This week will see several high-profile companies report their second-quarter earnings results. Key players across various sectors, including streaming giant Netflix (NFLX), semiconductor powerhouse Taiwan Semiconductor Manufacturing Company (TSM), and chip equipment maker ASML Holding (ASML), are all scheduled to unveil their financial performances.
Yahoo Finance markets reporter Josh Schafer breaks down market expectations for these earnings reports, examining what these earnings may reveal about broader market trends (^DJI, ^IXIC, ^GSPC).
For more expert insight and the latest market action, click here to watch this full episode of Catalysts.
This post was written by Angel Smith
Video Transcript
Well, more earnings are expected this week on Wall Street with a preview of what’s to come.
We’ve got our very own Josh Schafer here in studio with us, Josh.
Great to have you.
As always.
Are we still doing the broadening conversation here?
Is that the big narrative heading into earnings, the broadening is definitely the big narrative heading into earnings, right?
I mean, when you take a look at how the markets reacted over the last couple of days, Mattie, we’ve seen significant evidence of that broadening, right?
You’ve had the equal equal weight S and P 500 outperforming the actual S and P 500 the Russell two thousands rallying more than the S and P 500.
So I think that’s sort of the broad trend going into earnings is other than big tech will other sectors show earnings growth and perhaps more earnings growth and earnings surprises than expected.
That was what Callie Cox over at Ritholtz Wealth Management told me this morning is kind of her number one thing she’s watching is are those companies going to beat and surprise outside of the tech sector?
But I wanted to dig in a little bit on just this week and sort of what we’re watching this week.
So we obviously have Netflix coming out Netflix to me in this earnings last couple earning cycles has kind of been a good test for companies that have been outperforming tech companies that have been outperforming, that sort of have high bars and their stock has already run up a lot.
So it’s been interesting just to simply watch how investors react to Netflix’s report.
Netflix can have a great report, but that doesn’t necessarily mean the stock gets bit up and maybe that tells us a little bit about sort of risk appetite with the stock near an all time high.
Are people gonna want to drive it higher?
Perhaps you saw that maybe a little bit with Goldman Sachs this morning.
Pretty good report stocks up about 1.5% the last time I checked, but the stock’s been ripping right over the last month.
So that’s something to kind of think about coming into this.
And then the other two reports that I think are gonna be interesting this week is you’ve got a SML and you have Taiwan Semi.
You remember back to April, both of those companies had disappointing reports by Wall Street Stand, the stocks fell and semiconductors actually got hit.
That was when NVIDIA fell several days in a row.
In April, the market.
It was actually the most recent market bottom and it kind of was this sentiment scare of.
Oh, no.
Is, is the A I narrative in trouble?
Of course, NVIDIA reported and that was not the case.
So, I don’t know, it’ll be interesting to watch.
That’s about Midweek here, I think on Wednesday and it’ll just be interesting to watch if that is something that we sort of get attached to.
Again, that narrative of these early chip companies.
And does that mean something for the A I trade last quarter?
It didn’t end up mattering.
It mattered for a couple of days.
But when the actual real chip company we cared about reported, it didn’t matter.
So I don’t know if that will perhaps play into it this quarter, but it’s certainly in a week of sort of, we’re starting to get a little bit busier, but it’s not that busy with earnings.
I think that might be one of the top things and we already know that NVIDIA has increased their orders for specific parts of what goes into a chip, right.
The wafers, for example.
So that’s definitely a bullish and cater for TS MC moving forward.
And the stock has certainly had a great year.
I’m taking a look now at the stock over the course of the past year here for TS MC, that stock is up over 85%.
So another stock that’s had a good run going into earnings, right.
And sometimes the bar is high is the takeaway.
I think going in earnings, everyone’s talking about that high bar, the bar and the broad name.
Those are the two Bs for you guys.
All right, Josh, thank you so much as always for joining us.
We really do appreciate it.
