Homepage / Investment / The market will be drowning in earnings news from FANG and others, and that could be a good thing
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Investment

The market will be drowning in earnings news from FANG and others, and that could be a good thing

The Federal Reserve’s midweek meeting — coupled with a marquee list of corporate earnings reports — could make the week ahead among the most important of the summer.

There are also several key economic reports, with the biggest being second-quarter GDP Friday, now expected at 2.5 percent.

The Fed is not expected to take any action at its two-day meeting, but it could provide more details Wednesday as to when it might start to scale back its $4.5 trillion balance sheet and what it currently thinks about a now fourth month of weaker inflation data.

For the stock market, however, it could be the make-or-break week for earnings season, with more than a third of the S&P 500 companies and 13 Dow stocks reporting. FANG namesFacebook, Amazon and Alphabet — are among about 180 S&P companies reporting, as are Exxon Mobil, Caterpillar, United Technologies, McDonald’s, and Boeing.

Stocks were mostly higher for the week, but the Dow lagged, with a small decline. The Dow, S&P 500, Nasdaq and Russell 2000 hit new all-time highs in the past week, but finished Friday slightly below those levels.

The earnings season is expected to be strong but not as strong as last quarter’s 15 percent growth. So far, 74 percent of S&P 500 companies have beaten earnings estimates, and the rate of earnings growth, including those that have reported, is now expected at about 9.6 percent, according to Thomson Reuters.

“It plays in with other favorable facts,” said Paul Christopher, head global market strategist at Wells Fargo Investment Institute. “With the Fed being perceived as dovish, and the economy expected to do better in the second half of the year, we’re still expecting 6 percent earnings growth. It’s going to be good but not spectacular earnings.”

As markets await the Fed’s announcement, investors will also be watching the dollar, which was down about 1.7 percent against the euro in the past week and now down more than 10 percent for the year. Expectations of a more hawkish European Central Bank contrast with market views that the Fed is more dovish than it had been and is less likely to follow through with another interest-rate hike this year. There are only about 40 percent odds of a December rate hike, according to fed funds futures.

Fed Chair Janet Yellen helped shift market expectations with her recent comments on inflation, so that will be the topic the market could react to most in the Fed’s 2 p.m. statement Wednesday.

“The Fed will basically put more nuance around what they’re going to do on the balance-sheet front,” said Krishna Memani, CIO at OppenheimerFunds.

Memani said the Fed could also address the fact that inflation has come in lower. Yellen and other Fed officials had been saying the drop in inflation was transitory, but in her recent remarks before Congress, she expressed some trepidation, which the market took as dovish. If the Fed formalizes more of that concern in its statement, “the bond market is going to rally and the stock market is going to rally,” he said.

The Fed could just simply state that inflation has declined further, and that would be the equivalent of it upgrading its concerns, said James Caron, fixed income portfolio manager at Morgan Stanley Investment Management.

“The onus right now is on the market data to really show there is a pickup,” Caron said. “For the second quarter, we knew mathematically that inflation was going to hit a soft spot from the year-over-year effects, but there was also an expectation that we would pull out of that soft spot in the third quarter and fourth quarter,” he said. Caron said the Fed could continue to discuss growth as rising moderately and may change the language on employment to reflect the strong jobs report in June.

Caron said the Fed could continue to discuss growth as rising moderately and may change the language on employment to reflect the strong jobs report in June.

“If their dual mandate is full employment and price stability, they’re getting an ‘A’ on one and not doing so well on the other,” he said.

Caron also expects the Fed to comment on its balance sheet. The Fed has long been done with its quantitative easing program, but one vestige of the program has been that it replaces the Treasurys and mortgages on its balance sheet as they roll down. It plans to slowly reduce the amount of replacement securities it is buying, thereby chipping away at the size of the balance sheet.

“Do they get a step closer to saying we’re on track to reduce the balance sheet? Yes, I think that also gets communicated. That’s probably a September event, and they announce it may start in the fourth quarter,” he said.

Focus will also be on Washington in the week ahead, where the Senate is expected to continue working to repeal Obamacare. Expectations are high on Wall Street that Congress will eventually turn to tax reform this year and have something to vote into law early next year. Many believe that Congress will be motivated to pass a tax cut bill by early 2018 to help Republicans keep their House majority in the 2018 midterm elections.

“I still think they’re going to do something, and they have lots of time to do it. The more they fail on other things, the more incentive they have to compromise on this,” Christopher said.

The investigation into the Trump campaign’s ties to Russia will continue to get attention. President Donald Trump’s son-in-law, Jared Kushner, is expected to be interviewed by a congressional committee in a closed-door session on Monday.

Monday

Earnings: Alphabet, Anadarko Petroleum, Celanese, Halliburton, Illinois Tool Works, Luxottica, Stanley Black and Decker, Ryanair, Arconic, Manpower Group, VF Corp

9:45 a.m. Manufacturing PMI

10:00 a.m. Existing home sales

Tuesday

FOMC meeting begins

Earnings: 3M, Caterpillar, McDonald’s, United Technologies, General Motors, Eli Lilly, Biogen, Amgen, AT&T, Chipotle, U.S. Steel, Express Scripts, Kimberly-Clark, Freeport-McMoran, Seagate Technology, JetBlue, TransUnion, T. Rowe Price, Akamai, Texas Instruments

8:30 a.m. Philadelphia Fed nonmanufacturing

9:00 a.m. S&P/Case-Shiller home prices

9:00 a.m. FHFA home prices

10:00 a.m. Consumer confidence

10:00 am. Richmond Fed survey

Wednesday

Earnings: Facebook, Boeing, Coca-Cola, Gilead Sciences, PayPal, Samsung, Discover Financial, Northrop Grumman, Nasdaq OMX, Hershey, Corning, DR Horton, Daimler, Ford, LVMH, Anthem, General Dynamics, Norfolk Southern, State Street, Six Flags, F5Networks, Vertex Pharma, Whole Foods

9:45 a.m. Services PMI

10:00 a.m. New home sales

2:00 p.m. FOMC statement

Thursday

Earnings: Amazon, Intel, Starbucks, MasterCard, Bristol-Myers Squibb, Celgene, Fiat Chrysler, Verizon, Comcast, Twitter, Altria, A-B InBev, AstraZeneca, Royal Dutch Shell, UPS, Total, Raytheon, Dr. Pepper Snapple, Southwest Air, Dunkin Brands, Deutsche Bank, Diageo, Nokia, Mattel, Boston Beer, Expedia, Brunswick, Baidu

8:30 a.m. Initial claims

8:30 a.m. Durable goods

8:30 a.m. Advanced economic indicators

10:00 a.m. Housing vacancies

11:00 a.m. Kansas City Fed survey

Friday

Earnings: Exxon Mobil, Chevron, Merck, American Airlines, AbbVie, Barclays, UBS, Baker Hughes, BT Group, Cabot Oil and Gas, BNP Paribas, TransCanada, Credit Suisse, Weyerhaeuser, Nomura, CMS Energy

8:30 a.m. Real GDP Q2

9:30 a.m. Employment cost index

10:00 a.m. Consumer sentiment

Source: Investment Cnbc
The market will be drowning in earnings news from FANG and others, and that could be a good thing

Comments are closed.