Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


World Week Ahead: Focus on US earnings

World Week Ahead: Focus on US earnings

By Margreet Dietz

Jan. 20 (BusinessDesk) – As the US corporate earnings season gathers steam, investors are keen to see that the latest results justify current valuation levels.

First, on Monday, US markets will be closed for the Martin Luther King holiday.

Companies reporting their latest quarterly earnings in the coming days include Microsoft, IBM, Netflix, McDonald’s, Advanced Micro Devices, Halliburton, and Johnson & Johnson.

“Earnings are front and centre and to that end I think it’s still too early to have a good read on fourth-quarter results,” Terry Sandven, chief equity strategist at US Bank Wealth Management, told Bloomberg News.

Out of the 52 Standard & Poor’s 500 companies that have posted results so far, 62 percent have surpassed analysts’ profit estimates, and 63 percent have bettered revenue projections, according to data compiled by Bloomberg.

In the past five days, the Dow Jones Industrial Average rose 0.13 percent, while the Nasdaq Composite Index gained 0.55 percent. The S&P 500 slipped 0.2 percent.

Last week, companies that bettered expectations included Morgan Stanley and its shares jumped 4.4 percent on Friday.

But Intel offered disappointment. Its shares slid 2.6 percent on Friday after the company’s earnings outlook, announced after the closing bell on Thursday, fell short of expectations. On Friday Intel said it will reduce its global workforce by about five percent this year.

General Electric also failed to deliver, falling short of a target for its profit margins, and sending its shares 2.3 percent lower on Friday.

"The transition is continuing to take time and GE is going to really have to hit these targets, and it's disappointing they couldn't quite get it done on the industrial target this year," Christian Mayes, an analyst at Edward Jones, told Reuters.

Best Buy was another company that fell short, reporting a drop in holiday sales, sending its stock into a tailspin. Shares sank 29 percent on Thursday, followed by another 9 percent slide on Friday.

This week is a light one in terms of US economic data. Most reports are scheduled to be released on Thursday, including weekly jobless claims, the PMI manufacturing index flash, existing home sales, FHFA house price index, and leading indicators.

On Tuesday, the International Monetary Fund will offer its outlook for the global economy, and the World Economic Forum starts the next day in Davos, Switzerland.

The World Bank turned more optimistic about the worldwide outlook, last week boosting its expectations for global economic growth this year to 3.2 percent, up from its June projection of 3 percent. It also lifted its forecast for growth in the euro zone to 1.1 percent this year, up from its previous estimate for 0.9 percent.

Europe’s Stoxx 600 Index climbed 1.8 percent last week, as did France’s CAC 40. The UK’s FTSE 100 rose 1.3 percent, while Germany’s DAX jumped 2.9 percent.

Investors will eye Germany’s ZEW institute’s monthly index of investor confidence, due Tuesday, to gauge sentiment in Europe’s engine economy.

China is set to release third-quarter and full-year 2013 gross domestic product on Monday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news