The week ahead will be one to watch as investors focus on earnings from some of the biggest names in the market, as well as a speech from Federal Reserve Chairman Jerome Powell. U.S. stock futures were lower to start trading for the new week as investors awaited more earnings and Powell’s important speech before the Economic Club of Washington on Tuesday.[0] Dow Jones Industrial Average futures lost 72 points, S&P 500 futures were lower by 0.3%, and Nasdaq-100 futures fell by 0.4%.[1]
It appears that investors are choosing to overlook the rate hikes and weak earnings and instead pay attention to the recent data indicating that inflation is decreasing, in anticipation that the economy will have a gentle descent and profits will be renewed in the later part of the year.[1] Last week, the S&P 500 managed to reach a 5-month peak over 4,100, forming a bullish “Golden Cross” pattern in the process.[1] The Nasdaq has not seen a winning streak of this length since November 2021, being the first in five weeks.[1]
Among the stocks to watch this week are General Motors (GM) which is expected to post earnings at $1.69 per share on revenue of $40.65 billion before the opening bell.[2] Sanmina Corporation (SANM) posted better-than-expected earnings for its first quarter and issued strong FY23 guidance.[3] NXP Semiconductors (NXPI) reported upbeat results for its fourth quarter, but issued weak sales forecast for the first quarter.[3]
Pfizer (PFE) beat estimates on both top and bottom lines for its Q4 report this morning, with earnings $1.14 per share beating consensus by +10.68%, and sales of $24.29 billion in the quarter eking out a top-line beat of +0.36%.[4] Despite this, the stock continues to decrease during today’s pre-market trading and has dropped by 15% this year so far.[4]
McDonald’s Corporation (MCD) is expected to report earnings per share of $2.45 on revenue of $5.7B.[3]
ExxonMobil (XOM) beat Q4 estimates this morning on record-high net gains of $56 billion in the quarter.[5] The earnings per share of $3.40 exceeded the Zacks consensus estimate by 8 cents.[4] Revenue was slightly lower than expected, at $95.43 billion, which is a decrease of -5.57%.[4]
0. “Stock futures slide to start week with more earnings and a Powell speech ahead” CNBC, 6 Feb. 2023, https://www.cnbc.com/2023/02/05/stock-futures-slide-to-start-week-with-more-earnings-and-a-powell-speech-ahead.html
1. “Stock Futures Slide to Start Week With More Earnings and a Powell Speech Ahead” NBC4 Washington, 6 Feb. 2023, https://www.nbcwashington.com/news/local/stock-futures-slide-to-start-week-with-more-earnings-and-a-powell-speech-ahead-2/3271900/
2. “Earnings Previews: Alphabet, Amazon, Apple, Qualcomm” 24/7 Wall St., 1 Feb. 2023, https://247wallst.com/technology-3/2023/02/01/earnings-previews-alphabet-amazon-apple-qualcomm/
3. “General Motors, McDonald’s And 3 Stocks To Watch Heading Into Tuesday By Benzinga” Investing.com UK, 31 Jan. 2023, https://uk.investing.com/news/stock-market-news/general-motors-mcdonalds-and-3-stocks-to-watch-heading-into-tuesday-2898438
4. “Best January in 4 Years Heads for Its Close; XOM, CAT, GM & More Report” Zacks Investment Research, 31 Jan. 2023, https://www.zacks.com/stock/news/2047090/best-january-in-4-years-heads-for-its-close-xom-cat-gm-more-report
5. “6 stocks to watch on Tuesday: General Motors, Pfizer, Whirlpool and more (NYSE:GM)” Seeking Alpha, 31 Jan. 2023, https://seekingalpha.com/news/3929819-6-stocks-to-watch-on-tuesday-general-motors-pfizer-whirlpool-and-more