Important releases to watch for as earnings season starts off

Part 6
Important releases to watch for as earnings season starts off (Part 6 of 6)

Important releases to watch for as earnings season starts off

Earnings season officially starts this week

Earnings season starts off Tuesday with the traditional report out of Alcoa (AA). We’ll hear from a couple big banks later in the week, specifically JP Morgan (JPM) and Wells Fargo (WFC). Economically, there’s very little market-moving data this week. Bonds will get a bit of a break, although market participants will likely delve deep in the FOMC minutes to try and find out how real the “as soon as six months” comment from Janet Yellen was.

NFIB Small Business OptimismEnlarge Graph

Economic data this week

Monday, April 7

  • Consumer credit

Tuesday, April 8

  • NFIB Small Business Optimism
  • JOLT job openings

Wednesday, April 9

  • MBA Mortgage Applications
  • Wholesale sales
  • Wholesale inventories
  • Minutes from the March FOMC meeting

Thursday, April 10

  • Initial jobless claims
  • Import prices
  • Bloomberg Consumer Comfort

Friday, April 11

  • Producer Price Index
  • University of Michigan Consumer Confidence

Earnings reports this week

  • No earnings reports this week

Impact on mortgage REITs

Mortgage REITs like Annaly (NLY), American Capital Agency (AGNC), and MFA Financial (MFA) are highly interest rate–sensitive. The only thing they’ll care about will be the FOMC minutes and trying to divine when the Fed will start increasing interest rates. Tapering is on autopilot at this point, so for the REITs, it’s all about when short-term rates go up.

Impact on homebuilders

Homebuilders like Lennar (LEN) and PulteGroup (PHM) will probably focus most on the NFIB Small Business Optimism Report. Everyone is waiting for things to turn around for small business and to see them start hiring. The builders are hoping to see a more robust economy bring back the first-time homebuyer, who has been MIA since the real estate bust.

Impact on commercial REITs

Commercial REITs will focus on the NFIB Survey, which will be big for office REITs like Kilroy (KRC), Vornado (VNO), and Brookfield Office Properties (BPO).

To learn more about key releases that affect REITs and other investments, see the Market Realist series The Bureau of Labor and Statistics jobs report: Investor takeaways.

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