Big Tech companies Alphabet (GOOG, GOOGL) and Tesla (TSLA) highlight this week’s earnings calendar as investors remain torn about huge capex commitments for the AI build-out.
US chipmaker Intel (INTC) will also offer crucial updates on artificial intelligence demand, while IBM (IBM) will provide a fuller picture of its Q2 results after its stock plunged on pre-announced earnings. Rounding out the docket this week are reports from General Motors (GM), AMC Entertainment Holdings (AMC), GE Vernova (GEV), AT&T (T), Lockheed Martin (LMT), and American Express (AXP).
The second quarter reporting season kicked off last week with a wave of bank earnings from JPMorgan (JPM), Morgan Stanley (MS), Citigroup (C), and their Wall Street peers. While the banks reported robust profits, Netflix’s (NFLX) earnings disappointed as its forecast fell short of estimates.
Overall, it’s shaping up to be a strong earnings season for the S&P 500 (^GSPC). According to FactSet data, analysts estimate the year-over-year S&P 500 earnings growth rate for the second quarter will be 24.7% — above the five-year average of 16.4% and the 10-year average of 10.3%.
If that holds, it will mark the second consecutive quarter of earnings growth above 20% for the index and the seventh straight quarter of double-digit growth.
