Get ready for the big show! The busiest week of the Q4 earnings season is about to kick off, with more than 100 companies representing nearly a third of the S&P 500's market value set to report results. Heavyweights like Caterpillar (
CAT), Exxon (
XOM), GM (
GM), McDonald's (
MCD) and Pfizer (
PFE) are on tap this morning, but things will quickly turn to tech after the bell. Snap (
SNAP) is set to provide an early look into what is cooking in the world of online advertising, user growth and consumer spending, after Microsoft (
MSFT)
issued conservative guidance last week and revealed that new business growth slowed in December.
Next up: Meta Platforms (
META) will disclose its quarterly results tomorrow, while Alphabet (
GOOG,
GOOGL), Amazon (
AMZN) and Apple (
AAPL) are gearing up for Thursday. According to FactSet, overall earnings are projected to decline for the season, with technology and media companies among the top losers. Massive layoffs have already hit the industry as a consumer spending slowdown and an aggressive Fed weakens growth-oriented sectors of the economy.
"In the last 90 days, Wall Street analysts have overwhelmingly lowered their earnings estimates ahead of results this week; 42, 46, and 33 downward revisions for Meta, Alphabet, and Apple, respectively,"
writes Steve Cress, Head of Quantitative Strategies at Seeking Alpha. He gives a full Quant overview ahead of the earnings, but
only one name stands out as a consensus Strong Buy before the big show. The three mega-cap tech stocks' results could influence the market for months to come, but also check out other Strong Buy technology recommendations that can be found on the
SA Top Technology Stocks screener.
Other catalysts: Earnings season is not the only thing on investors' minds. The FOMC today will kick off its first meeting of 2023, which should provide more clarity on Fed policy direction for the rest of the year. This week's
Wall Street Breakfast poll will remain open until the FOMC press conference tomorrow, so make sure to vote and see what the Seeking Alpha community thinks about
where rates might be headed in 2023.
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