After very good earnings from major U.S. banks last week, analysts expect that profits for companies in the S&P 500 will soar by 30.9% from the year-ago quarter, according to data from Refinitiv IBES.

With a few exceptions, financial markets took a nosedive yesterday, caught up in a legitimate consolidation after a big bull run. Technology stocks suffered the most, not surprisingly. The week will be marked by the European Central Bank meeting on Thursday and by the increasing number of first-quarter earnings announcements. So far, the numbers released are very strong and support the central scenario that earnings will rise strongly in the quarter and more broadly in the half year.

Today's earnings calendar includes a diverse range of sectors, from medical with Johnson & Johnson to consumer products with Procter & Gamble and Danone, to luxury goods via Kering, not to mention the digital world with Netflix or Atos and construction with Sika.

Yesterday, Coca-Cola rose 0.6 percent to $54, moving to the top of the Dow Jones index. "We are encouraged by the improvement in our business, particularly in markets where vaccine availability is increasing and economies are opening up, and we remain confident in our outlook for the year," said James Quincey, its CEO. Business was particularly strong in Asia, where it grew 18% organically.

 

Today’s economic highlights:

German producer prices and British unemployment figures are the main indicators of the day.

The dollar is down against the euro at EUR 0.8298. The ounce of gold is stabilizing at USD 1770. In the oil market, Brent crude oil rose to USD 67.46 and WTI crude oil to USD 63.71. The yield on U.S. debt has risen to 1.61% on 10 years. Bitcoin is retreating on the USD 55,800.

 

On markets:

*Johnson & Johnson reported better-than-expected quarterly results showing that sales of its COVID-19 vaccine, whose use is suspended in the U.S., earned it $100 million in the first three months of the year.

* Procter & Gamble reported better-than-expected quarterly sales on Tuesday and confirmed its annual guidance.

* Travelers reported first-quarter profit that beat market expectations as higher returns helped cushion the impact of the cold snap that hit several U.S. states in February.

* Lockheed Martin raised its full-year revenue and profit guidance after its ship and helicopter manufacturing unit delivered a better-than-expected first-quarter profit.

* Abbott’s profit more than tripled in the first quarter, supported in particular by strong demand for COVID-19 test kits, but its sales were below the Refinitiv consensus. The stock is down 2% in pre-market trading.

* Apple will hold its first event of the year on Tuesday and may announce new products.

* Chief Executive Elon Musk said a Tesla's autopilot was not activated when it apparently crashed into a tree in Texas on Saturday, killing both occupants. Two U.S. agencies have opened an investigation into the crash.

* IBM gained 2.6 percent in premarket trading after reporting the strongest quarterly revenue growth in more than two years from its cloud computing services.

* United Airlines reported a larger-than-expected quarterly net loss of $2.4 billion on Monday as fuel prices rose and the airline's flight volumes fell amid weak demand from the pandemic. In after-hours trading, it was down 1.8%.

* Altria and Philip Morris lost more than 2% in pre-market trading after the Wall Street Journal reported that the U.S. is considering imposing a nicotine reduction on cigarette manufacturers.

* Xerox is down 1.3% in premarket trading after reporting a weaker-than-expected first-quarter profit, as the company said its business is still being impacted by the Covid-19 pandemic.