Earnings season
As fears of the coronavirus outbreak push global stocks into reverse, U.S. companies prepare to unleash their results on the markets.
Fourteen of the thirty companies making up Dow Jones industrial Average (DJIA) are due to report this week including Apple and Microsoft.
S&P 500
The S&P 500, not wishing to be left out of the reporting frenzy, is also due to report this week. Results from 141 of the S&P 500 will be released, including, Facebook, Amazon, AMD and Tesla. So far, around a third of the S&P 500 have reported.
The general consensus for S&P 500 suggests that net income is likely to fall, ans by around 1.9%. Please be aware that analysts can be wrong – the last quarter came in better than expected. We’ll see…
Apple
Results from Apple – now a $1 trillion business, are expected to be good. The new Apple TV+ streaming service came online, sales of the iphone 11 will be for a full quarter (and at Christmas too) and with the new the AirPods – these are all expected to boost Apple’s earnings.
Microsoft
Reports will likely focus on Microsoft’s growing and successful cloud business. The Windows 7 operating system was finally mothballed in January possibly aiding Windows 10 sales.
Boeing
Expect Boeing brace itself again due to the continuing fallout over the 737 Max. It was reported recently that Boeing has secured some $12 billion in additional funding. It has some good news with the successful maiden flight of its new wide body twin engine airliner.
As well as Apple, Facebook, AMD, PayPal, Starbucks, GE and Tesla are also due to report.
Good results to come from U.S. businesses this week?
The ‘promise’ of positive results to be reported this week will likely encourage U.S. stocks to rebound somewhat from Monday’s lows despite the fears surrounding the coronavirus outbreak in China.
U.S. consumer confidence ticks up
The U.S. consumer confidence index climbed from 128.2 to 131.6 in January. The U.S. economy started 2020 in good health after being buoyed by the phase one trade deal with China, a stock market on steroids and the lowest unemployment for fifty years.
Apple revenues reported after market close exceed expectations.