Procter & Gamble Co. , Netflix Inc. and Tesla Inc. highlight a busy coming week of earnings as persistent inflation and climbing interest rates stoke talk of a recession.
Consumer healthcare giant Johnson & Johnson, tech bellwether International Business Machines Corp. and the investment bank Goldman Sachs Group Inc. are also slated to release their latest quarterly reports. In addition, investors will hear from airlines, including United Airlines Holdings Inc. and American Airlines Group Inc., railroads such as Union Pacific Corp. , and social-media company Snap Inc.
About 66 companies in the S&P 500 are scheduled to report earnings in the coming week, according to FactSet. Eight members of the Dow Jones Industrial Average, including American Express Co. and Verizon Communications Inc., are on tap to report.
The latest earnings round comes as investors weigh a number of recent economic indicators, from flat retail spending in September to inflation hitting a new four-decade high in the U.S. The Federal Reserve and other central banks have been aggressively raising interest rates to slow price increases.
Large banks last week noted in their quarterly updates that the economic picture remains uncertain, with some indications that consumers are spending at a healthy clip and businesses and households remain in good shape.
JPMorgan Chase & Co. Chief Executive Jamie Dimon said the bank is still bracing for a potential recession, which he views as likely in the next six to nine months. One worrisome sign is that higher prices are straining consumer budgets.
“Money they have in their checking accounts will deplete,” Mr. Dimon said on the earnings call. Volatile oil prices, higher interest and mortgage rates, and the war in Ukraine all pose risks to growth. “It will strain future numbers.”
Companies such as Johnson & Johnson, which reports on Tuesday, and Procter & Gamble, reporting Wednesday, will provide glimpses into how consumers are handling higher prices and whether they are changing purchasing patterns.
Toy and entertainment company Hasbro Inc. will post its quarterly results on Tuesday, with investors hoping to hear about how toy trends are shaping up ahead of the key holiday season.
The snacks and drinks giant PepsiCo Inc.
this past week indicated that demand is holding up well for its brands, which include Doritos chips and its namesake sodas, even as prices are up 17% on average from last year. The company has raised prices in recent weeks again and is monitoring how consumers respond.“Our brands are being stretched to higher price points, and consumers are following us,” PepsiCo. CEO Ramon Laguarta said last week.
On Tuesday, Netflix is scheduled to post its latest results. The streaming giant has reported back-to-back quarters of subscriber losses, but the company in July forecast adding a million new users in its third quarter. Netflix also is preparing to launch a new ad-supported tier as a way to attract new customers and improve its average revenue per user.
Tesla, the world’s biggest electric-vehicle manufacturer, and IBM will report earnings Wednesday. Tesla’s results come as the stock faces pressure after the company reported vehicle deliveries that fell short of Wall Street estimates, and as founder and CEO Elon Musk has renewed plans to buy Twitter Inc.
for $44 billion.Overall, earnings for the S&P 500 companies are on track to rise 1.6% this period, while revenue is projected to grow 8.5%, FactSet said.
Supermarket operator Albertsons Cos. Inc. will report its earnings Tuesday, on the heels of rival Kroger Co. ’s plans to buy the company in one of the biggest deals in the history of the U.S. grocery industry.
Passenger airlines United and American will give a glimpse of the pace of travel demand in recent months, as investors wait on a fuller recovery of business travel.
Rival carrier Delta Air Lines Inc. last week said the outlook for travel remains healthy heading into the winter holidays and that U.S. travelers are still venturing to Europe despite travel disruptions this summer. “As we look into the fourth quarter, there’s nothing that gives me pause to think that this momentum isn’t going to continue,” Delta CEO Ed Bastian said.
Other companies slated to report include Bank of America Corp. and Charles Schwab Corp.
on Monday, private-equity firm Blackstone Inc. on Thursday, and American Express on Friday.Telecommunications companies AT&T Inc. will report its quarterly results on Thursday, followed by Verizon on Friday.
Write to Kathryn Hardison at kathryn.hardison@wsj.com
https://ift.tt/tRbOp5F
Business
Bagikan Berita Ini
0 Response to "Tesla, Netflix Set to Report Earnings as Recession Talk Mounts - The Wall Street Journal"
Post a Comment