Despite strong trading and encouraging news from the labor market, benchmark stock indexes pulled back after making modest gains early in the week. Before Friday’s open, S&P 500 lost about 25points since mid-week, while Dow Jones Industrial Average shed 165 points.
Professional services firm Accenture gobbled up yet another tech firm — this time, Germany-based Google Cloud services boutique Wabion. In another tech deal, digital payments company Square bought messaging platform Crew.
As part of expanding its hybrid cloud consulting services, IBM agreed to acquire Bluetab Solutions Group for an undisclosed amount. Meanwhile, vaccine major AstraZeneca moved closer to closing its Alexion buyout after the deal got antitrust approval from European regulators.
The country’s biggest financial institutions reported their quarterly results this week, heralding the earnings season. Benefitting from the relaxation of COVID-related restrictions and the resultant improvement in consumer spending, major banks registered a surge in earnings despite muted top-line performance.
On Tuesday, JPMorgan Chase and Goldman Sachs published their second-quarter report and were joined by soft drink behemoth PepsiCo in the premarket hours.
The spotlight remained on bank earnings Wednesday, when of Bank of America, Citigroup, and Wells Fargo. The other important Wall Street entities that reported mid-week include investment manager BlackRock and Delta Air Lines.
Drug store chain United Health Group posted mixed results for its most recent quarter when positive top-line performance was more than offset by elevated costs. The earnings announcements of Morgan Stanley and India-based software firm Wipro were the other major events of the day. Charles Schwab Corporation reported double-digit earnings growth early Friday.
When the market opens next week, all eyes would be on IBM, which is scheduled to publish financial data on July 19 after the market’s close. The main events scheduled for the next day include earnings announcements of aviation giant United Airlines Holdings, Halliburton Company, Chipotle Mexican Grill, and video streaming platform Netflix.
On July 21, beverage giant Coca-Cola and chipmaker Verizon will be reporting. More airline earnings are on tap on July 22 when American Airlines Group and Southwest Airlines are expected to publish their results.
The day will also witness the release of financial numbers by AT&T, Abbot Laboratories, Biogen, Intel, Domino’s Pizza, Snap and Twitter. The main events for July 23 are the release of statistics by credit card firm American Express Company and energy explorer Schlumberger.
Key Earnings to Watch
Wednesday: Rogers Communications, Novartis AG, SAP SE, Johnson & Johnson, Baker Hughes, The Coca-Cola Company, Interpublic Group of Companies, Verizon, Seagate Technology, Harley-Davidson, United Airlines, Kinder Morgan, and NETGEAR
Thursday: ABB Ltd, Unilever PLC, Biogen, Roche Holding, Discover Financial Services, Dow, American Airlines Group, AT&T, Abbott Laboratories, Domino’s Pizza, Alaska Air Group, Snap, Southwest Airlines, Skechers USA, VeriSign, Intel Corporation, and Twitter
Key US Economic Events
The following are notable companies which have reported their earnings last week. In case if you have missed catching up on their performance, click the respective links to skim through the transcripts to glean more insights.
If you want to listen to how management responds to analyst questions and the tone they use, you can head over to our YouTube channel to listen to conference calls on the go.
Shares of KB Home (NYSE: KBH) were up slightly on Friday. The stock has dropped 40% year-to-date and 35% over the past 12 months. The company delivered mixed results for
Warehouse behemoth Costco Wholesale Corporation (NASDAQ: COST) has reported a 15% increase in fourth-quarter 2022 revenues, which translated into double-digit growth in net income. Fourth-quarter revenues increased sharply to $72.09 billion.
Cargo giant FedEx Corporation (NYSE: FDX) Thursday reported a decline in first-quarter adjusted earnings, despite an increase in revenues. The company also provided guidance for fiscal 2023. Net income, adjusted