SAN FRANCISCO (reuters) – The so-called INTERNATIONAL stocks in the spotlight on Wall Street this week, with Amazon’s (AMZN.(O) a-z (GOOGL.(O) and Facebook (FB.(O) set to report when the S&P 500 is nearing an all-time high.
A FILE PHOTO of Stickers bearing the Facebook logo is pictured at the Facebook Inc. F8 developers conference in San Jose, California, united states, April 30, 2019. REUTERS/Stephen Lam/File Photo
The group of high-growth stocks that have supercharged the S&P 500 in decade-long rally in the past few years, the results have been mixed in 2019 at the latest, with Facebook and Amazon, are dramatically better than the broader market, while Netflix (NFLX.Oh and Google, the owner of the English Alphabet have been delayed.
Facebook reports Wednesday after the bell, Amazon, and the Alphabet is on Thursday, but all of which together account for 9% of the S&P 500, the value of the stock market. In general, companies will report this week, accounting for about 30% of the S&P 500’s value.
Investors ‘ reactions to these reports can have an impact on the wider market sentiment, as the S&P 500 trades up to 1% up to and including 12 July, a record close, with investors widely expecting the Fed to cut interest rates later this month. The benchmark index, up 0.3% on Monday.
“I’m more concerned about the way in which the reports of the letters of the Alphabet and Facebook will have an impact on other tech stocks, as they will suck the oxygen out of the room every time something happens to them,” said Jake Dollarhide, the chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, usa, is the owner of the shares, in the Amazon, and the Alphabet.
The reporting of this week, chipmakers Intel (INTC.(O), Texas Instruments (TXN.(O) and Xilinx (XLNX.(O), which is likely to give investors fresh information about the impact of the US-China trade war and the end of the 5 G’s growth, and if and when a downturn in the global semi-conductor demand, it may end up.
Netflix has tumbled 14 percent since Wednesday, when it reported a weaker-than-expected subscriber growth. Faced with an impending wave of competition in the video streaming service, an increase of 18% year-to-date, the S&P 500’s 19% gain. The alphabet is up to 8% in 2019, while Amazon’s has increased by 31%.
When Facebook reports, investors will be focusing on how to lead the social network’s response to the audit, the processing of the personal data of the user, and how the planned measures, which include a “Clear History” option, it might hurt advertising revenues.
Reflecting the improved expectations, Facebook has grown from 51% in 2019, 7% lower than the record high set a year ago, just before it is tipped to be a multi-year pressure on margins, sending the stock up in the months of fall.
Facebook in June, revenue is seen to jump 25% to $16.5 billion, with net income up 5% to $5.4 billion, equivalent to $1.87 per share, in accordance with Refinitiv.
Analysts expect the Alphabet to be a fourth quarter revenue to climb 17% to $38.2 billion, with net income falling 4% to $7.9 billion. Analysts expect that Amazon’s quarterly revenue was up 18% to $62.5 billion, with net income growing by 11% to reach $2.82 billion.
Reporting by Noel Randewich, additional reporting by Amy, Caren Daniel, Bengaluru; Editing by Nick Zieminski