The Reopening of the Plunging Economies

While investors might find solace in reopening plans for global economies, they are also bracing for a series of economic reports, which will reiterate the global economic turmoil created by the pandemic. Caution will prevail over the renewed optimism as investors will be getting back to a “new normal” as governments cannot risk the global economy shutting down again.

How and When?

The “Great Lockdown” has caused unprecedented economic pain, which has put tremendous pressure on governments to unveil reopening plans with differences of opinions over how, when, and which businesses should resume.

World leaders are faced with tough decisions trying to manage an unparalleled health crisis and an economic crisis. As governments keep unveiling plans and updates, investors will likely monitor the stages of easing lockdown restrictions against a barrage of economic data to gauge the pace of global recovery.

Economic Data – Inflation and Retail Sales

There is no doubt that market participants are bracing for grim economic reports. The labour market reports in major economies have been shattering. In the US, total nonfarm payroll employment fell by 20.5 million in April, and the unemployment rate rose to 14.7%, wiping out a decade of growth.

This week, Inflation, Retail Sales, and Gross Domestic Product will be closely monitored to gauge the impact of the novel coronavirus further. China’s Retail Sales and Industrial Production will be eyed. April figures are expected to confirm the economic recovery and may also help determine the pace of recovery for the world’s second-largest economy, which was the first country severely hit by the pandemic.

Earnings Season

The last few weeks saw leaders of key industries report their quarterly results. This week the calendar will be less packed as the earnings season is winding up. The first-quarter earnings results have so far not dented the bounce in the broad stock market. Under Armour, Marriott International, and Cisco Systems will be among those reporting earnings this week.

Monday

Under Armour
Under Armour, Inc. (NYSE: UA, UAA) will release the results of its first quarter (ended March 31, 2020) on Monday, May 11, 2020, at 5:55 AM (ET). Following the news release, Under Armour management will host a conference call at approximately 8:30 AM (ET) to review results.

Marriott International
Marriott International, Inc. (NASDAQ: MAR) will report first-quarter 2020 earnings results on Monday, May 11, 2020, at approximately 7:00 AM (ET).  The company will hold a conference call for the investment community on the same day at 8:30 AM (ET).

Tuesday

Toyota Motor
On May 12, Toyota Motor Corporation (TMC) will live stream its financial results press conference for the fiscal year ended March 31, 2020. The financial results themselves will be disclosed at 01:10 PM (JST).

Wednesday

Cisco Systems
Cisco has scheduled a conference call after the close of the market on Wednesday, May 13, 2020, at 1:30 PM (PT); 4:30 PM (ET) to announce its third-quarter fiscal year 2020 financial results for the period ending Saturday, April 25, 2020.

Applied Materials
Applied Materials, Inc. (NASDAQ: AMAT) will hold a webcast to discuss its second quarter of fiscal 2020 financial results on Thursday, May 14, 2020, at 4:30 PM (ET) / 1:30 PM (PT).

Friday

JD.com
JD.com, Inc. (NASDAQ: JD), China’s leading technology-driven e-commerce company transforming to become the leading supply chain based technology and service provider, will release its unaudited first quarter 2020 financial results on Friday, May 15, 2020, before the market opens. The company’s management will hold a conference call at 7:30 AM, Eastern Time, on May 15, 2020, (7:30 AM, Beijing/Hong Kong Time on May 15, 2020) to discuss the first quarter 2020 financial results.

DraftKings
DraftKings Inc. (Nasdaq: DKNG), will release DraftKings’ and SBTech’s first quarter 2020 results, achieved prior to the close of the companies’ business combination with Diamond Eagle Acquisition Corp., prior to 8:30 AM (ET) on May 15, 2020. At 8:30 AM (ET) on the same day, DraftKings will host a conference call to discuss the results.

Key Events of the Week

Tuesday
REINZ House Price Index (New Zealand)
Consumer & Producer Price Index and Foreign Direct Investment (China)
Leading Economic Index (Japan)
Consumer Price Index and Monthly Budget Statement (US).

Wednesday
BRC Like-For-Like Retail Sales (UK)
Gross Domestic Product (Japan)
Westpac Consumer Confidence, and the Wage Price Index (Australia)
RBNZ Rate Statement, Interest Rate Decision, Monetary Policy Statement, and Press Conference (New Zealand)
Industrial & Manufacturing Production, and Gross Domestic Product (UK)
Industrial Production (Eurozone)
Producer Price Index (US)
EIA Crude Oil Stocks (US).

Thursday
Budget Release (New Zealand)
Consumer Inflation Expectations, Full Time Employment, Employment Change, Participation Rate, and Unemployment Rate (Australia)
Harmonized Index of Consumer Prices (Germany)
Economic Bulletin (Eurozone)
Initial Jobless Claims (US).

Friday
Business NZ PMI (New Zealand)
NBS Press Conference, Industrial Production and Retail Sales (China)
Gross Domestic Product (Germany)
Employment Change and Gross Domestic Product (Eurozone)
Retail Sales, Industrial Production and Michigan Consumer Sentiment Index (US)
Retail Sales (Canada).