U.S. companies have barely managed to achieve positive growth so far in this quarterly yield season, but the big test will come in the coming week.
Nearly a quarter of the S&P 500 SPX,
ready for reporting results, with these companies representing 39% of the index at market value, according to calculations based on FactSet data. Because the S&P 500 is aided by market capitalization, this list of companies will have a greater impact on the profit path for the index.
Wages are expected to decline for the fourth consecutive quarter when all results are in for the most recent period, but those companies that have reported so far have been declining. making complete expectations.
The FactSet consensus is now shaping a 5% employment decline for the index, compared to the 6.3% drop estimated a week ago. If profit growth for the S&P 500 eventually comes to an end, it would mark the end of the current employment recession, which occurs when corporate profits fall for two consecutive quarters or more.
Apple Inc. AAPL,
and Facebook Inc. FB,
among next week’s flagship slate events, with Tesla Inc. TSLA,
which will deliver results for the first time since becoming a member of the S&P 500. The three high-profile companies are due to report on Wednesday afternoon and are expected to have higher incomes in the S&P 500. fourth holiday.
The fourth holiday is always crucial for Apple, which will release new iPhones in the fall. With a slightly longer-than-normal launch this year due to the release of push-in time, Apple is expected to post the largest quarterly revenue ever. and the first ever total over $ 100 billion. The tech giant also continued to see benefits from remote work and remote education trends, which have driven strong iPad and Mac sales throughout the COVID-19 crisis.
Full preview: Get ready for Apple’s first $ 100 billion quarter in history
Facebook is also expected to post what should be an all-time high due to strong digital advertising trends during the holiday season. However, the company will have questions about consumer engagement and a decision to ban Donald Trump from the stage forever over his role in inciting the U.S. Capitol’s violent upheaval. Bernstein analyst Mark Shmulik points to “ongoing consumer obesity” across social media as well as “conversation focused on unmeasurable political events. ”
Full preview: Facebook ‘s earnings continue to thrive amid pandemics, economic slowdown and trust analysis
Tesla has already announced delivery numbers for the full year ahead of analysts ’expectations, and all eyes are on the company’s forecast for 2021. RBC Capital Markets analyst Joseph Spak, expects a delivery forecast of 825,000 to 875,000 million units for the full year, even though CEO Elon Musk said on Tesla’s last call that an analyst was “not far off” to expect 840,000 to one million delivery in 2021.
Full preview: Can Tesla’s sales growth equal a stock increase?
Here are some other things to look out for in the coming week, which will feature reports from 117 members of the DJIA average S&P 500 and 13 Dow Jones Industrial,
components.
Up in the air
BA Boeing Co.,.
the voyage remains turbulent even when the company’s 737-MAX jets were retested after being on the ground for nearly two years. Although the company began delivering these aircraft, “the delivery speed of all 450 737-MAX parks will depend on the ability of aircraft buyers to accept aircraft as well as air traffic demand,” according to a Company analyst Benchmark, Josh Sullivan.
Boeing’s Wednesday morning report provides an insight into the company’s expectations amid the pandemic, although Sullivan sees forward volatility arising from a recent equity offer and the impact of the COVID crisis. 19 on airlines.
The fourth quarter reports from U.S. airlines have been grim so far, with American Airlines Group Inc. AAL,
and Southwest Airlines Co. LUV,
offer more on Thursday morning.
Can you hear me now?
Verizon Communications Inc. VZ,
following a busy week of telecommunications earnings Tuesday morning, followed by AT&T Inc. T,
Wednesday morning and Comcast Corp. CMCSA,
Thursday morning.
For the wireless carriers, a key issue will be the impact of the recent iPhone 12 upgrade on recent products. Investors will also be looking for information on an auction that offers wireless spectrum that will be critical for 5G network deployment. Although the bids have not yet been made public, the auction is driving higher spending and both AT&T and Verizon are expected to have paid handsomely to prove their position. The question for investors is how these applications will affect the financial position of the companies.
Full preview: AT&T wins to start a special year for telecom giant
AT&T and Comcast have more media coverage than Verizon, and both of these companies have been struggling to cope with the new facts brought about by the pandemic. Both companies have made moves to push for increased streaming with their film slates due to theater closures, and the financial impact of these moves is worth a look.
Paying up
The growing situation with the pandemic is perhaps more clearly illustrated than in the results of Visa Inc. V,
Mastercard Inc. MA,
and American Express Co. AXP,
which has an impact on the global consumer consumption landscape. The companies should provide insight into overcoming travel near the end of the year, as well as the impact of recent locks.
Susquehanna analyst James Friedman recently wrote that his $ 3.97 billion revenue forecast is slightly lower than the consensus estimate, although he also asked: “is there a concern anyone around Q4 2020? ” Friedman is optimistic about mobile payments and online buying dynamics that reflect “forward-looking trends” for Mastercard, which reports Thursday morning. Visa will continue that evening, while American Express kicks off the week with their report Tuesday morning.
The chip saga continues
Micro Inc. Advanced Tools Inc. AMD,
ready to continue to benefit from INTC Intel Corp.
stumbles, which analysts expect to last for a while even as Intel prepares to lead a new, technology-based leader.
“We have low confidence that Intel can close that transistor gap quickly, so we expect it to continue to lose share in the future,” Jefferies analyst Mark Lipacis wrote after the announcement. Intel ‘s latest earnings report. AMD will show how that dynamic has played out on its side of the equation when it releases numbers on Tuesday afternoon.
Full preview: If Intel gets the action together, can AMD maintain a swollen valuation?
Other chipmakers that will report in the coming week include Texas Instruments Inc. TXN,
Tuesday afternoon; Xilinx Inc. XLNX,
which is to be acquired by AMD, on Wednesday afternoon ‘s report, when it joins chip maker Lam Research Corp. LRCX,
; and Western Digital Corp. WDC,
Thursday afternoon.
Busy week for the Dow
Among the 13 members of the Dow Jones industrial average DJIA,
ready for this week’s report is 3M Co MMM,
, Johnson & Johnson JNJ,
American Express, Verizon, and Microsoft Corp. MSFT,
they all report Tuesday.
“In the short term, we see the company’s COVID-19 vaccine reading as a major catalyst to come and we believe that efficiency in the 80% + range would suggest a clear place for the market yield, ”JP Morgan analyst Chris Schott wrote about Johnson & Johnson.
Analyst Cowen & Co. J. Derrick Wood sees difficult comparisons for Microsoft especially in its Azure and server industries, although it expects a more favorable situation going forward.
Full preview: SolarWinds hack is probably a good thing for Microsoft
Wednesday will bring results from Boeing and Apple, and Thursday McDonald’s MCD Corp.,
Dow Inc. DOW,
and Visa. Honeywell International Inc. HON,
Corp Chevron CVX,
and Caterpillar Inc. CAT,
around the week Friday morning.