Apple, Alphabet And Amazon Earnings Hat-trick

Apple, Alphabet And Amazon Earnings Hat-trick

Spreadex  | Jul 26, 2020 07:29

There is a lot on for the US this week – tensions with China, a Fed statement, Q2 GDP reading and earnings from Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), and Amazon (NASDAQ:AMZN). Oh, and covid-19.

Now that Beijing has responded to the closure of the Chinese consulate in Houston by shutting down the American consulate in Chengdu, investors have been forced to contend with the possibility of a re-escalation of tensions between the two superpowers. Especially with November’s election on the horizon – China-bashing is one of Trump’s favourite distraction tactics.

It is one of many narratives the markets will be keeping an eye on this week, beyond the regular covid-19 analysis.

Another thing for US investors to deal with is Wednesday’s Federal Reserve rate vote and press conference. The central bank isn’t expected to unveil any new stimulus on the 29th, though the phrasing of its statement may give an indication of when they are preparing to act next.

In terms of data, the most important figure arrives on Thursday, as the markets get their first taste of America’s second quarter GDP performance. Following a 5% contraction in Q1 (at the annualised rate), analysts are forecasting – brace yourselves – a 35% collapse in Q2.

Elsewhere, the durable goods orders readings are released on Monday, with CB consumer confidence on Tuesday, pending home sales on Wednesday, jobless claims on Thursday, and the core PCE price index and Chicago PMI on Friday.

If that wasn’t enough, the week’s earnings calendar is unbelievably stacked. Boeing (NYSE:BA) is up on Monday, with McDonald’s (NYSE:MCD), eBay (NASDAQ:EBAY), Starbucks (NASDAQ:SBUX) and Visa (NYSE:V) on Tuesday, and General Motors (NYSE:GM), General Electric (NYSE:GE) and Facebook (NASDAQ:FB) on Wednesday.

Then, on Thursday, the world’s biggest companies collide, as Apple, Alphabet and Amazon all reveal their latest results.

For Apple’s third quarter performance, analysts are looking for an 8.7% drop in earnings to $1.99 per share, with a 5% decline in revenue to $51.13 billion.

As for Google-parent Alphabet, it might be another battle between rising engagement and falling ad revenue. Estimates point to a huge 40.7% decline in earnings to $8.43 per share, alongside a milder 3.3% dip in revenue to $30.66 billion.

Finally, Amazon – arguably the company to benefit most from the pandemic – is expected to see a 27.5% surge in revenue to an eye-watering $80.84 billion, but with earnings per share down 74% to $1.34. That’s due to covid-19 related costs, from dealing with increased demand to keeping employees ‘safe’ (something Jeff Bezos isn’t exactly known for).

The end of July is nearly data-free for the UK, making the FTSE susceptible to the market’s wider movements. Friday morning’s Chinese manufacturing and services PMIs could impact trading in the UK, given the FTSE’s commodity base.

Luckily it is a bit more exciting on the corporate front. Greggs report on Tuesday, with a stacked Wednesday then featuring Aston Martin (LON:AML), Rio Tinto (LON:RIO), Smith & Nephew (LON:SN), Taylor Wimpey (LON:TW) and Next (LON:NXT). AstraZeneca (LON:AZN), BAE Systems (LON:BAES), Rentokil Initial (LON:RTO) and Shell (LON:RDSa) release on Thursday, with Rightmove closing the week out on Friday.

The big figures in the Eurozone come towards the end of the week, with the preliminary Q2 GDP reading out of Germany on Thursday, and the GDP numbers from France, Spain, Italy and the region as a whole on Friday.

"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."

Original Post


Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors. is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.