Alphabet to kick-start Big Tech earnings :: InvestMacro

• Alphabet ↑ 27% year-to-date

• Pay close attention to updates on AI innovations
  

• Technical levels = $183, $177 & $170 (Alphabet)

• Tesla earnings also in focus, stocks ↑ 26% MTD

The week ahead is packed with high-impact data releases and a slew of corporate earnings from the largest companies in the world:

Monday, 22nd July

• CN50: China loan prime rates
• TWN: Taiwan jobless rate

Tuesday, 23rd July  

• EU50: Eurozone consumer confidence
• SG20: Singapore CPI
• TWN: Taiwan industrial production
• NAS100: Alphabet, Tesla earnings
• FRA40: LVMH earnings

Wednesday, 24th July  

• CAD: Bank of Canada rate decision
• EU50: Eurozone, Germany PMI
• UK100: UK S&P Global PMI
• US30: IBM earnings, US S&P Global PMI
• GER40: Deutsche Bank earnings

Thursday, 25th July

• GER40: Germany IFO business climate
• US500: US Q2 GDP, initial jobless claims
• Bitcoin: Crypto 2024 conference in Nashville

Friday, 26th July

• JP225: Japan Tokyo CPI
• SG20: Singapore industrial production
• USDInd: US June PCE report, University of Michigan consumer sentiment

Although earnings season is in full swing, the excitement levels could jump next week when big tech companies report their results. Expectations remain high around whether these AI giants can keep up the bullish momentum that has propelled US markets to record highs this year.

Two of the so-called “Magnificent” 7 tech titans will be under the spotlight.  Here’s what you need to know.

    1) Alphabet

Google parent company Alphabet reports its second-quarter earnings on Tuesday 23rd July after US markets close.

Its shares have gained 27% in 2024 thanks to investor hype around artificial intelligence translating to big gains in the tech space. Still, investors will be looking for another round of exceptional results to justify the solid gains fuelled by the A.I. frenzy.

Beyond the revenue growth and earnings-per-share, updates on AI innovations will be in focus.

Markets are forecasting a 5.8% move, either Up or Down, for Alphabet stocks post earnings.

Talking technicals, Alphabet stocks have shed roughly 6% this week with prices wobbling above the 50-day SMA. The past few days have been rough for tech stocks due to reports of the US mulling tougher restrictions on trading chips with China.

• A solid breakdown below $177 may open a path towards $170.

• Should the 50-day SMA prove reliable support, prices may retest $183 and $188.50.

 

    2) Tesla

Tesla is also set to release its second-quarter earnings on Tuesday after the close of US trading.

Despite gaining over 25% in July thanks to a strong delivery report, Tesla stocks are just barely in positive territory year-to-date. The company’s revenues, any mention of affordable vehicles, and the full self-driving software update will be scrutinized by investors to gauge its business outlook.

Quarterly revenues are seen slipping to $24.6 billion from $24.9 billion in the prior year, equating to a 1.2% decline.

Markets are forecasting an 8% move, either Up or Down, for Tesla stocks post-earnings.

Looking at the technical picture, Tesla stocks remain in a wide range on the daily charts with support at $232.50 and resistance at $270. Given the potential 8% move either up or down, a breakout could be on the horizon.