Tuesday's Market Minute: Tech Heavyweight Earnings On Deck: GOOGL, MSFT, META, AMZN, AAPL

U.S. equities wobbled to start arguably the busiest week of earnings of the quarter. Monday kicked off the final week of trading for the month of July, and despite initial overall weakness (particularly in the Nasdaq), the largest indices are pacing for their best month of the year. In the month of July so far, the best performers through Monday’s close are Qualcomm QCOM, Bath & Body Works BBWI, NXP Semiconductors NXPI, KLA Corporation KLAC, and Netflix NFLX – while the index’s worst performers so far are Newmont NEM, Baker Hughes (BKR), Verizon (VZ), AT&T (T), and ServiceNow NOW.

Just five companies control nearly a quarter of the S&P 500’s market cap, and they are all expected to report earnings this week. The five companies – Apple AAPL, Amazon AMZN, Microsoft MSFT, Alphabet GOOGL, and Meta Platforms META – collectively are worth about $7.5B, even given the group’s broad softness so far this year. Altogether, the companies produced profits of roughly $320B last year, with sales totaling over $1.4T. Based on these figures alone, this ranks the five companies as 13th in GDP as a nation, ahead of Australia and just behind Brazil.

In the coming quarter, all five companies’ managements hinted at looming recessionary fears, signaling to either cut costs or plans to do so soon. Apple reportedly plans to trim costs next year, while Microsoft announced it was closing open positions and making minor layoffs. Meta CEO Mark Zuckerberg said we are facing one of the worst downturns seen in recent history, and Alphabet just recently announced that while it strives to increase its total headcount by the end of the year, the company will be restructuring with layoffs. This afternoon, Alphabet will kick off the tech heavyweight reports. According to Street consensus, earnings are expected to total roughly $1.28/share on revenue of $70.8B.

Microsoft will also report today after the close, with revenue expected at $52.4B on earnings of $2.29. Much focus will be centered on its cloud computing business, which has been a main driver of its 255% stock price growth over the last half of a decade.

Other major names after the close today include Chipotle CMG, Mondelez MDLZ, Skechers SKX, Texas Instruments TXN, Visa V, and Boyd Gaming (BYD). Notable names reporting on Wednesday are Meta Platforms META, Boeing BA, Boston Scientific BSX, Bristol-Myers Squibb BMY, Kraft Heinz KHC, Spotify SPOT, Ford F, Lam Research LRCX, Qualcomm QCOM, and Etsy ETSY. Thursday will be yet another jam-packed day of corporate earnings – with big tech names Amazon AMZN, Apple AAPL, Intel INTC, and Roku ROKU also scheduled to report.
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