Can Magnificent 7 Help Script Market Turnaround? Earnings Pick Up Pace With Microsoft, Meta, Alphabet And Tesla Expected This Week

Author: Shanthi Rexaline | April 21, 2024 05:45pm

As the market runs into rough weather, the importance of the upcoming week’s earnings cannot be emphasized enough. A lot is riding on the earnings reports of companies like Tesla, Inc. (NASDAQ:TSLA), Meta Platforms, Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT) and Alphabet, Inc. (NASDAQ:GOOGL) (GOOG).

The Season So Far: The percentage of S&P 500 companies that have reported positive earning surprises and the magnitude of earnings surprises are at or above their 10-year averages, said FactSet in its report released Friday. That said, substantial downward revisions to earnings per share (EPS) estimates of two healthcare companies have led to a decline in earnings growth over the past two weeks.

The combined earnings per share growth rate of S&P 500 companies, considering both the already reported actual results and the estimates for those yet to report, is at 0.5%, according to FactSet. The metric, however, fell from the 0.9% estimated previous week and the 3.4% estimated at the end of the first quarter. Earnings growth for the quarter may extend the positive growth streak to three quarters.

So far, 14% of the S&P 500 companies have reported March quarter results.

See Also: Best Tech Stocks To Buy Right Now

Look Ahead: The upcoming week will likely feature earnings releases from 158 S&P 500 companies, including 11 Dow 30 components. With the bank earnings tapering off, the spotlight shifts to tech companies, as they begin to roll out their quarterly scorecard this week.

Apart from some big techs, which are part of the group called the “Magnificent Seven,” homebuilders, defense contractors, airlines and transportation companies are also due to release their quarterly reports.

All eyes are focused on Tesla as analysts expect a downbeat report from the company. Analysts see the scope of a further contraction in margin and potentially a double miss yet again in the first quarter.

AI stalwarts Microsoft, Alphabet and Meta are widely expected to report strong results. Following the recent tech-led sell-off, Wedbush analyst Daniel Ives said, “We believe 1Q earnings will be a major positive catalyst for the tech sector and expect tech stocks to be up another 15% for the year adding to the strong start to 2024.”

The earnings schedule of key names are as follows:

Monday

• Before the bell: Albertsons Companies, Inc. (NYSE:ACI), Verizon Communications Inc. (NYSE:VZ), Zions Bancorporation, National Association (NASDAQ:ZION)
• After the close: Ameriprise Financial, Inc. (NYSE:AMP), Nucor Corporation (NYSE:NUE) Cleveland-Cliffs Inc. (NYSE:CLF), Packaging Corporation of America (NYSE:PKG) and SAP SE (NYSE:SAP),
  Quest Diagnostics Incorporated (NYSE:DGX)

Tuesday

• Before the bell: D.R. Horton, Inc. (NYSE:DHI), Fiserv, Inc. (NYSE:FI), General Electric Co. (NYSE:GE), General Motors Corp. (NYSE:GM), JetBlue Airways Corporation (NASDAQ:JBLU), Kimberly-Clark Corporation (NYSE:KMB), Novartis AG (NYSE:NVS), PepsiCo. (NYSE:PEP), PulteGroup, Inc. (NYSE:PHM), Spotify Technology S.A. (NYSE:SPOT), United Parcel Service, Inc. (NYSE:UPS) and Xerox Holdings Corporation (NYSE:XRX), Halliburton Company (NYSE:HAL) and Lockheed Martin Corporation (NYSE:LMT)
• After the close: Visa, Inc. (NYSE:V), Texas Instruments, Inc. (NASDAQ:TXN), Tesla, Steel Dynamics, Inc. (NASDAQ:STLD), Seagate Technology Holdings plc (NASDAQ:STX), Mattel, Inc. (NASDAQ:MAT), Chubb Limited (NYSE:CB), Canadian National Railway Company (NYSE:CNI) and Baker Hughes Company (NASDAQ:BKR)

Wednesday

• Before the bell: Thermo Fisher Scientific Inc. (NYSE:TMO), Old Dominion Freight Line, Inc. (NASDAQ:ODFL), Norfolk Southern Corporation (NYSE:NSC), Humana Inc. (NYSE:HUM), Hasbro, Inc. (NASDA: HAS), General Dynamics Corporation (NYSE:GD), Boston Scientific Corporation (NYSE:BSX), Biogen, Inc. (NASDAQ:BIIB) and AT&T Corp. (NYSE:T)
• After the close: Whirlpool Corporation (NYSE:WHR), Western Union Company (NYSE:WU), ServiceNow, Inc. (NYSE:NOW), QuantumScape Corporation (NYSE:QS), O’Reilly Automotive, Inc. (NASDAQ:ORLY), Meta Platforms, Meritage Homes Corporation (NYSE:MTH), Lam Research Corp. (NASDAQ:LRCX), Knight-Swift Transportation Holdings Inc. (NYSE:KNX), International Business Machines Corp. (NYSE:IBM), Ford Motor Co. (NYSE:F) and Chipotle Mexican Grill, Inc. (NYSE:CMG)

Thursday

• Before the bell: Altria Group, Inc. (NYSE:MO), American Airlines Group Inc. (NASDAQ:AAL), AstraZeneca Plc. (NASDAQ:AZN), Bristol-Myers Squibb Co. (NYSE:BMY), Caterpillar, Inc. (NYSE:CAT), CMS Energy Corporation (NYSE:CMS), Comcast Corporation (NASDAQ:CMCSA), Dow Inc. (NYSE:DOW), Harley-Davidson, Inc. (NYSE:HOG), Hertz Global Holdings, Inc. (NASDAQ:HTZ), Honeywell International Inc. (NASDAQ:HON), Merck & Co., Inc. (NYSE:MRK), Mobileye Global Inc. (NASDAQ:MBLY), Nasdaq, Inc. (NASDAQ:NDAQ), Newmont Corporation (NYSE:NEM), Royal Caribbean Cruises Ltd. (NYSE:RCL), Sanofi (NASDAQ:SNY), Southwest Airlines Co. (NYSE:LUV) and STMicroelectronics N.V. (NYSE:STM)
• After the close: Alphabet, Boyd Gaming Corporation (NYSE:BYD), Capital One Financial Corporation (NYSE:COF), Gilead Sciences, Inc. (NASDAQ:GILD), Intel Corp. (NASDAQ:INTC), Juniper Networks, Inc. (NYSE:JNPR), KLA Corp. (NASDAQ:KLAC), Microsoft, Roku, Inc. (NASDAQ:ROKU), Teladoc Health, Inc. (NYSE:TDOC), T-Mobile US, Inc. (NASDAQ:TMUS) and Western Digital Corporation (NASDAQ:WDC)

Friday

• Before the bell: AbbVie Inc. (NYSE:ABBV), Aon plc (NYSE:AON), Autoliv, Inc. (NYSE:ALV), AutoNation, Inc. (NYSE:AN), Barnes Group Inc. (NYSE:B), Charter Communications, Inc. (NASDAQ:CHTR), Colgate-Palmolive Company (NYSE:CL), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM) and Newell Brands Inc. (NASDAQ:NWL)

The SPDR S&P 500 ETF Trust (NYSE:SPY), an exchange-traded fund that tracks the performance of the broader S&P 500 Index, ended Friday’s session down 0.87% at $495.16, according to Benzinga Pro data. The ETF has pulled back from its all-time high (intraday) of $524.61 hit on March 28. The Invesco QQQ Trust (NASDAQ:QQQ), an ETF levered more to high-profile, non-financial tech companies, has lost 7.72% from its all-time intraday high of $449.34 (March 21).

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