Tech Time. Microsoft, Advanced Micro Devices, Alphabet Reporting closed today
Ready or not, it’s time for all of us to put on our Fed hats. Only six weeks have passed since the last meeting of the Federal Open Market Commission (FOMC), but they are meeting again today. The usual press conference, attended by Fed Chairman Pow Jerome Powell, comes tomorrow, the meeting tomorrow at 2 pm և analysts do not expect any change in policy. Trading may go a little slower before all this, which is kind of typical when investors expect the latest from Powell և. The key indexes did not move much during the night session. That said, the Fed could be the third most important event this week, after gross domestic product (GDP) and Tech Earnings. Looking at this afternoon, Tech is focusing on revenue from Alphabet (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT) and Advanced Micro Devices (NASDAQ: AMD). Moreover, with all that և below և. About a third of this earnings season is now over, with 84% of companies surpassing Wall Street’s consensus earnings estimates, according to FactSet. This is quite high above the average level of positive surprises, which indicates that analysts could be very conservative. General Electric (NYSE: GE) performed very well, but stocks fell slightly, and Starbucks (NASDAQ: SBUX) also reported later, which could be interesting. Ahead of the Fed as investors await views on the latest strong data, unlike last month, this time we are not getting a “plot” for Fed officials’ forecast interest rates. That is why we have to wait until the FOMC meeting in mid-June. But Powell may be asked to comment on recent economic growth, which is higher than expected. The Fed returns to the picture of healthy jobs, which has the highest index in its list, վերջին the last two preliminary reports of unemployment claims և March wages were both about progress. It would be interesting to get Powell’s thoughts on these numbers և what they might mean to move forward. That said, it would be amazing to hear Powell say something about being arrogant soon. The Fed’s legs seem to be firmly planted in the dovish camp, և Fed Fund futures suggest a change in interest rate policy this year. Powell probably wants to see some other solid job reports, including May salaries, before making new job postings. It’s a kind of sad time that the Fed meeting ends on Wednesday. Powell մնացած The rest of us will see the government’s assessment of Q1 GDP growth the day before (see below ավելին). The data on the weekly preliminary unemployment claims are also presented on Thursday. After two strong weeks in a row, it would be good to see more improvements. However, something less than 600,000 will increase the number of reports below that level. That’s still high, but a significant improvement after months of 700,000-800,000 new claims a week. Before Covid, the average was below 300,000, but it is unclear when we will return to that level. Heart Of Tech Lineup As Microsoft, the Alphabet Approach Plate, in addition to the Fed, wages remain hot this week, highlighted by a few major semiconductor companies (see below). After today’s closing, there are also MSFT և Alphabet (GOOGL), and after the closed call on Wednesday, Apple (NASDAQ: AAPL). Amazon (NASDAQ: AMZN) will swim on Thursday. We’ll talk more about AAPL և AMZN tomorrow, but MSFT արդյուն GOOGL’s cloud computing results are likely to be high in most investor watch lists, as well as in the next quarter. In the second quarter of last year, GOOGL saw its advertising revenue plummet as companies held back advertising costs against Covid. As soon as the economies started, GOOGL benefited from the reimbursement of advertising costs. That’s a big deal when you consider that it last consumed 81% of Google’s total revenue. The question is whether that force continued in Q1. The Google Cloud platform also had an amazing run last year, but still accounts for only a small portion of total revenue, lagging behind competitors such as MSFT and AMZN. We’ll see if that side of the company gets more traction. In the last few months, the shares have been torn, an increase of about 35% so far. MSFT’s recent announcement of a $ 20 billion acquisition of Nuance Communications (NASDAQ: NUAN) software will probably be on people’s minds when the company announces its Q3 fiscal profit later today, but it will be the usual suspects, such as the cloud, Office. , և LinkedIn. The last time MSFT reported Q2 Azure tax revenue increased by 50% and total cloud computing revenue increased by 34%, setting high benchmarks for MSFT. That’s not all. Other key reporting companies over the next few days include Starbucks, Amgen (NASDAQ: AMGN), Caterpillar (NYSE: CAT), Baxter (NYSE: BAX), Ford (NYSE: F) and Facebook (NASDAQ: FB). Fasten those straps. Tesla quarter is fully charged, but the shares go unpaid All of this comes after last night’s hectic earnings, representing revenue from the latest Tesla EV universe (NASDAQ: TSLA). Stocks fell sharply in pre-market trading, despite a sharp drop in earnings and a number of other indicators. The irony behind TSLA’s earnings is that one of the areas where they did their best was selling a piece of their Bitcoin