Earnings season in the US has just reached its peak...
And we are entering the crucial and interesting week for the stock market!
Therefore, it was important for us to prepare 5 important points for you ahead of the coming week:
1️⃣ The market's pulse - surprising numbers from the earnings season ending this week:
According to FactSet data, about 96% of S&P 500 companies have already released their Q1 earnings reports, and of those, about 78% beat earnings per share estimates.
This is not only impressive, it exceeds the 77% average of the last five years, indicating a market that continues to beat expectations despite clouds of uncertainty such as inflation, tariffs, and headwinds of a slowdown.
But the big surprise?
Many companies continue to maintain and even raise their annual guidance, which indicates exceptional operational confidence, especially when recalling that in 2020 during the COVID-19 period, most companies simply refrained from providing any guidance at all.
2️⃣ The peak moment arrives: Nvidia takes center stage
On Wednesday after the market close, Nvidia will release its earnings report, and expectations are sky-high.
Why?
The trade war between the US and China, while still ongoing, is calming down slightly, and this reopens the door to international demand.
Middle Eastern countries are rushing forward with AI infrastructure, which supports an increase in demand for H100 chips and the new Blackwell generation.
Cloud providers like AWS, Azure, and Google Cloud are increasing investments in AI infrastructure, and need more and more chips.
Investors will also look for information on the pace of Blackwell shipments, as well as the impact of new tariffs and regulatory restrictions on guidance.
3️⃣ Not just Nvidia: a carnival of technology and sector earnings reports:
MRVL (Marvell) reports on Thursday: critical for assessing progress in application-specific integrated circuits (ASIC), which are gaining momentum among giants like META and AMZN.
DELL and HPQ stocks, the pair of personal computer giants report this week.
The emphasis: how are they promoting the integration of AI PCs into the traditional market?
AMBA, on the radar of the drone market, which is growing with the integration of AI in detection, analysis, and navigation.
4️⃣ The AI agent revolution, and organizations changing the game
Prominent names in the field:
CRM – Salesforce is no longer 'just CRM'. It leads in developing AI Agents that help employees and customers operate completely autonomously.
VEEV stock – cloud computing solutions for the medical and biotech world.
It is important to understand its power in managing critical life-or-death information.
Cybersecurity stocks ZS, S, OKTA – the new world's cyber guards. Reports that could impact the entire sector.
Stocks like AI and PATH – software for large enterprises focusing on AI and operational automation.
Not just a futuristic story, this is a practice already being implemented.
5️⃣ The consumer sector: a reality check for the American consumer
This week will see numerous reports from retail giants, companies such as - COST (Costco) BBY (Best Buy) M (Macy's) KSS (Kohl's) ULTA (Ulta) and more...
What will interest us?
These earnings data are a true barometer for private spending in the US, and they can hint at whether the consumer is starting to 'turn off engines' or still maintaining strong purchasing power...
We are monitoring!