What to Expect in the Week Ahead (PLTR, DIS, OXY, RIVN Earnings; US Michigan Consumer Sentiment)

Moomoo Breakfast US joined discussion · May 5 03:52

What to Expect in the Week Ahead (PLTR, DIS, OXY, RIVN Earnings; US Michigan Consumer Sentiment)

Earnings Preview: Market Eyes More Reports After Apple's Surge

Following a positive turn of events spurred by Apple's better-than-expected earnings, Wall Street braces for another action-packed earnings week, with key players across various sectors slated to disclose their financial performance. The upbeat market sentiment is anticipated to encounter further tests as companies reveal their earnings amid a vibrant economic backdrop.

Investors are setting their sights on $Palantir(PLTR.US)$, which is due to report its earnings on Monday. The spotlight remains on the company's commercial segment, particularly after a robust final quarter in 2023 that saw commercial demand for its AI platform soar. With approximately 45% of its 2023 revenue stemming from commercial activities and a hefty $178.4 million U.S. Army contract recently secured, expectations are high. Palantir CEO Alex Karp has signaled confidence in the U.S. commercial business as a growth catalyst. Analysts, echoing this sentiment, forecast Palantir's commercial segment revenue to hit $290.4 million for Q1, a leap from the prior quarter's $284 million and significantly up from the $236.1 million year-over-year.

$Disney(DIS.US)$ will unveil its fiscal second-quarter earnings before Tuesday's opening bell. All eyes are on Disney+ and Hulu as projections indicate continued subscriber growth, partly fueled by the company's strategic bundle of Disney+, Hulu, and ESPN+. Analyst estimates from Visible Alpha suggest Disney+ Core and Hulu subscribers will reach 117.2 million and 50 million, respectively, marking a rise from the previous year's figures. With J.P. Morgan's survey highlighting Disney's bundle as increasingly popular, and UBS analysts pointing to streaming as a substantial upside potential, the market is eager to gauge the impact of Hulu's consolidation on the segment's performance.

EV companies' earnings are also on the spotlight. $Lucid Group(LCID.US)$ and $Rivian Automotive(RIVN.US)$ are on deck to report earnings on Monday and Tuesday, respectively.

With commodity prices surging this year, investors are shifting their attention to energy companies. $Occidental Petroleum(OXY.US)$ and $Enbridge(ENB.US)$ are due to share their earnings results on Tuesday and Friday, respectively. These reports will offer insights into how energy players are navigating the current economic climate. The dividend investors are also waiting for more clues to see whether dividend from Enbridge is safe.

For economic data, it will be a relatively quiet week in the US. Economic calendar will be light with investor attention pivoting to policymakers' remarks for insights into the Federal Reserve's monetary stance. Key indicators such as the preliminary reading of Michigan Consumer Sentiment, the monthly government budget statement, and weekly jobless claims will also be closely watched. Forecasts suggest there was a slight deterioration in consumer morale during May, a second consecutive month of decline.