Upbeat music plays.
[Screen shows “Weekly Market Outlook with Jeffrey Kleintop”]
[Jeff holds up an illustration of an umbrella labelled “Earnings Season” ]
From a shower of earnings reports, to updated forecasts from the World Bank and IMF, to the Fed’s Beige Book assessment of current economic conditions, I am Jeff Kleintop with 90 seconds on what we’re watching that could move markets this week.
This week continues the temporary ceasefire in the trade war with many tariffs on a 90-day delay. But market volatility could return as we get an early read on the theoretical and real-world impacts from the trade war from global economic forecasting organizations and from global corporations’ earnings reports and guidance.
Many companies are expected to address cost concerns and the impact of tariffs on their earnings reports this week. On Tesla's Tuesday report, investors may want to know how sales are being affected by criticism of Elon Musk's political involvement. On Wednesday, Boeing is set to report and offer insights into tariff effects after China is said to have ordered its airlines not to take any further deliveries of Boeing jets. Railroads Norfolk Southern and Union Pacific reporting on Thursday may signal future earnings could be lower due to tariffs, with automotive and consumer-related carloads hit hardest.
Now last week, the head of the International Monetary Fund
[Jeff holds up an illustration of a globe]
gave a warning that the global economy will slow due to the U.S.-led trade war, but also that a global recession is not in the forecast. The IMF is scheduled to release new forecasts in its World Economic Outlook on Tuesday when we get the details on the impact to each country—which they update twice a year. Their forecasts will likely include a downgrade to global growth with the biggest hits likely in North American economies.
Now the Fed's Beige Book is among
[Jeff holds up an illustration of a book, labelled “Grimms Beige Book”’]
the highlights of a light week ahead for global economic data and central banks. The collection of anecdotes from business leaders around the U.S. is due Wednesday and will likely signal that activity rose very slightly since the end of February. But also, substantial uncertainty remains in the economy potentially impacting business investment.
[Jeff holds up sign saying "Thank You"]
Thanks for watching.
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