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Having A Look at Stock Market Record Highs Ahead of Earnings Reports

Skerdian Meta•Tuesday, January 30, 2024•2 min read

Stock markets started the week on the upper foot yesterday once again, having shown incredible resilience in 2023, despite the economic weakness that we saw last year worldwide. Today’s sentiment remains upbeat after yesterday’s historic move to record highs which keeps getting higher, with the S&P500 approaching 5,000 points. However, traders look nervous as we are waiting for the earnings reports from major companies today.

On Friday last week S&P 500 made new record highs breaking above the previous high from back in January 2022, before equity markets plummeted that year. This bullish move which started in late 2022 has confirmed that stock markets are on a bull market. However, earnings reports from major companies are an important event for stock and market sentiment overall. European markets closed earlier today, so they have missed all the agitation from the upcoming earnings figures. Below are the gains from European indices.

Daily % Charge in Main European Stock Indices:

• German DAX index +0.2%
• UK FTSE 100 index +0.5%
• French CAC index +0.5%
• Stoxx 600 index +0.4%
• Italy MIB index +1.3%
• Spain IBEX index +1.5%

Monthly % Charge in Main European Stock Indices:

• German DAX index +1.3%
• UK FTSE 100 index -0.8%
• French CAC index +1.3%
• Stoxx 600 index +1.4%
• Italy MIB index +0.9%
• Spain IBEX index -0.6%

This week is loaded for stock markets; besides the FOMC and BOE meetings, we have earnings from Big Tech companies such as Apple, Meta, Amazon etc which are all expected to report results in the coming days. Today after the closing we have both Microsoft and Alphabet will release their most recent earnings. What do experts expect?

Financial Estimates for Alphabet:

• Earnings Per Share (EPS):
  • Adjusted EPS: $1.59
  • Year-over-Year Increase: 51.4%
  • Previous Year: $1.05
• Revenue:
  • Total Revenue: $85.33 billion
  • Year-over-Year Increase: Not specified
  • Previous Year: $76.048 billion

Segment Revenue:

• Google Cloud:
  • Revenue: $8.94 billion
  • Year-over-Year Increase: 22%
  • Previous Year: $7.32 billion
• YouTube Ads:
  • Revenue: $9.21 billion
  • Year-over-Year Increase: 16%
  • Previous Year: $7.96 billion

Other Key Figures:

• Traffic Acquisition Costs (TAC):
  • TAC: $14.1 billion

Financial Estimates for Microsoft:

• Adjusted Earnings Per Share (EPS):
  • Expected: $2.77
  • Year-over-Year Increase: 19.39%
  • Previous Year: $2.32
• Revenue:
  • Expected: $61.14 billion
  • Year-over-Year Increase: 16.01%
  • Previous Year: $52.7 billion

Segment Revenue:

• Intelligent Cloud Segment:
  • Expected Revenue: $25.3 billion
  • Year-over-Year Increase: 17.7%
  • Previous Year (Q2): $21.5 billion
• Overall Microsoft Cloud Revenue:
  • Estimated: Exceeding $32.2 billion
  • Year-over-Year Increase: 18.81%
  • Previous Year: $27.1 billion
• Productivity and Business Processes:
  • Expected Revenue: Exceeding $19 billion
  • Year-over-Year Increase: Not specified
  • Previous Year (Q2): $17 billion
• More Personal Computing Business:
  • Expected Revenue: $16.8 billion
  • Year-over-Year Increase: Not specified
  • Previous Year (Q2): $14.2 billion

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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