Here's what's going on in the market this week...
- Last week saw 34% of the S&P 500 stocks report, and mega-tech names did not disappoint. Facebook (FB), Microsoft (MSFT) and Amazon (AMZN) all exceeded expectations, and were a big reason the S&P 500 cash index hit two new all-time highs on a closing basis last week. The index closed at the high of the day and within 1.03 points (or 0.053%) of its intraday all-time high. But the fireworks aren't over. Fasten your seatbelts (again) because this week is the second busiest reporting week of earnings season, with 135 companies (or 27% of the S&P 500) scheduled to report. Here are three to watch...
- Earnings #1: Apple (AAPL) will report earnings after the close on Tuesday. Not much is expected - either good or bad - from the world's second biggest company by market capitalization (trailing only MSFT, and that by a small margin). iPhone sales are expected to be lower than a year ago, with that drop partially offset by double-digit growth in services. With those added together, analysts are still expecting a -6.1% drop in revenue vs. the same quarter last year. With muted expectations, any of three things could actually move the stock higher: 1) iPhone sales numbers beating lowered expectations; 2) Better than expected Year-over-Year (YoY) services revenue growth or, most importantly; 3) Profit margins that exceed expectations. With price cuts in place to drive iPhone sales, if overall profit margins for the past quarter and guidance for next quarter both remain healthy, that will give traders and investors hope for continued stock price momentum.
Want to know all about the other important earnings calls this week? I reserve the full Monday Millionaire briefing for 10-Minute Millionaire Insider subscribers. To learn how you can get my full weekly analysis, plus trade recommendations that could help you pave the way to your first million, click here to learn more about becoming an Insider!
