Earnings season heats up this week, with Big Tech taking center stage.
Google and YouTube owner Alphabet is set to release its results weeks after announcing it was selling stock to finance the construction of AI data centers. The move divided investors: AI is spurring demand for Alphabet's cloud business, but worries that building the technology could drag on profit as infrastructure depreciates have intensified.
Still, a number of developments have bolstered confidence in Alphabet, whose shares have roughly doubled in the past year. Consumers have embraced the company's Gemini chatbot, though news reports saying that the Gemini 3.5 Pro model will be delayed weighed on investor sentiment late last week. Meanwhile, Alphabet has found a way to reduce how much memory AI uses, which could alleviate some of the pressures involved with acquiring components during a memory and data storage shortage.
Tesla's results, like Alphabet's, are due Wednesday. CEO Elon Musk has said he wants to shift the business beyond cars and into robots and AI. Tesla is tripling its capital expenditures as it leans into AI endeavors. Still, some believe Musk will eventually seek to merge Tesla and SpaceX, a space, communication and AI company he recently took public.
The Magnificent 7 members' results come at a volatile time for the AI trade. SpaceX shares have dropped below their IPO price, and sharers of SK Hynix (SKHY)—the world's largest supplier of high-bandwidth memory—plunged days after debuting on the Nasdaq. Given the jitters, investors will be looking for more clues as to what might come next when ServiceNow reports Wednesday and Intel reports Thursday.
The major stock indexes posted losses last week as shares of chipmakers fell sharply, while investors digested a flurry of earnings reports from major banks and several other noteworthy companies. The tech-heavy Nasdaq declined 2.9% last week, while the S&P 500 and Dow Jones Industrial Average shed 1.6% and 0.9%, respectively. Investors also kept close tabs on developments in the Middle East as fighting between the U.S. and Iran intensified, sending oil prices sharply higher and sparking concerns about potential economic consequences. (Read our coverage of Friday's market action here.)
Here's a rundown of top events this week. TradingView publishes a more detailed calendar, but clicking the link will take you off the Investopedia site.
Tuesday, July 21: General Motors (GM) is set to release its second-quarter results at 6:30 a.m., and host a conference call at 8:30 a.m. ET. The automaker recently restructured its electric vehicle business in response to the expiration of a related tax credit.
Tuesday: Capital One Financial (COF) is slated to publish its second-quarter results at 4:05 p.m. ET, followed by a conference call at 5 p.m. ET. The bank recently reached a $425 million settlement in a lawsuit over how it calculated interest rates on 360 Savings accounts. Capital One missed earnings expectations early this year.
Tuesday: Alaska Air Group (ALK) is set to release its second-quarter results after the closing bell, followed by a conference call on Wednesday at 11:30 a.m. ET. Southwest Airlines (LUV) and American Airlines Group (AAL) also report this week and are scheduled to host conference calls on Thursday. Shares in air carriers dipped when Delta Air Lines (DAL) released results earlier this month. Although Delta performed better than expected, fuel expenses climbed. Customers haven't been deterred by higher ticket prices, according to airline executives, and less capacity industrywide may bolster shares.
Wednesday, July 22: AT&T (T) is scheduled to release its second-quarter results before the stock market opens and host a conference call at 8:30 a.m. ET. The telecommunications company topped expectations last quarter. Some of its competitors will also publish results this week, including T-Mobile (TMUS) and Verizon (VZ).
Wednesday: Alphabet (GOOG, GOOGL) is set to release its second-quarter results, followed by a conference call at 4:30 p.m. ET. The company beat expectations last quarter.
Wednesday: ServiceNow (NOW) plans to release its second-quarter results after the stock market closes, and host a conference call at 5 p.m. ET. The company's shares dipped last week when IBM told investors that clients were cutting software spending.
Wednesday: Tesla (TSLA) is slated to publish its second-quarter numbers after the closing bell, and hold a live question-and-answer webcast at 5:30 p.m. ET. Tesla's second-quarter deliveries beat estimates.
Wednesday: AMD (AMD) will host a two-day conference in San Francisco, where it's expected to showcase its latest AI chips. Some analysts think new partnerships or customers could also be announced.
Thursday, July 23: Albertsons Cos. (ACI) is set to release its fiscal first-quarter results before the opening bell, and host a conference call at 8:30 a.m. ET. Consumers have been stretched and focused on reducing their grocery bill for months, according to supermarket operators.
Thursday: Comcast (CMCSA) is scheduled to hold a conference call on its second-quarter results at 8:30 a.m. ET, with the figures expected shortly beforehand. The internet and cell service company recently announced plans to spin off NBCUniversal.
Thursday: Intel (INTC) plans to publish its second-quarter results after the closing bell, and host a conference call at 5 p.m. Strong results and a bright outlook sent shares flying last quarter. Investors have also been cheering the chipmaker's recent deals, including with Google and Musk's Terafab project.
Friday, July 24: American Express (AXP) plans to share its second-quarter results at 7 a.m. ET, followed by a live audio webcast at 8:30 a.m. ET. Executives sometimes share viewpoints on the health of the economy and the consumer in their earnings commentary.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
