Starbucks, Ford, Apple Lead Another Busy Earnings Week

The companies are among 162 in the S&P 500 slated to report during a busy earnings week as investors weigh signals about the direction of the broader economy. 

U.S. economic growth slipped in the first quarter, with gross domestic product up a seasonally adjusted 1.1%, which was down from the 2.6% growth reported in the fourth quarter. Many economists expect the economy to lose more steam as the year progresses, predicting a recession in the second half.

Companies have so far reported a 3.7% decline in earnings for the first three months of year, marking the second straight quarter that the index has reported a drop in profits, according to FactSet. 

Still, those results have broadly topped Wall Street expectations. According to FactSet, roughly halfway through earnings season, 79% of S&P 500 companies have reported per-share earnings above analyst estimates, the best performance since the end of 2021.

The coming week will provide insights on an array of sectors, including food and travel.

Airlines have already indicated they expect a busy summer travel season. Norwegian Cruise Line Holdings Ltd. reporting Monday, Marriott reporting Tuesday, and Priceline.com owner Booking Holdings Inc. on Thursday will look to show how current demand stacks up for them.

Starbucks, issuing results Tuesday, is expected to shed light on the health of discretionary spending in Laxman Narasimhan’s first report as chief executive. 

Results for Kraft Heinz Co. on Wednesday and Kellogg Co. on Thursday will offer further insights into how consumers are reacting to higher prices in the grocery aisle.

Hershey Co. recently said grocery sales continue to do well compared with some other categories. “It’s a much more affordable option for consumers versus dining out,” Chief Executive Michele Buck

Real-estate marketplace Zillow Group Inc. will report Wednesday amid a sputtering start to the peak home-selling season, with U.S. existing-home sales posting their biggest annual decline in 11 years.

Results for car maker Ford, reporting Tuesday, will provide another indication of the health of auto sales. In March, the company said it expects to lose $3 billion on its electric vehicles business this year.

Ride-hailing companies Lyft Inc. and Uber—scheduled to report on Monday and Tuesday, respectively—could clue investors in on the pace of services-related spending. Lyft said it is cutting more than 1,000 jobs, in a new round of layoffs affecting 26% of the company’s employees. 

Apple is set to report its results on Thursday, following better-than-expected reports from Amazon.com Inc.,

Results from healthcare behemoth CVS, coming Tuesday, will be watched closely ahead of President Biden’s move to end the Covid-19 national emergency. Investors are also watching for updates on Pfizer Inc.’s acquisition of Seagen Inc. for $43 billion, as well as on cancer vaccines being produced by Moderna Inc. and Merck & Co. 

Other companies unveiling their results next week include cleaning-products maker Clorox Co. , entertainment companies including Paramount Global and Warner Bros. Discovery Inc., and crypto exchange Coinbase Global Inc., which faces a potential lawsuit from the Securities and Exchange Commission.

Write to Sabela Ojea at [email protected]