S&P 500 Faces 180 Earnings Reports, Key Data Releases

This week, the U.S. stock market is set to face multiple challenges as several key data releases and corporate earnings reports are scheduled. Over 180 companies in the S&P 500 index, including tech giants like Apple, Microsoft, Amazon, and Meta, are expected to release their quarterly earnings. These companies collectively represent over 40% of the S&P 500's market capitalization, making their performance crucial for market sentiment.

Microsoft is scheduled to release its latest earnings report after the market closes on Wednesday. Analysts anticipate that the company's revenue and earnings will grow by approximately 10% year-over-year. Meta's first-quarter earnings report is also due on Wednesday, with market analysts predicting double-digit growth in both profits and sales. Despite a significant drop in stock price from its historical high, Meta's stock has been upgraded from a sell to a hold rating due to its low valuation and steady advertising growth.

Apple's earnings report is expected on Thursday after the market closes. Analysts believe that the downside risks are already reflected in Apple's stock price, with expectations of a 5% year-over-year increase in earnings per share and revenue. Amazon is also set to announce its first-quarter earnings on Thursday, with analysts forecasting a 38% increase in profits. So far, more than one-third of the S&P 500 companies have released their latest earnings reports, with the overall first-quarter earnings growth for the index expected to be around 9.7% year-over-year, according to estimates.

In addition to corporate earnings, the U.S. economy will release several key data points this week. The core Personal Consumption Expenditures (PCE) price index for March is scheduled for Wednesday, with market expectations of a 2.6% year-over-year increase. The April jobs report, due on Friday, is also highly anticipated, with market surveys predicting an addition of 135,000 jobs. However, recent declines in consumer confidence and other economic indicators have raised concerns about the economic outlook.

On Friday, Berkshire Hathaway will hold its 2025 annual shareholders' meeting. Warren Buffett, known as the "Oracle of Omaha," will be joined by his potential successor Greg Abel and insurance business head Ajit Jain to address shareholders' questions. Investors are keen to hear Buffett's views on the economy, trade policies, and Berkshire Hathaway's investment strategies. Given the recent volatility in the U.S. stock market, investors are particularly interested in Buffett's perspective on the current market environment and his plans for Berkshire Hathaway's substantial cash reserves, which exceed $300 billion.

Despite the significant cash holdings, analysts note that Buffett has been cautious about new investments in the past five years, with Berkshire Hathaway net selling stocks in four of the past five years. The shareholders' meeting provides a valuable opportunity for investors to gain insights into Buffett's investment philosophy and Berkshire Hathaway's future direction. The event is expected to influence market sentiment, especially as it coincides with several key economic data releases.