A Delta employee helps direct people through a line at Atlanta Hartsfield-Jackson International Airport on March 26.Megan Varner/Getty Images
We are on Artemis watch in our house. The kids were thrilled to see the launch with the middle child declaring she wants to be an astronaut when she grows up. Before that she aspired to be an ice cream scooper. Obviously, I want her to have ambitious goals but I was looking forward to the discounts.
Here are five things to know this week:
Jobs data: Equity investors will have the first chance to react to last Friday’s jobs report out of the United States. The Bureau of Labor Statistics revealed the U.S. economy added a whopping 178,000 jobs, its best showing since December, 2024. However, it came with a massive revision for February, in which the month lost 133,000 jobs vs. the 92,000 previously thought. Stock markets were closed for Good Friday but bond yields and the U.S. dollar rose on the report. “However, even after [Friday’s] rebound, the underlying trend in payrolls remains fairly uninspiring, and the softer wage growth seen in today’s report is a concern for household disposable incomes and spending ahead given the squeeze currently felt at the pump,” wrote CIBC Capital Markets senior economist Andrew Grantham. We’ll get a sense of how intense the squeeze is with the release of U.S. consumer prices for March on Friday morning. Core CPI is expected to clock in at 3.4 per cent, which would be the fastest pace of growth since April, 2024.
Calendar: What investors need to know for the week ahead
The bog of war: Iran continues to be a major flashpoint for investors. The S&P 500 snapped a five-week losing streak, with its strongest weekly showing since the end of November. This was fuelled by hope the U.S. would end its involvement in the war even if the Strait of Hormuz wasn’t reopened freely. The rally is at odds with the price of crude, which reached US$111 – the highest level since the war began and the highest since 2022. Still, energy stocks fell on the week and investors piled back into tech stocks. “Oil prices are not going back to $60-$65/bl range, I think $80-$85 is the new $60-$65,” said Peter Boockvar, chief investment officer of One Point BFG Wealth Partners on my podcast last week. “You are going to have global stockpiling of crude oil … because no country is going to sit through another major supply disruption.” Mr. Boockvar cautions against favouring tech stocks in this environment. “We are in a time where [tech stock] leadership is dissipating … over the next five-10 years this group of stocks is not leading the market.”
Turbulence: Delta Air Lines will be the first airline to report since the oil price shock. The results will come out Wednesday morning although Delta has already warned the fuel spike will be a US$400-million headwind in the quarter. Having said that, demand remains robust with March sales up 25 per cent from last year, with business travel growing by double-digits. Airlines have also been touting the ability to raise prices to offset fuel costs. Delta has the lowest sensitivity to fuel prices, in part because it has its own refinery. Investors have treated Delta as more insulated against the impact of the war with the stock up 3 per cent over the past month compared with a 7-per-cent drop in the airline index.
Crackberry: BlackBerry reports quarterly results Thursday morning as its shares bounce off a one-year low. The security software provider is expected to show tepid topline growth and improved profitability. The key will be the outlook for the full year, which could include a promise to return to positive revenue growth and continued margin expansion. “We believe the company can meet – and potentially beat – its conservative guidance again,” wrote CIBC Capital Markets analyst Todd Coupland. “Since John Giamatteo was named CEO in December, 2023, BB has averaged a +7% revenue surprise versus FactSet and ~143% upside on adjusted EBITDA (non-GAAP).” BlackBerry’s automotive software, QNX, has been growing faster than the overall business despite a slowdown in auto production. However, that hasn’t been meaningful enough for shareholders, with the stock down 31 per cent from its September peak.
Sobering up: Constellation Brands will report results Wednesday after the bell. The alcohol maker has been struggling with lower beer, liquor and wine consumption trends. That is expected to weigh on this quarter with sales projected to fall 14 per cent. However, things may be turning around, argues Citi analyst Filippo Falorni, who recently upgraded the stock to “buy.” “Beer top line trends [are] improving,” he wrote in a preview note. This year will feature easy comparisons relative to last year and could also get a boost from the FIFA World Cup Games in July. “With [Constellation Brands’] valuation still below historical levels, we upgrade to Buy and raise our TP to $175.” The target price implies 16 per cent upside from here.
In the Money with Amber Kanwar is Canada’s top investing podcast. New episodes out Tuesday and Thursday. Subscribe now! www.inthemoneypod.com