A Busy Week Ahead for Investors: Fed's Rate Decision and Big Company Earnings
Anticipated Market Movements over the Upcoming Week
The week of May 5, 2025, is gearing up to be a thrilling ride for investors, as the Federal Reserve's interest rate decision, along with revenues from major tech and entertainment giants, unfold.
Get ready for announcements from tech titans like Palantir (PLTR), Advanced Micro Devices (AMD), Uber Technologies (UBER), and Walt Disney (DIS). The week will also deliver fresh insights into consumer credit, productivity, and the U.S. trade balance.
This comes after a rollercoaster ride in April when stocks managed to shake off their losses and the S&P 500 embarked on an impressive winning streak. As we step into a new phase, Warren Buffett announced his intention to step aside at the end of the year.
Monday, May 5 Highlights:
- S&P services PMI (April)
- Palantir, Vertex Pharmaceuticals (VRTX), Ford (F), Tyson Foods (TSN), Clorox (CLX), and Onsemi (ON) earnings reports
Tuesday, May 6:
- The Federal Open Market Committee (FOMC) meeting begins
- U.S. trade deficit (March)
- Advanced Micro Devices, Ferrari (RACE), Arista Networks (ANET), Duke Energy (DUK), Marriott International (MAR), and Electronic Arts (EA) earnings reports
Wednesday, May 7:
- FOMC interest rate decision
- Fed Chair Jerome Powell press conference
- Consumer credit (March)
- Novo Nordisk (NVO), Uber Technologies, Walt Disney, Arm Holdings (ARM), AppLovin (APP), DoorDash (DASH), Carvana (CVNA), and Occidental Petroleum (OXY) earnings reports
Thursday, May 8:
- Initial jobless claims (Week ending May 3)
- U.S. productivity (Q1)
- Wholesale inventories (March)
- Shopify (SHOP), ConocoPhillips (COP), Anheuser-Busch InBev (BUD), Coinbase (COIN), and Kenvue (KVUE) earnings reports
Friday, May 9:
- Remarks from Federal Reserve Governors Lisa Cook and Christopher Waller, New York Fed President John Williams, Cleveland Fed President Beth Hammack, St. Louis Fed President Alberto Musalem, and Chicago Fed President Austan Goolsbee.
Fed's Rate Decision Amid Political Pressure
As the interest rate decision looms, the Federal Reserve faces escalating political pressure to lower rates. However, analysts predict that the Fed will not lower rates from its current levels (4.25-4.5%) due to recent positive economic data.
Despite pressure from President Trump, the Fed is expected to make its decisions based on economic conditions, rather than political influence. The Fed's post-decision comments and responses from key Fed officials, like Kevin Warsh, may provide further insights into potential rate adjustments.
Investors will also keep an eye on other critical economic releases this week, such as trade balance data on Tuesday and initial jobless claims on Thursday. Additionally, the scheduled report on consumer credit could shed light on consumer spending habits, while Thursday's wholesale inventories report might indicate supply chain resilience in the midst of escalating trade tensions.
Companies Reporting Earnings
Ford is set to kick off the week's earnings, as the automaker has adjusted its outlook amid pressures from Trump's automobile tariffs. Palantir's earnings report after the bell Monday could provide insights into demand for artificial intelligence software.
Advanced Micro Devices' earnings report on Tuesday will be significant, given the semiconductor industry's struggles under tightening trade restrictions to China. Ride-hailing company Uber and Danish pharmaceutical firm Novo Nordisk are set to follow on Wednesday, along with Disney. The entertainment giant's earnings report on Wednesday comes after a solid quarter as it expands its streaming service while reportedly cutting staff in its news and cable TV divisions.
Other companies slated to reveal their latest quarterly financial results this week include Coinbase, Shopify, brewer Anheuser-Busch InBev, energy firms ConocoPhillips and Occidental Petroleum, delivery service DoorDash, online used car retailer Carvana, and video game maker Electronic Arts.
This article has been updated since its initial publication to include additional information and context.
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- On Monday, May 5, Palantir, Vertex Pharmaceuticals, Ford, Tyson Foods, Clorox, and Onsemi will release their earnings.
- The Federal Open Market Committee (FOMC) meeting begins on Tuesday, May 6, and Advance Micro Devices, Ferrari, Arista Networks, Duke Energy, Marriott International, and Electronic Arts will reveal their earnings.
- On Wednesday, May 7, following the FOMC interest rate decision and Chair Jerome Powell's press conference, Novo Nordisk, Uber Technologies, Walt Disney, Arm Holdings, AppLovin, DoorDash, Carvana, and Occidental Petroleum will announce their earnings.
- This week's earnings calendar also includes Shopify, ConocoPhillips, Anheuser-Busch InBev, Coinbase, Kenvue, and other companies, with each report providing investors insights into their financial performance.
- Despite mounting political pressure, the Fed is predicted to maintain current interest rates and provide further insights into potential adjustments after the Wednesday rate decision, with comments from key Fed officials like Kevin Warsh potentially offering guidance on future rates.
