The economic data that was postponed due to the partial government shutdown has yet to be released, and most of the backlog is scheduled to be released within the coming weeks. But no official dates have been set.
Meanwhile, earnings season is more than halfway through with 60% of the S&P 500 stocks having already reported earnings, and the names bringing good news are being rewarded by investors.
“Earnings triple plays this season (companies that beat EPS, beat revenues, and raise guidance) have averaged a huge one-day gain of 9.15% on their earnings reaction days. Throughout history triple plays have averaged a gain of 5.32%,” according to Bespoke Investment Group.
This week, investors can expect several earnings reports from the remaining tech heavyweights. Alphabet (GOOGL) reports Monday after the bell, Snap (SNAP) will also report after the bell on Tuesday and Twitter (TWTR) reports before the bell on Thursday.
Bank of America explained in a note to clients on Tuesday that while Alphabet has been underperforming its other tech rivals this year, the bank remains optimistic longterm. “Direct response ad checks are generally positive in the US, but we think some [international] macro pressure is possible, the bank said. “Overall, we like the set up into the print given recent margin comps, regulatory and Amazon concerns and recent stock performance.”
Mark Mahaney of RBC believes that Google’s hardware business will continue to impress. “Google has over the past few years made hardware development and innovation a bigger strategic and engineering focus for the company, via both acquisitions (Nest, HTC) and organic efforts. The result has been a relatively impressive slate of products that have gained critical success and are starting to gain material commercial traction. In FY18, we estimate that Google’s Hardware segment will generate a combined $8.8B in Revenue (6% of Gross Revenue) and $3.0B in Gross Profits (4% of Gross Profits),” Mahaney wrote in a note on Friday.
Analysts surveyed by Bloomberg expect Alphabet to report earnings of $13.04 per share on $31.32 billion in revenue.
Meanwhile, Snap has been attracting a lot of attention for yet another recent C-suite shake up. The lack of stable leadership has been raising concerns for investors and analysts. Snap’s Chief Accounting Officer Laura Sweet has been serving as interim CFO until a more permanent option is found.
“We downgraded shares of SNAP to Sector Perform in the wake of mixed pre- release results, but more importantly, in the wake of a surprise resignation by the CFO. This increased our concern over management execution,” Mahaney said.
Snap is expected to report an earnings loss of 8 cents per share on $376.66 million in revenue.
Additionally, President Trump is scheduled to deliver the State of the Union address Tuesday evening.
Wednesday: Eli Lilly (LLY), General Motors (GM), GlaxoSmithKline (GSK), Humana (HUM), New York Times (NYT), Regeneron (REGN), Spotify (SPOT), Take-Two Interactive (TTWO) before market open; Chipotle (CMG), FireEye (FEYE), GoPro (GPRO), Match Group (MTCH), NXP Semiconductors (NXPI), O’Reilly Automotive (ORLY), Sonos (SONO) after market close
Thursday: Dunkin (DNKN), Fiat Chrysler (FCAU), GrubHub (GRUB), Kellogg (K), Marathon Petroleum (MPC), Philip Morris (PM), S&P Global (SPGI), Sanofi (SNY), Tapestry (TPR), Twitter, Yum Brands (YUM) before market open; ANGI Homeservices (ANGI), Expedia (EXPE), IAC/InterActiveCorp (IAC), Lions Gate (LGF-A), Mattel (MAT) after market close
Monday: Factory Orders, November (+0.3% expected, -2.1% prior), Durable Goods Orders, November (+1.7% expected, +0.8% prior), Durable Goods excluding Transportation, November (+0.2% expected, -0.3% prior), Capital Goods Orders Nondefense excluding Air, November (+0.1% expected, -0.6% prior)
Tuesday: Markit US Services PMI, January (54.2 expected, 54.2 prior), Markit US Composite PMI, January (54.5 prior), ISM Non-Manufacturing Index, January (57.0 expected, 58.0 prior revised)
Wednesday: MBA Mortgage Applications, week ending February 1 (-3.0% prior), Trade Balance, November (-$54.0B expected, -$55.5B prior), Nonfarm Productivity, 4Q (+1.7% expected, +2.3% prior)
Thursday: Initial Jobless Claims, week ending February 2 (220,000 expected, 253,000 prior), Continuing Claims, week ending January 26 (1.782 million prior), Bloomberg Consumer Confidence, week ending February 3 (57.4 prior)
Delayed economic data
Sometime between 2/4-2/8: Personal Income, December (+0.5% expected, +0.2% prior), Personal Spending, December (+0.3% expected, +0.4% prior), GDP Annualized quarter-on-quarter, 4Q (+2.6% expected, +3.4% prior), Personal Consumption, 4Q (+3.8% expected, +3.5% prior), GDP Price Index, 4Q (+1.7% expected, +1.8% prior), Core PCE quarter-on-quarter, 4Q (+1.6% expected, +1.6% prior),
Sometime between 2/5-2/15: Building Permits, December (1.290 million expected, 1.322 million prior revised), Retail Sales Advance month-on-month, December (+0.1% expected, +0.2% prior), Retail Sales excluding Auto month-on-month, December (+0.1% expected, +0.2% prior), Retail Sales excluding Auto & Gas, December (+0.4% expected, +0.5% prior), Housing Starts, December (1.253 million expected, 1.256 million prior), Wholesale Inventories month-on-month, December (+0.3% prior), New Home Sales, December (575,000 expected, 657,000 prior), Durable Goods Orders, December (+1.7% expected), Durables excluding Transportation, December (+0.2% expected), Capital Goods Orders Nondefense excluding Air, December (+0.1% expected)
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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