Earnings are one of the most anticipated and commonly followed events investors follow each quarter. Since the start of the stock market, earnings have given investors boosts of confidence or lack thereof in their investments or prospective investments – helping make crucial decisions by verifying whether a company’s performance matches what was expected. This week, many earnings will be coming out from some of the biggest companies in the world. Amazon, Apple, Facebook, Microsoft, and Google will all be releasing their second quarter earnings results.
So far, the stocks have performed tremendously with Google being the top performing FAANG stock of 2021 (so far). From the S&P 500 companies that have already reported earnings – 88% have topped Wall Street’s earnings per shares estimates. Do you think this trend will continue for these blue-chip tech stocks? If unsure, there’s another major factor to potentially make a move on this week, and that’s The Feds. The Feds will be kicking off a two-day meeting today to decide key economic policy, specifically, how to deal with growing inflation within the quickly recovering economy. Although many anticipate there may be a change coming to interest rates rising due to the fast recovery. Powell has said in recent weeks that the inflation rate will not change soon, and with the risks of the Delta variant still present in the economy – this may be true. Yet, some investors still believe The Fed will raise interest rates too soon overall even if it’s not happening tomorrow. What do you think about these interest rates? And will this meeting see them staying low or rising sooner than we thought?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.