Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
FACEBOOK, GOOGLE, AMAZON: reporting Q2 results
2020-07-29 • Updated
So, we have Alphabet (Thursday, 2330 MT), Amazon (Friday, 0030 PT), and Facebook (Friday, 0100 MT) reporting at the end of this week. This will surely have an impact on the stock market. Remember that the recent advance of the S&P was largely based on the tech stocks rally, and mostly those giants. Therefore, if the market is pleased with the Q2 results, we are likely to see another rally – at least, for those stocks. If not – well, the stock market is already cooling down after the rally in the middle of July.
In general, the results of the second quarter of 2020 are supposed to be relatively weak. They will reflect the performance that took place in March, April, and May – the months that suffered the most from the virus. So the question will be how correct the market will in predicting the weakness of these results. However, this weakness is expected to be exactly relative as some indicators for some companies may as well grow: in the end, Google, Amazon, and Facebook have been significantly outperforming the S&P.
So what do we have in store for each of those companies?
Google’s stocks already surpassed the pre-virus high and currently trade at $1 500 per share. Being in a local dropdown, the trajectory hasn’t broken the overall uptrend yet – rather, slowed it down. Wall Street expects to hear $37.4bln in revenue and $8.23 in earnings per share on Thursday night – that would make a 4% and 42% decrease respectively for each indicator compared to 2019.
If the actual information matches these expectations, the stock price will easily make it back up to the ranges of $1 600 in a few days. If not – the rise will slow down and may even convert into something more bearish.
This is definitely the best performer among the three. There is no need to justify it – it is easily visible. The growth of this stock was the least damaged and the most boosted by the virus. It currently trades at $3 000 experiences a consolidation similar to the other two.
A 28% increase in the revenue up to $81bln is predicted by Wall Street observers, while the EPS is expected to fall by 75% down to $1.32 compared to 2019. Judging the actual results will not be as straightforward as for Google and Facebook, but one thing is for sure: if Amazon beats these results, it may go really aggressive getting up to $3 500 in no time.
From the technical perspective, the situation with Facebook resembles that of its peers but is a bit different. This stock not only surpassed the pre-virus level but already took the same march upwards it was in until February. On the other hand, it has been in a slowed down channel longer than Google, for example, and appears to have more volatility, especially recently. In general, the emotional surrounding of Facebook appears to be more tense and susceptible to shifts.
On the other hand, Facebook is expected to show some good results: $17.4bln of revenue and $1.39 earning per share are a forecast for the Q2. As long as the company meets these expectations, its stock will take a stronger march upwards again.
The EU plans to intervene in markets directly to curb rising energy costs, threatening to push the Euro area's economy into a deep recession.
Yes, oil prices are burning right now, and inflation is getting hotter along with it worldwide. However, the oil's bullish momentum is under threat.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!
The Bank of England (BoE) has dramatically shifted its economic forecasts. They no longer expect a recession in the UK and have upgraded their growth projections. This year, the BoE predicts GDP growth of +0.25%, a significant improvement from previous expectations. Next year's forecast is even more optimistic, with a projected growth of 0.75%.