The week begins with significant earnings reports from major tech companies, including Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), and Tesla (TSLA). Notably, Apple is set to release its fiscal Q1 results on Thursday, expecting a 10.4% increase in earnings and 10.6% rise in revenues, despite being the worst-performing stock among the “Magnificent 7” this year.
Additionally, Durable Goods Orders for November reported a rise of 5.3%, surpassing expectations by 80 basis points and marking a rebound from the -2.1% recorded in October. Excluding transportation orders, the increase was 0.5%, with non-defense orders (excluding aircraft) up 0.7%. These numbers may influence expectations around potential Fed rate cuts, as they reflect strengthening economic activity.
This week also features earnings reports from Microsoft and Meta on Wednesday, with Microsoft anticipating a 20% increase in earnings and 15% rise in revenues. Meta expects 20% growth in revenues but only a 1.6% increase in earnings. Tesla, on the other hand, is forecasted to see declines of 38.4% in earnings and 2.3% in revenues as it continues to face challenges.
