skip to Main Content
enquiries@thearmchairtrader.com

Sign up for our Free Daily Digest newsletter: Actionable insight every morning, designed for the self-directed investor. Find out more

Will the US earnings season continue to distract investors from America’s disastrous covid-19 headlines?

US: Earnings season

Broadly, the US earnings season – especially updates from the likes of JP Morgan and Goldman Sachs – has been a welcome side show for the Dow Jones et al.

It has allowed the markets to sporadically turn away from the nightmarish covid-19 numbers coming out of the United States, including the fact that California has effectively had to re-enter lockdown to try and keep a lid on its most recent spike.

And with the daily number of new cases continuing to come in between 60,000 and 70,000, there is not a lot of let up to be had in the immediate future.

Luckily for distraction-seeking investors, there are plenty more big names reporting this week. IBM are up on Monday, while Coca Cola may struggle to match PepsiCo’s snacks-led outperformance on Tuesday.

Wednesday is the real hot date, with both Tesla and Microsoft making an appearance. Analysts are expecting Elon Musk’s company to post a quarterly loss of 63 cents per share – bafflingly that’d be a 43.8% improvement year-on-year – alongside a 21.6% drop in revenue to $4.98 billion.

As for Bill Gates and the gang, Microsoft – potentially benefiting from a lockdown surge in tech purchases, be it software or hardware – is forecast to post an 8.5% increase in revenue to $36.59 billion, with a 2.2% jump in earnings to $1.40 per share.

Rounding out the week, Twitter – which could see an uptick in user and engagement metrics – and Intel update on Thursday, with Verizon releasing its latest figures on Friday.

As for the economic calendar, that’s not quite as packed. Existing home sales arrive on Wednesday, with the usual weekly jobless claims figure on Thursday.

Friday has the most relevant releases in the form of July’s flash manufacturing and services PMIs. In June both numbers neared, but failed to reach, the crucial 50.0 mark, so investors will be hoping the PMIs can cross that level this week.

UK: Market sentiment 

Set to ride the waves of market sentiment once again, the UK doesn’t have too much on its plate this week – at least not until Friday.

The public sector net borrowing reading is released on Tuesday, with the CBI industrial order expectations figure on Thursday. Then, at the end of the week, there is the flash manufacturing and services PMIs – which hit 50.1 and 47.1 respectively in June – alongside the latest retail sales reveal.

Eurozone

Echoing the US and UK, the Euzorone sees its current account figures on Monday, consumer confidence on Thursday, and the flash manufacturing and services PMIs for Germany, France and the region as a whole on Friday.

This article is brought to you in association with Spreadex. All opinions expressed in this article are from the author and do not necessarily represent the opinions of The Armchair Trader. You can find out more about Spreadex products and services here, or find more articles from Connor Campbell here.

Share this article

Sign up to our Daily Digest newsletter and receive our latest insight every morning

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

Comments

This Post Has 0 Comments

Leave a Reply

Your email address will not be published.

Back To Top