Economic Events

to Know This Week!

  Economic Events to Know This Week!   Investors will witness some major events moving the market, with the escalation of the corporate earnings season and the Federal Reserve monetary policy decision. The Federal Open Market Committee (FOMC) will hold a meeting on Wednesday to discuss the monetary policy decision and the economic situation. After the meeting, Federal Reserve Governor Jerome Powell will hold a press conference. Big Tech earnings Most mega-cap tech companies will report their first quarter earnings results this week. Companies that accounted for just over a quarter of the S&P 500's market value began reporting first quarter results as of Friday morning, according to an analysis by Credit Suisse's Jonathan Golub. 83 % of the companies that reported the results reported gains above the estimates. However, the backlash to Netflix's (NFLX) report last week highlighted the dangers of high expectations. Netflix's disappointing first quarter net subscriber additions and current quarter guidance have highlighted the challenge for tech companies. Stating that Amazon is the favorite FANG name for earnings in the first quarter of this year, JPMorgan Chase analyst Doug Anmuth said in the investor's note: “In terms of positioning, Amazon has less than Google and the challenging Netflix results may have consolidated, we believe it is more in control than last quarters given comparisons. " According to Bloomberg consensus data; Amazon is expected to post first quarter revenue growing 39 % compared to the same quarter of 2020.

Economic Events to Know This Week!

Ad-focused companies Facebook (FB) and Alphabet (GOOGL), Google's parent company, also report against high estimates, given that analysts are pricing as a rebound in ad revenue during the economic recovery. Also, the smaller social media company Snap (SNAP) has highlighted the enduring power of online media use on some platforms, even as parts of the economy are beginning to open up. Facebook's expected revenue growth of 34 % in the first quarter will be the fastest growth recorded since the beginning of 2018. Alphabet's revenue growth of 26 % is expected to be the fastest growth since early 2013. "We think GOOG is facing a higher bar this quarter than in the last few quarters, as there are prospects for a strong search and improvement in brand advertising," said Daniel Salmon, BMO Capital Markets analyst. Finally, Apple (AAPL) will report its financial second quarter results after a record-breaking holiday quarter at the end of last year, with the iPhone 12 upgrade cycle aiding the results. Some experts think the increase from these new devices will likely extend until the start of the new year, although the ongoing chip shortage will hurt the results later in the year. Economic Events to Know This Week!    

Source: finance.yahoo.com

 

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