazon, Applied Materials, Charles Schwab, and Lululemon hold investor events.

⚡ Housing data has our full attention, as the real estate market remains at irrational levels.

Key Earnings Announcements:

“I’m back.” — Michael Jordan & Earnings Season.


Monday (4/18): Bank of America, BNY Mellon, Charles Schwab, First National Bank, JB Hunt

Tuesday (4/19): Halliburton, Hasbro, IBM, Interactive Brokers, J&J, Lockheed Martin, Netflix, Travelers, Truist

Wednesday (4/20): Abbott Labs, Anthem, Lam Research, Nasdaq, P&G, Tesla, United Airlines, Whirlpool

Thursday (4/21): American Airlines, AT&T, Boston Beer Co, Dow Inc, Intuitive Surgical, Nucor, Philip Morris, Qualtrics, Snap Inc

Friday (4/22): American Express, Kimberly-Clark, SAP, Schlumberger, Verizon

What we’re watching:

  1. Tesla Production: Earlier in April, Tesla announced a +68% increase in delivery volume year-over-year. Be on the lookout for Elon Musk to shine light on how supply chain shortages, cost increases, and Chinese Covid issues may change the outlook for manufacturing & delivery growth. Also eager to see if Elon will be following up with his hints that Tesla may need to focus on battery development and manufacturing domestically.

  2. Consumer Goods: Investors have turned to Proctor & Gamble and Johnson & Johnson as ways to ride out the volatile markets and seek inflation resistance. Over the last 6 months — P&G is up +11.40%, while J&J has risen +12.35%. We’ll be keeping an eye on whether the consumer goods giants can continue to pass along price increases to customers without harming sales expansion.

  3. Netflix’s Road to Recovery: Netflix has had a horrendous 2022 — down -43% so far. Despite beating on top & bottom lines, Netflix sank -20% after its last earnings call due to slowing subscriber growth. CEO Reed Hastings expected +2.5 million subscribers for Q1, so anything less could cause NFLX to plummet even further.

Investor Events:

A naturally lighter week for investor events, given the chaotic return of earnings reports.

Amazon Web Services (AWS) Revenue Growth, 2013-2021 (via Statista)

Wednesday (4/20): Amazon’s AWS Summit San Francisco, Lululemon Analyst Day

Thursday (4/21): Applied Materials’ “New Ways to Shrink Master Class” Presentation, Charles Schwab Spring Business Update

While it’s a less-than-exciting week for investor events, I still hold positions in AMAT, AMZN, and LULU. We’ll make sure to report back about any potential changes to investor sentiment from the closely-watched conferences / investor days.

Major Economic Updates:

We await key metrics about the thorn in the back of many Americans — real estate.

Median Home Sales Price, 10-Year Outlook

Monday (4/18): Home Builders’ Index

Tuesday (4/19): Building Permits & Housing Starts

Wednesday (4/20): Existing Home Sales

Remember — in order to slow down inflation, the Fed must slow down overall demand. One of the most effective ways to do so is by increasing interest rates and ultimately putting speed bumps in front of the housing market.

The 30-year mortgage rate has passed 5% for the first time since 2011, meaning that both the price of homes and the cost of financing them continue to surge. As rates continue to be raised, speculation surrounds whether the price increases of homes truly will cool off over the coming months.

Events-Driven Winners:

What specific events are moving stocks the most?

Our friends at LevelFields scrub through thousands of data points each week to determine how events impact stock prices.

They also just created a popular “Added to S&P SmallCap 600” tracker. It’s a good example of how watching the events can not only bring some quick one-day gains but also put up-and-coming companies on your watchlist.

If you find these Week Ahead posts helpful, please consider sharing with a friend! Have a great start to your week!

Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

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