Will the Earnings Reports Continue to Disappoint This Week?

Wall Street ended last week with significant losses after disappointing earnings reports from Tesla and Alphabet, but it might get worse.

Written by: Skerdian Meta • Monday, July 29, 2024 • 2 min read

• Last updated: Monday, July 29, 2024

Wall Street ended last week with significant losses as disappointing earnings reports from major tech companies, including Tesla and Alphabet, cast doubt on the sustainability of the recent bull market fueled by the rise of artificial intelligence. The US stock indices experienced sharp declines, particularly among megacap technology stocks, raising concerns about the strength of the AI-driven market rally.

Tech stocks are in a retreat period

Market Reaction to Weak Tech Giants’ Earnings and Upcoming Earnings

Following the release of second-quarter earnings, the Nasdaq Composite suffered its worst single-day drop in two years, losing nearly 650 points, or more than 3%. Alphabet’s stock fell by 5% despite reporting better-than-expected revenue and earnings. Tesla, however, saw a steep 20% decline after revealing a 45% decrease in profits from the previous year. The broader S&P500 also fell 2.2%, reflecting widespread investor anxiety over the tech sector’s future.

This week is crucial for the market, with significant earnings reports expected from major companies, including Microsoft, Meta Platforms, Apple, and Amazon. Other notable companies reporting include Boeing, Qualcomm, Intel, Exxon Mobil, Pfizer, Merck, Starbucks, AMD, and Chevron. These reports will be closely watched for further indications of market trends and economic health.

Nasdaq Chart Daily – Will the 100 SMA Hold As Support This Week?

The last two weeks have been quite disappointing for the Nasdaq index, as the AI trade takes a breather, while weak tech earnings results weighed further on the main index. The price has retreated from around 21,000 points to 19,000 points, which means a 10% retreat in two weeks. If this week’s earning disappoint, then the decline will likely stretch further to the downside. The next target comes at around 18,000 points, where the 200 daily SMA (purple) is heading.

Multinationals Earnings Reports Schedule for the Week

Monday

Before Open: McDonald’s, Phillips
After Close: Tilray

Tuesday

Before Open: SoFi, Pfizer, PayPal, BP, P&G, Corning, Merck
After Close: AMD, Microsoft, Starbucks, Pinterest

Wednesday

Before Open: Boeing, Kraft Heinz, Altria
After Close: Meta (Facebook), Qualcomm, Carvana, Lam Research, Western Digital

Thursday

Before Open: Moderna, ConocoPhillips, Wayfair, SiriusXM
After Close: Amazon, Apple, Intel, Coinbase, DraftKings

Friday

Before Open: ExxonMobil, Chevron, Frontier Communications

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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.