Tech giants including Apple AAPL, Amazon AMZN, and Microsoft MSFT are among the companies headlining a busy earnings week that comes as investors weigh concerns over rising interest rates, the Russian invasion of Ukraine, and surging costs.
Overall, about a third of the S&P 500 and nearly half of the Dow Jones Industrial Average are expected to provide their quarterly updates during the week starting Monday, according to FactSet.
Facebook parent Meta Platforms FB, Google owner Alphabet GOOG GOOGL and Twitter TWTR have earnings on tap next week.
Also expected to provide quarterly updates are industrial conglomerates such as General Electric GE and 3M Co MMM; food heavyweights Mondelez International MDLZ and McDonalds MCD and other big names in manufacturing and pharmaceuticals.
Covid-19-related supply-chain issues remain a problem, and the Russian invasion of Ukraine is presenting new obstacles for businesses. Investors are looking to see how companies are addressing those topics as well as maneuvering amid a macroeconomic backdrop marked by high inflation.
“Inflation is higher than we thought,” Scott Kirby, chief executive of United Airlines Holdings UAL. “We built high inflation in over a year ago, and we thought we were being conservative, but I think everyone has been surprised by how high inflation has been.”
Tech companies, after benefiting during the pandemic as restrictions and public-health concerns left many Americans homebound, now face an evolving landscape as consumer spending shifts toward in-person goods and services.
As other companies report earnings for the recently completed quarter, many are expected to point to the severe public-health restrictions in Shanghai and elsewhere in China that have disrupted supply chains, said Brian Belski, chief investment strategist at BMO Capital Markets.
So far, about 20% of S&P 500 companies have reported earnings for the recently ended quarter, according to FactSet. Earnings are on track to rise 6.6% year-over-year for the quarter, based on actual results and estimates for companies that have yet to report, FactSet said.
That would be the lowest earnings-growth rate reported by FactSet’s index since the fourth quarter of 2020. Revenue for the recent period is poised to rise 11.1% year-over-year, FactSet said. Source: Marketwatch.