Market snapshot: big week for results starts now

It's a massive week for US tech results, but there's a central bank meeting and UK corporate results too.

26th April 2021 08:15

by Richard Hunter from interactive investor

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It's a massive week for US tech results, but there's a central bank meeting and UK corporate results too.

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Investors will be on high alert as an abundance of data drops from all angles this week.

Quite apart from a raft of corporate earnings with the tech sector being in particular focus, the latest US GDP reading is expected, while the Federal Reserve meeting could provide further clues on the economic direction they are anticipating.

The data will follow on from more strong readings in factory activity and new housing sales which helped the S&P 500 to another record closing high on Friday. 

As comparatives become easier over this quarter and indeed the next, as the full effects of the pandemic last year are lapped in company numbers, a meaningful return towards normality is expected. At the same time, companies will have nowhere to hide if they miss expectations, especially set against share prices reflecting hopes of a strong return to form.

Indeed, in the year to date, both the Dow and the S&P 500 are now ahead by 11.2%, with the Nasdaq also receiving some buying interest ahead of this tech heavy week to stand up by 8.8%.

In the UK the pace of corporate releases is equally frenetic, with the FTSE 100 index in particular focus as some of its major sectors report. The banks, oils and pharmaceuticals will each have their own views on the current effects of the pandemic. This could range from the possibility of lower than provisioned bad debts for the banks, through to any stimulus which the recent strength of the oil price may have had in improving the fortunes of the beleaguered oil majors.

Meanwhile, other stocks which have been in particular pandemic focus will also provide updates, with full-year numbers from Sainsbury's (LSE:SBRY) and an update from Unilever (LSE:ULVR). Persimmon (LSE:PSN) should see further benefit from the current hosts of tailwinds in the sector, while Flutter Entertainment (LSE:FLTR) could provide more detail on the burgeoning US market in which it has a growing toehold and which has helped to propel its shares ahead by 68% over the last year.

The immediate direction of the FTSE 100 will therefore be driven by each of these various inputs which, accompanied by a warming sentiment generally towards the UK as an investment destination, could consolidate the 7.2% rise which the index has seen so far this year.

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Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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