Wall Street Flat as Investors Await Jackson Hole
Tuesday 19 August 2025
28 April Week Ahead: Magnificent 7 Earnings, US Inflation & More
As April winds down and May approaches, markets could be in for an eventful stretch. This week is packed with potentially market-moving events from the highly anticipated earnings reports of the Magnificent Seven to key US economic data, including inflation figures and Nonfarm Payrolls.
Here’s a look at what traders and investors should watch for, and what to expect:
Big Tech Earnings Reports
The Major Magnificent Seven companies, Microsoft, Meta, Apple, and Amazon, are set to report earnings this week amidst rising tariff economic uncertainty, the ongoing battle over AI supremacy, and the rising US-SINO trade tensions.
Microsoft (Wednesday, 30 April)
According to some analysts, Microsoft’s earnings on Wednesday are expected to show a Q3 revenue of $68.44 billion (a 10% YoY rise) and an EPS of $3.21 (compared to $2.94 a year earlier).
Like many of its tech peers, Microsoft’s performance is expected to be driven by the ongoing AI hype. Revenue from the company’s Intelligent Cloud segment (like Azure) is projected to come in at $26.13 billion (marking an 18% gain).
Meta (Wednesday, 30 April)
Meta’s earnings are projected to show quarterly EPS of $5.21 (marking a 10.6% YoY growth) and revenue of $41.22 billion (a rise of 13.1% from the year-ago quarter). Many investors seem to be worried about the company’s advertising business, which is expected to have influenced its performance. It's also important to consider that the earnings report coincides with Meta's involvement in a Federal Trade Commission antitrust lawsuit on the same day.
Apple (Thursday, 01 May)
Wall Street analysts anticipate Apple's EPS between $1.60 and $1.61, reflecting a year-over-year increase of approximately 4.6% to 5%. Revenue is projected to reach around $94.08 billion, marking a 4% rise compared to the same quarter last year. Analysts remain optimistic about sustained double-digit growth in Apple’s high-margin Services segment, encompassing digital content, warranties, and subscriptions. This growth is expected to help counterbalance any potential softness in hardware sales.
Amazon (Thursday, 01 May)
Analysts expect Amazon to report Q1 revenue of $144 billion, with EPS estimates ranging from $0.98 to $1.30. Zacks and Nasdaq project a $1.37 per share, a 21% increase from last year's same quarter. Amazon's performance, particularly in its cloud business (AWS), will be closely watched as investments in cloud and AI drive growth and margin expansion.
Investors will focus on Amazon’s quarterly guidance amid macroeconomic uncertainties and shifting consumer behaviour. With recent cost-cutting efforts, expectations for further margin improvement are high. Additionally, updates on AI investments, capital expenditures, and the impact of tariffs on Chinese-sourced goods will be key, though Amazon's scale helps mitigate trade challenges.
However, these are only projections, and time will tell how these companies actually fared.
More Earnings to Keep in Mind
Besides Mag7 earnings, traders and investors may want to keep tabs on the following releases:
Tuesday, 29 April
Wednesday, 30 April:
Thursday, 01 May:
Friday, 02 May:
What will these companies reveal about the economy and their respective market sectors?
US PCE: The Fed’s Preferred Inflation Gauge
The US Personal Consumption Expenditures (PCE) index, a key measure of inflation closely watched by the Federal Reserve, is set to be released on Wednesday, 30 April.
The report will reflect March's inflation data, and traders will be keen to see what it reveals. For context, February's PCE report met expectations, yet inflation remained above the Federal Reserve's 2% target. (Source: CNBC)
US NFPS: An Update on the US Labour Market
US Nonfarm Payrolls (NFP), a key indicator of labour market health in the world’s largest economy, will be released on Friday, May 2. The March report surprised many with a significant increase in job creation, even as unemployment remained elevated. What will the upcoming report reveal?
More Economic Reports to Track
Here are some additional reports worth noting:
Tuesday, 29 April
US Advanced Trade Balance
US Advanced Wholesale Inventories
US Advanced Retail Inventories
US Job Openings
Euro Area Economic Sentiment
Euro Area Industrial Sentiment
Wednesday, 30 April:
US ADP Employment
US Q1 Gross Domestic Product (GDP)
US Pending Home Sales
Australia Q1 CPI
Thursday, 01 May:
US Initial Jobless Claims
US Construction Spending
Australia S&P Global Manufacturing PMI
Friday, 02 May:
US Factory Orders
US Employment Report
Japan 3-Month Bill Auction
Conclusion
As April comes to a close and May begins, the financial landscape is poised for a critical week. The earnings reports from the Magnificent Seven tech giants, Microsoft, Meta, Apple, and Amazon, along with vital economic data such as the US PCE inflation index and Nonfarm Payrolls, will provide investors with crucial insights into market dynamics. With ongoing concerns about inflation, trade tensions, and AI investments, traders should brace for volatility. These upcoming events could play a significant role in shaping market sentiment for the near term.
*Past performance does not reflect future results.
