This week, the stock market is weighing the results of seven major companies’ earnings. Investors and analysts are mulling over what these results mean for corporate America. The week’s earnings highlights include companies in the semi-conductor space, growth tech, consumer discretionary, and energy/oil sectors.
A number of household names are reporting their results for the April-through-June quarter. These include major retailers and technology firms that could sway the markets. As of Tuesday, 87% of S&P 500 companies have reported their results so far. Of those, 75% reported better-than-expected earnings per share and more than 70% surpassed revenue estimates. While the market’s expectations are high, there is still some uncertainty in these companies’ results.
The week of August 11-14 will be a pivotal one for the market. The Fed’s policy meeting on Wednesday is likely to receive the most attention from investors. The market will also pay close attention to data on the second-quarter GDP growth. The Atlanta Fed’s GDPTracker tool estimates that the economy is on pace for a 0.3% increase in second-quarter GDP growth.
The market made a new all-time high on Thursday and has since held gains on Friday. This week, mega cap tech stocks report, with Apple the last one to report. Both will keep investors’ attention as earnings season nears its climax. This week, investors will be focused on these mega caps and the statement from the Fed.
If you want to know what stocks are worth buying, earnings are one of the most important factors. After tax profit is a good indicator of a company’s future profitability. Earnings are not the only factor in investing, but they can help you make informed decisions. While the results are not always predictable, earnings can help you make a more informed decision about your next stock purchase.
The stock price of a company can be influenced by the earnings compared to analyst expectations. If earnings exceed analyst expectations, the stock price will go up. However, if earnings fall short of expectations, the stock price can drop. It is a good idea to buy a stock when it is performing well and sell when it isn’t.
One of the best ways to get in on a stock’s earnings is to use options. You can profit from earnings by buying options before the release of the results. Using strangles and straddles is one way to minimize your risk of buying shares before earnings. This is a good strategy for investors who are not comfortable buying shares before earnings.
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