This week, quarterly earnings take centre stage, with Tesla Inc (NASDAQ:TSLA) reported yesterday after the closing bell. In anticipation, investors drove shares up slightly during Monday’s session.
The electric vehicle manufacturer comes out ahead of reports from Microsoft, Apple, Alphabet (NASDAQ:GOOGL), and Facebook (NASDAQ:FB). The tone was set last week when social media firms reported earnings that exceeded forecasts.
On Monday, all three indices reached fresh highs.
General Electric Company (NYSE:GE), Ford Motor Company (NYSE:F), and PayPal Holdings Inc (NASDAQ:PYPL), among others, will release earnings this week.
Investors are also anticipating the release of the Federal Reserve’s newest policy statement on Wednesday afternoon, following the end of the central bank’s two-day meeting that began on Tuesday.
Here are three factors that may have an impact on markets tomorrow:
Apple
According to experts tracked by Investing.com, Apple Inc (NASDAQ: AAPL) is anticipated to announce profits per share of $1.01 on revenue of $73.26 billion. Investors will be on the lookout for any sales or product developments.
Microsoft
According to a poll of analysts conducted by Investing.com, Microsoft Corporation (NASDAQ: MSFT) is expected to announce sales of $44.06 billion and earnings per share of $1.91.
The parent company of Google, Alphabet Inc Class C (NASDAQ: GOOG), is expected to announce an EPS of $19.24 on sales of $56.19 billion for the second quarter.
Second Quarter earnings so far
The second-quarter earnings season has been better than predicted, giving equities a boost as they climb back into record territory. According to FactSet, 88 percent of S&P 500 firms have recorded a positive EPS surprise thus far. If the final number is 88 percent, it will be the highest since FactSet began tracking this measure in 2008.
After the market plummeted last Monday on fears about the spread of the delta form of Covid and how it may stymie the economic recovery, all three major averages closed at record closing highs last week.
Bond rates fell temporarily as a result of the uncertainty, and investors rushed into tech companies. Bonds and stocks both swiftly recovered by the conclusion of the week.
Bitcoin
Also on Monday, bitcoin soared above $40,000 for the first time since mid-June, as investors reacted positively to a recent sell-off that saw the cryptocurrency fall below $30,000.
House Sales
Meanwhile, the Commerce Department said on Monday that sales of new single-family houses in the United States fell sharply in June, falling 6.6 percent to a seasonally adjusted annual pace of 676,000 units. New house sales were anticipated to rise to 795,000 units in June, according to economists surveyed by Dow Jones.
Other Markets around the World
Hong Kong stocks plummeted during the Asia trading day on Monday, with the Hang Seng index plunging as the government’s anti-tech campaign stepped up.
Strong quarterly profits and overnight advances in U.S. equities helped the Indian benchmark indexes stabilise in early trade on Tuesday.The blue-chip NSE Nifty 50 index was up 0.24 percent at 15,863.05 at 9:40 a.m., while the benchmark S&P BSE Sensex was up 0.18 percent to 52,948.98.
What to watch out?
Beginning Tuesday, investors will be following the Federal Reserve’s two-day policy meeting. On Wednesday, the Federal Open Market Committee and the Board of Governors are anticipated to release a statement on monetary policy. The Commerce Department will release second-quarter gross domestic product figures on Thursday.
