With the first truly hectic week of corporate earnings complete, the S&P 500 appears headed to a longer earnings recession, but reports from three of the large U.S.
Those three companies large profit declines in the first half of the year put them in the top-five contributors to the earnings recession, as Apple dealt with a tough sequel to iPhone X sales, Facebook accounted for billions of dollars in government fines and Exxon suffered from a lagging chemicals business.
A big turnaround from some of the largest companies in the index could certainly turn that around, but analysts estimates point to the earnings decline steepening.
While the report provided optimism initially, the one-time windfall and pessimism from other chip makers quickly tamped down any cheers for the chip sector. Investors will be watching AMDs report to gain a better read on the state of corporate spending, as well as to gauge the traction of AMDs own offerings relative to Intels.
Expectations arent particularly high for Apple heading into the companys Wednesday afternoon earnings report, with analysts calling for roughly flat revenue relative to a year earlier.
Those reports will come in the shadow of Verizon Communication Inc.s VZ, -0.35% numbers, which showed strong postpaid phone additions amid a more promotional wireless environment. AT&T and T-Mobile will show if they benefited as well from this environment and could also provide some qualitative commentary on the early weeks of iPhone 11 sales.
For Alphabet, spending trends will be an area of focus as capital expenditures and operating expenditures have been rising on an absolute basis.