holding. Many stocks have slipped in this earnings season with good results, so it probably just reflects how the overall market is close to record levels. As we have already said, the expectations are high, և climbing requires a lot. So far, the theme of this earnings season is that you can have a good quarter, but your shares will not necessarily be paid. ONE DAY. A TALE OF TWO PRODUCTS. Looking back over the last year through this chart, gold (/ GC-candlestick) ում raw materials (/ CL-purple line) were mostly sold by spot. Strong economic growth in the United States pushed crude last month to a 14-month high, not lower than it is now, while gold was crushed earlier this year in part due to maturity, which fueled market volatility. Recently, Gold is returning to experience, but it is still below the level earlier this year. If the Fed remains small, it could provide more support for gold. Data source: CME Group. The source of the charts. For illustration purposes only. The performance of the past does not guarantee future results. GDP view. Of all the government data leaked this week, few reports are more important than the Q1 Gross Domestic Product Preliminary report released on Thursday. The Wall Street consensus is for 6.5% profit, according to research firm Briefing.com. After 4.3% profit in the previous quarter, it would not be too embarrassing. However, the Atlanta Fed’s GDPNow calculator looks even better than the analyst community, with a forecast reading of 8.2%. It should probably be noted that we do not often see such readings on GDP. A report by Goldman Sachs (NYSE: GS) recently forecast 8% year-over-year growth, the best seven-decade high in a year. Obviously, this is against an easy comparison, given that 2020 is a recession. The most important question, Feder probably asks, is whether this kind of growth can bring the economy back to where it was before Covid. Some indicators, such as production և housing, have improved since the days of initialing. Others, such as unemployment and earnings, are not there yet. About patrolling with chips. The two major semiconductor companies, Texas Instruments (NASDAQ: TXN) and Advanced Micro Devices, are expected to close after closing today. Before they reach them, it will help to buy land, looking in a little more detail at what Intel (NASDAQ: INTC) said in its report last week.]INTC Q1 earnings and earnings exceeded analysts’ expectations, but the quarter did not end without setbacks. First of all, the overall sales were mostly insignificant, which raises the question of how other chipmakers could do in the quarter. Sales of INTC data center chips rose last year due to in-house demand, but the chips maker faces stiff competition from AMD և Nvidia (NASDAQ: NVDA). Look for money that can shed more light on the competitive image of the data chip today. On the downside, Apple, which uses INTC chips, has begun to turn to chip production for its Mac line. INTC has announced plans to invest $ 20 billion in the development of new chip plants. Instead of molding factories to mold its products, it aims to become one, producing not only its own chips but others as well, which is a potential key step for the chips giant. What will TXN և AMD think after this news? Vertical integration is now the state of the industry. Is INTC’s move a potential competitive challenge? Maybe we’ll have a chance to find out after the closing. Yield capacity may depend on Europe. As the Fed meets in Washington this week, there is still much debate on Wall Street as to why Treasury yields have not continued. The ten-year yield was close to 1.78% at the end of last month, but is close to 1.58% this morning. According to some analysts, one of the possible reasons is the lack of profitability competition in the main German market. Recently, the bond provided a negative yield of 0.25%, which means that the spread between the US և European benchmark exchange rate is around 180 basis points. That was above the 150 base points earlier this year. As long as the US return premium is so high, US Treasuries are likely to remain at levels where they will attract profitable investors. This purchase rate pumps the underlying asset և reduces the yield. However, there is an opportunity to turn around the European economy, which could mean a narrowing of that spread – perhaps some competition from European and other global bond markets. This is something that can be seen in May, especially if Europe is making more progress through vaccinations. If bond yields start to creep, look for a better chance that the 10-year Treasury yield will continue to move steadily higher, especially if US inflation rates remain as stable as in March for the next few months. Monday’s weak bond rally strengthened the potential return on yield. TD Ameritrade® commentary for educational purposes only. Member of SIPC: Image Sourced from Pixabay See more from Benzinga Click here for transaction options from BenzingaC Can you impress Apple’s revenue again? Tough action to follow to iPhone maker in fiscal Q2. How can delicacy change your health և smart pitch as Microsoft reports Q3 results © 2021 Benzinga.com? Benzinga does not provide investment advice. All rights reserved.