Market Readies for Mag 7 Earnings & FOMC Meeting

Added: 2026-05-05

[00:00:01]All right, Kevin Hanks is live at the CBOE has our prebell playbook. We have our list of the mega cap earnings. We are ready. Kevin, tell us a little bit about how you're feeling on this Monday.

[00:00:15]>> Good morning, Nicole. It's going to be a big one. Obviously, this will be a week of massive earnings. 181 in the S&P, 32 in the NASDAQ. It's not just quantity, it's quality. Wednesday, just Wednesday afternoon alone after the bell, we get Microsoft, Amazon, Meta, Google, throw Qualcomm in there as it's up this morning. Uh, you know, and then Apple on Thursday with also SanDisk and Western Digital. I mean, there's massive names coming out and that would be a full week, but we have more. We have economic data coming out. We got durable goods and GDP and income and outlays, all those coming out, but that would be enough for a week. But we've got Fed activity here. We've got Jerome Pal. It it's going to be his last uh meeting as the Fed chair, but does he stay for two more years or does he leave? What does that do to Kevin Myron? I mean, Tom Tillis has cleared the way now for a Wednesday Senate vote on Kevin War. So Jerome Pal is going to be, you know, finishing the meeting on Wednesday, making the announcement, having the press conference. Kevin Worsh is going to get voted on by Senate Banking. So there's just so much coming out. I think it's going to be one of those weeks where every 10 minutes some news is going to be made. There's news already being made this morning Shell is buying a Canadian oil company. I think uh there's news on Open AI creating a phone. That's why Qualcomm is up and Apple is down this morning. It's going to be data. It's going to be earnings.

[00:01:58]It's going to be Fed. It's going to be geopolitics. There's news from Iran and Russia now getting slightly involved.

[00:02:06]So, I just think it's going to be one of those weeks where every 5 to 10 minutes, you better be ready for some news headline. Nicole, >> I love it. I like how you delivered it, too. But wait, there's more. And there's more. And you know what? There's more because you have Sam Alman and Elon Musk in court this week and so people will get to know these two characters even better. Um so we have so much to cover and you did amazing covering so many of those names that we are watching.

[00:02:35]Verizon with earnings as well. Um look with the uh Kevin Walsh story if he gets the approval um of the committee on Wednesday morning then he can in fact sit in on the meeting on Wednesday.

[00:02:49]Right. So, he has to move forward. Tom Tillis stepped out of the way, as you said, now that they dropped the DOJ investigation to Powell. Steven Meyer, it's my understanding he's out. He's not going to stick around. Um, from what I last heard. So, um, any final thoughts?

[00:03:03]I mean, you don't expect any moves or what kind of final words may may we hear from Powell? Um, maybe about Fed independence or something in his last words.

[00:03:14]>> Yeah. Could could it be where he he does a broad look of his tenure and what has happened? Is it a wrap up of his career as the Fed chair or does he stick to the job of talking about where the economy is, what interest rates are doing? Does he stick to script like that? So, yeah, it's going to be fascinating. Who knows what Jerome Pal's uh is is going to say or do. Yeah, most people think that Steven Myron is going to back out and go back to his job in the Trump administration, but it's hard to say.

[00:03:46]He's been a good ally for what the Trump administration wants with with w with with with interest rates. So, we you know, there's another thing to happen throughout the week. Then we're getting uh the Bank of Japan is coming out with an interest rate decision tonight. The Bank of England and the ECB are both this week. So, we'll get that as well. I think there's, like I said, this is going to be one, you know, mark where the S&P, the NASDAQ are right now. Mark where they are at the end of the week and see the volatility. The VIX is sitting up at 19. It's been higher, but it's certainly elevated in terms of implied volatilities, but you've got markets at or near all-time highs and frankly overbought in terms of momentum.

[00:04:32]So, it's going to be a massive week.

[00:04:33]Nicole, get ready.

[00:04:35]>> Yeah. You know, also UAL, you had uh Scott Kirby saying that he did approach American Airlines. So, we'll see if there's any development with that. Um, you had a global partnership of Pelaton and Spotify. We have so many different little pieces of news. Iran, I mean, it seems, you know, you know that President Trump canled the envoy on Saturday, did not go to Islamabad. I guess talks are still happening. I mean over the phone, >> you know, there's headlines like Iran coming out this morning and saying that they feel they should have the right to police the straight of Hormuse. Well, you know, that's never going to happen.

[00:05:13]Then you've got an email that or a headline that Vladimir Putin says their supreme leader, Iran Supreme Leader, reached out to him this past week. So, there's so many headlines. We haven't even talked about geopolitics. the fact that crude oil is starting the week up around 2%. It was up right on the open uh Sunday night in in futures up 2% got down to below 1% now it's rallying again on headlines this morning headlines will always move that market but this might be a week where other things move the market ju just as much with think about just one term capex spending right a quarter ago we reacted negatively to capex spending is it going to be a better reaction if they they're more responsible. Does that hurt Nvidia? It's a tricky little place we find ourselves in the market. Market doesn't like too much capex spending, but if they they decrease it or more responsible, does that hurt Nvidia? So, there's so many different topics we could talk about.

[00:06:15]How much time you got today?

[00:06:17]>> Yeah. Well, that's true. And you know, even OPCO, which pulled the the number back on Microsoft, they have a 5:15 from 6:30 and they were saying, "Look, we're going to look at the capex spending. We do see a favorable earnings coming out from Microsoft this week, but they had the the M6 365 disruption. What's going on with AI? So, they did pull back. So, we'll see. And they did mention the capex spend, and that's something that's real. Um, okay, Kevin Hanks, it's great to see you there live at the CBOE this morning. Thank you.