Tech earnings, CPI: Busy week ahead for the markets

 

The markets were certainly volatile this week because of geopolitical concerns. Fed Chief Janet Yellen told lawmakers that the FOMC plans to press on with record easing. And the earnings parade continued. Bloomberg data shows about 77% of the S&P 500 companies that have posted results so far this season have beat analysts’ profit projections, and 70% topped sales estimates.

Many of the biggest tech names will turn in quarterly results next week. Among the companies on the earnings calendar this week are Apple (AAPL), Facebook (FB), Amazon (AMZN) and Netflix (NFLX).

Behemoth Apple will probably report a gain in fiscal-third quarter profit Tuesday. The iPhone accounts for about half the company’s revenue. Yahoo Finance’s Shibani Joshi says investors will especially want to hear about Apple’s September guidance.

“Everybody anticipates that’s when the iPhone 6 will come out,” she says. “If it comes out in September, it should give [Apple] a bump in revenues and profits.” Users have been clamoring for a bigger iPhone screen, which may lead to record sales.

Netflix, Facebook

On Monday, we get Netflix earnings. The stock is trading around $440 a share. Yahoo Finance’s Jeff Macke Macke is bullish on the company, saying its studio play paid off.

On Wednesday after the bell, Facebook releases second-quarter earnings. The world’s biggest social network will probably report a gain after increasing ad revenue on mobile devices. Investors will also be waiting to hear from the company’s new CFO.

CPI

A key piece of data on the Fed’s radar is inflation. The Labor Department releases the Consumer Price Index on Tuesday 8:30am ET. Prices probably increased in June as Americans paid more for food and fuel, keeping the number close to the Federal Reserve’s 2% target. Yahoo Finance senior columnist Michael Santoli says he doesn’t expect CPI to be a huge market mover for stocks or bonds. What he’s more interested in is the wage growth part of the story.

“If wages are only growing 2% and if inflation in general is 2% that tells you we don’t have enough salary existing in this country to actually fuel a long lasting bout of inflation," Santoli says.

CPI should set some direction for investors on the Fed’s next move.

Milanee Kapadia is a freelance contributor to Yahoo Finance. Follow her on Twitter @MilaneeKapadia.

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