The trend of better-than-expected earnings will be put to
the test in the coming week when investors hope Apple can exceed already high
expectations for the tech giant and Facebook reports its first quarterly
earnings according to Reuters.
Apple accounts for a significant proportion of the overall
earnings of Standard & Poor's 500 .SPX components. S&P 500 earnings are
expected to show a rise of 5.7 percent in the second quarter from a year ago.
Excluding the maker of the iPad, the rise is 4.8 percent, according to Thomson
Reuters data. Apple's results, due
Tuesday, could help stocks build on this week's gains and counter investor
worries over the euro zone crisis. More signs of financial stress in Spain on
Friday caused stocks to give back some of the week's increase. The S&P 500
ended 0.4 percent higher for the week.
"Apple can drive the whole (tech) group," said
Daniel Morgan, who helps manage about $3.5 billion at Synovus Trust Company in
Atlanta. "There's a huge
psychological component as it relates directly to Apple. If they just blast
numbers like they did last quarter, then obviously the perception will be
everybody else did pretty good and Apple did fabulous…..."
For more check out http://www.reuters.com/article/2012/07/20/us-usa-stocks-weekahead-idUSBRE86J1FG20120720
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