First Full Week of Q2 Earnings, PCE Out Friday
Monday, July 22nd, 2024
It’s a new trading week that’s starting slowly, but don’t be fooled. This is our first full week of Q2 earnings season, with no fewer than 845 companies scheduled to report results by the end of Friday. These include “Mag 7” members Alphabet GOOGL and Tesla TSLA Tuesday, which have posted disparate year-to-date gains of +28% and -3.7%, respectively. There will also be key economic data out this week, including Friday morning’s latest PCE report.
At this hour, we’re seeing a bounceback from last week. Even though the blue-chip Dow and small-cap Russell 2000 finished last week in the green, it was a bit of a correction for the Nasdaq, -3%, and the S&P 500, -1.5% over the past five trading days. Currently, the Dow is +50 points, the S&P is +30 and the Nasdaq has gathered +200 points. The Russell keeps its quest toward parity early this morning, +0.58% thus far in the pre-market.
Existing and New Home Sales reports for June will be out tomorrow and Wednesday. S&P flash PMI Manufacturing and Services for July hit the tape Tuesday. Thursday beings us Weekly Jobless Claims, as well as Durable Goods Orders for June, Advance Trade Balance and the first print on Q2 Gross Domestic Product (GDP) — expected to come in at +1.9%, half a point higher than the final read for Q1.
For Friday, the Fed’s preferred metric for inflation comes out. Personal Consumption Expenditures (PCE) for June projects +2.5% headlines for both year over year and core year over year. As recently as September of last year, we were seeing +3.37% headline PCE year over year. We’re also above the +2.48% lows posted in January of this year, but thankfully we look to have gotten over the inflation hump and are back down to early 2021 levels.
Aside from “Mag 7” Q2 earnings, we’ll hear from plenty of well-known companies. Tomorrow will also bring us numbers from General Motors GM, General Electric GE, Lockheed Martin LMT and UPS UPS. Wednesday will be Chipotle CME and Thursday AbbVie ABBV. Other Mag 7 firms like Microsoft MSFT and Apple AAPL are expected to report next week.
Verizon VZ is out with Q2 results this morning. Earnings of $1.15 per share beat the Zacks consensus by a penny (and lower than the $1.21 per share reported in the year-ago quarter), while revenues of $32.8 billion missed estimates slightly while showing modest year-over-year growth. Verizon posted 11.5 million total broadband subscribers in the quarter, +17% year over year. Its slight earnings beat extends its quarterly streak to six. Shares are -3.5% at this hour, cutting in half its gains year to date. For more on VZ’s earnings, click here.
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