The Week Ahead (TSLA, META, GOOG, MSFT, IMO Earnings; PCE Inflation)

It's important to highlight that there is a strong bearish outlook from the sell-side in anticipation of Tesla's first-quarter report, fueled by concerns about declining interest in its electric vehicles and increasing rivalry from both established car manufacturers and emerging Chinese EV companies. The stock of the Elon Musk-helmed firm has seen a nearly 40% decline since the beginning of the year.

Following those reports, investors will shift their focus to the post-market earnings announcements from Microsoft Corporation and Alphabet. As these two tech behemoths together approach a combined market capitalization of almost $5 trillion, their financial performance will be crucial for the continuation of the stock market's current upward trend.

The majority of attention will center on the success of Microsoft's Intelligent Cloud division, encompassing services such as Azure public cloud, Windows Server, SQL Server, Visual Studio, Nuance, GitHub, and Enterprise Services. For Alphabet, the spotlight will remain on the expansion pace of its Google Cloud Platform.

In addition to corporate earnings, the main event as far as macroeconomic updates are concerned will come at the end of the week, with the release of March personal spending and income data.Inside Friday's report, the core personal consumption expenditures (PCE) price index for March, which is the inflation gauge favored by the Federal Reserve is the most important one.

Expectations are for the core PCE price index to show a 0.3% increase from the previous month, consistent with the rise observed in February. The year-over-year rate is anticipated to edge up to 2.7%, slightly down from the 2.8% annual rate reported in the month prior.Should the data reveal a stronger-than-anticipated increase, it could reinforce the Federal Reserve's commitment to its anti-inflationary stance. Conversely, a figure below expectations, particularly if it dips to 2.6% or lower, may fuel speculation about potential interest rate cuts.

Statistics Canada's advance indicator showed retail sales edged up 0.1% in February mostly thanks to higher gasoline prices. A rise in unit auto sales (7% seasonally adjusted) points to some upside risk to the early February estimate but would still leave core retail sales (excluding gasoline stations and vehicles) down in February. Early indications for March are soft—auto sales retraced most of their February increase. RBC's tracking of card transactions also points to a broader pullback in spending in March.