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Jobless claims, Constellation earnings, Lamb Weston: 3 things to watch

Published 05/04/2023, 21:14
© Reuters.
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By Liz Moyer

Investing.com -- Stocks were mixed after weak economic data this week fueled fears about a recession.

The Federal Reserve has been trying to cool off the economy by raising interest rates, but some have feared its rapid and large rate hikes would overshoot and tip the economy into a recession. Wednesday's ADP private payrolls report was weaker than forecast, and that sets up for Friday's report on March jobs from the government. Analysts are expecting the economy added 240,000 jobs last month, lower than the number in February.

The jobs report won't have a big immediate effect on stocks since the market is closed for Good Friday.

But it leads up to next week's kick-off to first-quarter earnings season, with big banks reporting at the end of the week. Analysts and investors will be listening to what the CEOs of these big lenders will say about credit conditions, demand, and consumer behavior.

Futures traders are now factoring in a pause when the Fed meets in May, rather than the quarter of a percentage point hike many expected just a week ago. 

Here are three things that could affect markets tomorrow:

1. Jobless claims

After two weak jobs-related economic reports this week, jobless claim numbers for last week are due out at 8:30 ET (12:30 GMT). Analysts expect new claims of 200,000 for the most recent week.

2. Constellation earnings

Constellation Brands Inc (NYSE:STZ), the maker of beer, wine and spirits, is expected to report earnings per share of $1.84 on revenue of $2 billion.

3. Lamb Weston

Frozen french fry maker Lamb Weston Holdings Inc (NYSE:LW) is expected to report earnings per share of 99 cents on revenue of $1.1B.

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