This week marks the busiest of the S&P 500 earnings season, with 171 companies scheduled to report, including 10 Dow 30 components. Among the most anticipated are the "Magnificent Seven" tech giants, with Microsoft leading the pack on Tuesday followed by Meta Platforms on Wednesday. Amazon and Apple will both report on Thursday.
Investor focus will be on whether the recent sell-off sparked by disappointing results from Tesla and Alphabet was a one-time event or a broader trend. Concerns remain about Tesla's falling margins and Alphabet's heavy investment in Waymo, its self-driving car unit.
FactSet reports that 41% of S&P 500 companies have reported Q2 results so far, with 78% exceeding earnings estimates. However, the overall earnings beat is below historical averages.
Beyond tech, other key companies reporting this week include consumer giants like McDonald's, P&G, and Starbucks; energy majors Exxon Mobil and Chevron; Asian banks HSBC and Standard Chartered; and pharmaceutical companies Merck, GSK, and Pfizer.
Boeing's earnings report will be closely watched following recent production issues, while Airbus will be scrutinized for any signs of spillover effects. Carmakers Toyota, BMW, and VW are not expected to fare well after lackluster results from Tesla and other automakers last week.
Adidas, which recently upgraded guidance, is expected to report strong results. In Australia, Rio Tinto reports its first-half financials on Wednesday, while Resmed in the US will release its fourth-quarter figures later this week. Investors will also be watching Albemarle, a US lithium giant, as its earnings are released on Tuesday night.
