Are you ready for another packed week of company earnings? Yet again, the focus is on the major Wall Street banks. We got our first glimpse into US bank figures last week, and now we’ve got the next batch coming up. We’ll also get results from the first few tech companies of the season, including Netflix and Dutch chip company ASML.
US Banks in the spotlight
Goldman Sachs: On Tuesday, January 18th, Goldman Sachs will report its quarterly numbers. Like most industries, the banks have been affected by the coronavirus crisis and inflation, as well as Federal Reserve policy, such as lower interest rates. Goldman Sachs shares have been on a downslide since November, but the start of the year was quite positive. Let’s see what the numbers bring for 2022.
Bank of America: Before the market opens on Wednesday, January 19th, Bank of America will reveal its quarterly figures and present its forecast for the new year. The bank had a strong year in 2021, with its share price increasing by 50%. Analysts at Barclays recently added the stock to its ‘Top Picks 2022’ list.
Morgan Stanley will also report its figures on Wednesday, January 19th. But there hasn’t been much good news lately. In fact, the bank had to pay a fine of $60 million due to accidentally leaking clients’ personal information on two occasions. Investors are hoping the penalty is rather small compared to the bank’s overall profits.
You should note that most of these major US banks are listed in the S&P 500, which is the benchmark US index. With BUX Zero, you can invest in an ETF that tracks this index: the S&P 500 Index ETF (Vanguard). You can also set up a recurring investment in this ETF and others using our Savings Plan feature.
Netflix and ASML: what to expect?
It’s not just the banks that will set the tone this week. The tech sector is also gearing up to report its figures with ASML due on Wednesday, January 19th and the streaming giant Netflix on Thursday, January 20th.
At Netflix, the most important question is whether they can hold onto the momentum they got from the pandemic. Analysts are expecting earnings-per-share to come in at $0.82 and total revenue of $7.72 billion.
For Netflix, however, the most important figure is the number of subscribers. After a recent lull, will the company return to stronger subscriber growth? For the fourth quarter, Netflix expects paid subscriptions to increase by 9% (year-over-year) to 222.06 million.
At ASML, the global semiconductor shortage will, of course, have an impact. The issue is still ongoing in international supply chains (read more about supply chain trouble in our recent interview with BlackRock). ASML produces the machines and technology used to make microchips and is one of the few companies that actually benefit from the global chip crisis. ASML shares rose by about 60% last year. Analysts expect earnings-per-share to come in at €3.72, with revenue of approximately €5.1 billion for the past quarter.
Keep an eye on your portfolio
Earnings season and company results have a big impact on the overall US and European markets. If you want to learn how to capitalise on these quarterly events, read this article on how to get the most out of the earnings season.
Economic and earnings calendar
Monday – Industrial production from China, GDP from Germany.
Tuesday – GDP from China, Bank of Japan interest rate decision, labour market data from Great Britain, quarterly figures from Goldman Sachs.
Thursday – Bank of China interest rate decision, producer price index from Germany, consumer price index (CPI) from the eurozone, initial jobless claims from the USA, quarterly figures from Netflix.
Friday – UK retail sales, Schlumberger quarterly results.
We’ll be back next week with another edition of the BUX Breakdown. In the meantime, have a great week on the markets!
The BUX Breakdown was written by Marvin Engel.
All views, opinions, and analyses in this article should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.