Wall Street's Week Ahead: Banks Talk, Soda Slips
You can never know in advance all the news that will move the market in a given week, but some things you can see coming. From the two leading soft drink giants pouring out fresh financials to bears refusing to hibernate from the silver screen, here are some of the things that will help shape the week that lies ahead on Wall Street.
Monday -- Bank Shot
Most major U.S. banks like to be in the first wave of companies to announce quarterly earnings. They're bean counters: They know how to get numbers out quickly. Citigroup (C) reports on Monday. Bank of America (BAC) and U.S. Bancorp (USB) report two days later, followed by Goldman Sachs (GS) on Thursday morning. Financial institutions have been bouncing back from their Great Recession lows in recent years, but will the good times continue with interest rates rising as the Fed scales back on its quantitative easing stimulus plan?
Tuesday -- Pop Tarts
Folks are holding back on consuming carbonated beverages, and efforts by the soda giants to diversify into new beverage categories haven't been enough.
Coca-Cola (KO) reports first quarter results on Tuesday. PepsiCo (PEP) follows two days later. Analysts see both companies posing lower sales than they did a year earlier. This isn't a surprise given the growing popularity of at-home carbonation globally as a replacement, but why aren't the many other beverage and food companies that Coca-Cola and PepsiCo have been acquiring over the years picking up the slack?
Wednesday -- All Aboard
Railroads may not seem like an industry of the future, but it's still a cost-effective way to transport bulky good and natural resources across the country. Kansas City Southern (KSU) reports on Wednesday, a day after the more prolific CSX (CSX) checks in.
Wall Street sees modest top-line growth at both companies, though Kansas City Southern is the only one expected to improve on its prior year's earnings. As long as the economy is humming along and resources need to get around it's a safe bet that the rail transporters will continue making tracks.
Thursday - Salsa Is Hot
Chipotle Mexican Grill (CMG) has bucked the trend that finds restaurant chains reeling, one huge burrito or hefty rice bowl at a time. Despite inclement weather and grocery products that make it easier to whip up quality meals at home, Chipotle continues to find a way to grow in popularity.
%VIRTUAL-article-sponsoredlinks%Comparable-restaurant sales continue to inch higher, and Chipotle's cult status is undeniable. Chipotle's success should pay off on Thursday when it reports first quarter numbers. Analysts see revenue and earnings per share climbing 20 percent and 16 percent, respectively. That's a lot of carnitas in an industry that is better known for its carnage lately.
Friday -- Bear Necessities
The market exchanges are closed in observance of Good Friday. Naturally it will be quiet on the financial news front, but Friday is also a big day for movie openings. Films that will be making their silver screen debut at a multiplex near you include horror flick parody "A Haunted House 2," Johnny Depp's sci-fi turn in "Transcendence" and Disney's (DIS) "Bears."
Don't look for animated grizzlies in Disney's new movie. It's part of the family entertainment giant's nature documentary series. These haven't fared as well as Disney's traditional movies, but it's not as if the media giant is going to work Winnie the Pooh, Brother Bear or Lotso Huggin' Bear into the mix and betray the spirit of the nature series. Bear with it.
Motley Fool contributor Rick Munarriz owns shares of Walt Disney. The Motley Fool recommends Bank of America, Chipotle Mexican Grill, Coca-Cola, Goldman Sachs, PepsiCo and Walt Disney. The Motley Fool owns shares of Bank of America, Chipotle Mexican Grill, Citigroup, Coca-Cola, CSX, PepsiCo and Walt Disney and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. Try any of our newsletter services free for 30 days.
