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Big Tech Earnings & Economic Numbers: 3 Ways to Survive the Week Ahead
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Big Tech Earnings Loom
Any way you spin it, this week looks to be a busy week on Wall Street. Equities markets are heading into the heart of earnings season, and big tech names, which have recovered in 2023 and are buoying the general market, are set to report earnings. After the close on Tuesday, Microsoft ((MSFT - Free Report) ) and Alphabet ((GOOGL - Free Report) ) are expected to report earnings – the two companies account for nearly $3.5 trillion in market cap. It doesn’t end there. Later in the week, social media giant Meta Platforms ((META - Free Report) ) will report Wednesday, and e-commerce king Amazon ((AMZN - Free Report) ) will report Thursday. Though Amazon’s stock has lagged recently, the stock closed above its 200-day moving average for the first time in more than two months and its price-to-sales ratio is at historic lows. Expect big tech earnings to be a key driver this week.
Image Source: Zacks Investment Research
Economic Calendar
On the economic front, the calendar is as follows:
Today: Nothing.
Tuesday: S&P Case-Shiller home price index (9 am EST), new home sales (10 am EST), & consumer confidence (10 am EST).
Wednesday: Durable-goods orders (8:30 am EST)
Thursday: GDP (8:30 am), Jobless claims (8:30 am EST), pending home sales (10:00 am EST).
Friday: PCE and Core PCE index (8:30 am EST)
There will be no Fed speakers this week as the Federal Reserve remains in a “quiet period”. Beyond the economic calendar, below are 3 things to remember this week.
3 Things to Remember
Know when the key market-moving companies and the companies in your portfolio are reporting earnings: The last thing we want to do as investors is get caught flat-footed. On Zacks.com, you can check earnings dates.
Image Source: Zacks Investment Research
Check the Zacks ESP: The Zacks Earnings ESP (Expected Surprise Prediction)is the closest thing you can get to having earnings “crystal ball”. The ESP tracks recent earnings revisions. When a stock has a positive ESP score and is ranked a Zacks #3 (Hold) or better, the underlying company tends to beat on earnings 70% of the time and outperforms the market one year forward on average.
Image Source: Zacks Investment Research
These days, most brokers allow you to also check the magnitude to which a company may move on earnings based on the options market. Some implied moves for earnings this week include:
Be Prepared for Anything: At this juncture in 2023, investors should have a plan for the market moving in either direction. For now, the general market is in a clear uptrend, with the Nasdaq 100 ETF (QQQ) higher by 20% year-to-date.
Image Source: Zacks Investment Research
Nevertheless, such a strong move into earnings for many companies may mean several “sell the news” type events may be on the horizon. Also, sentiment is heating up – the CNN Fear Greed index is at its “greediest” levels since the beginning of February when the general market was starting a multi-week pullback.
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Big Tech Earnings & Economic Numbers: 3 Ways to Survive the Week Ahead
Big Tech Earnings Loom
Any way you spin it, this week looks to be a busy week on Wall Street. Equities markets are heading into the heart of earnings season, and big tech names, which have recovered in 2023 and are buoying the general market, are set to report earnings. After the close on Tuesday, Microsoft ((MSFT - Free Report) ) and Alphabet ((GOOGL - Free Report) ) are expected to report earnings – the two companies account for nearly $3.5 trillion in market cap. It doesn’t end there. Later in the week, social media giant Meta Platforms ((META - Free Report) ) will report Wednesday, and e-commerce king Amazon ((AMZN - Free Report) ) will report Thursday. Though Amazon’s stock has lagged recently, the stock closed above its 200-day moving average for the first time in more than two months and its price-to-sales ratio is at historic lows. Expect big tech earnings to be a key driver this week.
Image Source: Zacks Investment Research
Economic Calendar
On the economic front, the calendar is as follows:
Today: Nothing.
Tuesday: S&P Case-Shiller home price index (9 am EST), new home sales (10 am EST), & consumer confidence (10 am EST).
Wednesday: Durable-goods orders (8:30 am EST)
Thursday: GDP (8:30 am), Jobless claims (8:30 am EST), pending home sales (10:00 am EST).
Friday: PCE and Core PCE index (8:30 am EST)
There will be no Fed speakers this week as the Federal Reserve remains in a “quiet period”. Beyond the economic calendar, below are 3 things to remember this week.
3 Things to Remember
Know when the key market-moving companies and the companies in your portfolio are reporting earnings: The last thing we want to do as investors is get caught flat-footed. On Zacks.com, you can check earnings dates.
Image Source: Zacks Investment Research
Check the Zacks ESP: The Zacks Earnings ESP (Expected Surprise Prediction) is the closest thing you can get to having earnings “crystal ball”. The ESP tracks recent earnings revisions. When a stock has a positive ESP score and is ranked a Zacks #3 (Hold) or better, the underlying company tends to beat on earnings 70% of the time and outperforms the market one year forward on average.
Image Source: Zacks Investment Research
These days, most brokers allow you to also check the magnitude to which a company may move on earnings based on the options market. Some implied moves for earnings this week include:
Microsoft (MSFT - Free Report) :4.1%
Alphabet (GOOGL - Free Report) : 5.4%
Meta (META - Free Report) : 9.1%
Amazon (AMZN - Free Report) :7.1%
Snap ((SNAP - Free Report) ): 15.8%
Pinterest ((PINS - Free Report) ): 10%
Cloudflare ((NET - Free Report) ):11.2%
First Solar ((FSLR - Free Report) ): 7.6%
Gilead Sciences ((GILD - Free Report) ): 3.5%
Dexcom ((DXCM - Free Report) ): 9.7%
Be Prepared for Anything: At this juncture in 2023, investors should have a plan for the market moving in either direction. For now, the general market is in a clear uptrend, with the Nasdaq 100 ETF (QQQ) higher by 20% year-to-date.
Image Source: Zacks Investment Research
Nevertheless, such a strong move into earnings for many companies may mean several “sell the news” type events may be on the horizon. Also, sentiment is heating up – the CNN Fear Greed index is at its “greediest” levels since the beginning of February when the general market was starting a multi-week pullback.