Company earnings reports take centre stage this week
Published 20/07/2015 | 02:30
With the situation in Greece now a little more stable, markets will switch focus to earnings in the coming days, with bellwethers including IBM, Apple and Microsoft headlining a big week for results. The equity market has been riding high, led by tech names, and could rise further on the back of a strong set of earnings reports from the big tech companies.
The dollar should be supported by expectations for firmer rate policy, compared with the euro zone and Japan.
At home, the summer lull is beginning to set in. The Dáil has risen for the recess, with the Banking Inquiry dominating the Oireachtas schedule.
CSO data includes trade statistics tomorrow for goods imports and exports, and the wholesale price index on Wednesday.
Apple posts third-quarter results tomorrow. The iPhone maker is expected to report revenue and profit above estimates, helped by strong sales of its flagship phone. Apple sold 61.2 million iPhones in the second quarter.
Investors will look for data on how the Apple Watch performed, after a report last week by research firm Slice Intelligence showed that its sales have dropped since it was launched in April.
Also tomorrow, Microsoft is expected to report fourth-quarter profit and revenue slightly below analyst expectations. The company has been stepping up efforts to arrest falling sales in its core Windows business and shifting focus to cloud-related offerings such as its online Office 365 suite of applications. A strong dollar is also expected to weigh on its results.
Yahoo will also tomorrow post second-quarter results. The online search and advertising company is expected to report earnings slightly above analysts' estimates. Yahoo has been struggling to revive revenue growth with acquisitions and product revamps as its once-hot web portal and email service have lagged those of rivals such as Google and Facebook. All eyes will be on the future of its stake in Yahoo Japan and whether a possible change in US tax regulations is likely to affect its planned spinoff of its stake in Alibaba Group.
From an international point of view, investors will also focus in the coming days on US home sales data and home price index numbers. Financial data firm Markit will release its preliminary Manufacturing Purchasing Managers' Index on Friday.
New US home sales data, also due Friday, is expected show a 0.1pc fall to a seasonally adjusted annual rate of 545,000 units.