WALL Street is experiencing its best month since January and looks poised to extend the rally with a deluge of earnings this week, though significant gains may be harder to come by with major indexes at record highs.
Eight Dow components and Apple are among the companies that will report in one of the busiest weeks of the earnings season. Some 157 companies in the S&P 500 index will release results.
Second-quarter earnings have been above forecasts so far, but analysts’ estimates have dropped precipitously since the start of the year. Earnings for S&P 500 companies are seen rising 2.9 per cent, according to Thomson Reuters data, down from an 8.4 per cent growth expected at the start of the year. Revenue is seen growing 1.1 per cent.
Of the 104 companies in the S&P 500 that have reported through to Friday, 65.4 per cent had earnings above analyst expectations, while 51 per cent topped revenue estimates.
Apple, the second-largest US company by market capitalisation, will be watched to see if it can reverse the trend of weaker-than-expected tech sector earnings. The company, which is due to report tomorrow after the market’s close, is expected to show a drop of more than 21 per cent in quarterly profit and revenue growth of 0.2 per cent.
This week’s earnings roster includes Dow components AT&T , McDonald’s and Boeing. Ford Motor Co, Visa and United Parcel Service are also due. UPS, which is viewed as a proxy for business activity, recently cut its outlook, citing a weak US economy.
New York Report