What to Watch in the Day Ahead - Wednesday, April 22
Kinder Morgan Inc Class P KMI | 31.74 | +0.03% |
Boston Scientific Corporation BSX | 62.07 | -5.51% |
Molina Healthcare, Inc. MOH | 175.94 | +0.71% |
Texas Instruments Incorporated TXN | 277.14 | -1.80% |
Elevance Health ELV | 344.76 | -0.44% |
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Tesla is expected to report quarterly free cash flow deficit for the first time in two years, with analysts predicting the first year of negative cash flow for the first time since 2018 in its first-quarter earnings report. The Elon Musk-led company's first-quarter deliveries missed estimates. However, Wall Street expects revenue for the three-month period to jump from a year ago when production line shutdown and the billionaire's right-wing politics hurt supply and demand respectively.
Boeing is scheduled to report its first-quarter results, where investors will watch out for the company's outlook for the year.
AT&T is expected to post a rise in revenue when it reports first-quarter results, helped by strong wireless and broadband demand.
Philip Morris International is expected to post a rise in its first-quarter revenue. Investors will look out for the performance of its smoke-free products, including IQOS and Zyn, as well as cigarette volumes and management commentary on its full-year outlook.
IBM is expected to report a rise in its first-quarter revenue, helped by strong growth in its software segment, which includes its high-margin hybrid-cloud unit Red Hat, and a suite of AI tools under the watsonx brand. Investors are also expecting commentary on how data-streaming firm Confluent is being integrated into the company's operations.
Texas Instruments is expected to report a rise in its first-quarter revenue as it benefits from strong demand for its analog chips used in artificial intelligence data centers and the industrial market.
Chipmaking tools supplier Lam Research is expected to report its third-quarter earnings. Investors will be looking for commentary about how the artificial intelligence boom is driving up demand for wafer fabrication equipment, which are sophisticated and expensive tools to make chips. Some analysts have said that Lam is expected to continue taking a larger share of the market, especially in critical chip manufacturing steps like etching and deposition, due to increasing complexity in chip designs and new products from the company.
GE Vernova is due to report its first-quarter earnings, with investor focus on demand for gas turbines and grid equipment amid continued utility spending to support data centers and electrification. Analysts expect the company to post earnings per share of $1.88, according to data compiled by LSEG.
Boston Scientific will report its first-quarter results. Investors will be looking on performance from its cardiology and electrophysiology businesses, alongside any updates to its full-year forecast and any commentary on the USA-Iran war supply disruption.
Derivatives exchange CME Group is expected to report a rise in first-quarter profit, helped by strong hedging demand amid macroeconomic pressures affecting the broader markets.
Software company ServiceNow is expected to report its first-quarter results. Investors will be looking for commentary on how artificial intelligence tools from Anthropic and OpenAI are potentially impacting demand for traditional software companies like ServiceNow, as such concerns have sparked a sell-off in software stocks in recent months, leading to what Wall Street has dubbed the "SaaSpocalypse" - a term reflecting the gloom around software-as-service companies.
Moody's is expected to post a rise in first-quarter profit when it reports results. Investors will look for commentary on how the firm is navigating fears around AI and their outlook for the year ahead.
CSX is expected to report solid first‑quarter earnings, though investor focus will be on the durability of its core profit drivers: intermodal volumes and pricing power. Demand has been supported by steady consumer freight flows and a shift toward rail for long‑haul transport, while disciplined pricing and improved network efficiency have helped protect margins, dynamics that have underpinned the railroad's recent performance despite a mixed macro backdrop.
Kinder Morgan is expected to post higher first‑quarter earnings compared with a year earlier when it reports results, as resilient U.S. natural gas demand, including rising power needs driven by new and expanding data centres supporting artificial intelligence, offsets weather‑related disruptions and unusual LNG market dynamics. Investors should also look for management commentary on gas volumes, capital expenditure plans and the impact of winter volatility at its Elba Island LNG facility.
Health insurer Elevance is expected to report its first-quarter results before markets open. Investors are expected to look out for any changes to the company's annual profit forecast and comments on medical costs in its government-backed plans.
Raymond James is set to report its second-quarter results after markets close. Investors will keep an eye on net new assets growth and investment banking pipeline trends.
Molina Healthcare is expected to report its first-quarter results. Investors are expected to look out for changes to its full-year profit forecast and medical costs in its Medicaid business.
Home improvement firm Masco is expected to post a rise in its first-quarter revenue, as price hikes on certain products helped offset higher tariff-related costs and a weak housing market. Investors will look for comments on consumer spending, annual forecasts and efforts to reduce tariff exposure.
Rollins is expected to post a rise in first-quarter sales, helped by steady demand for its pest control products, especially in North America. Investors will look out for comments on pricing strategies and the North American market compared to its competitors in the region.
On the Latin American economic front, Argentina's statistics agency INDEC is expected to report February economic activity data, which likely rose by 0.4% after having risen 1.9% previously.
