Why Big Tech Earnings, October CPI Print Could Be Near-Term Market Drivers: Gene Munster On These 2 Catalysts – Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL)

The US market recovered strongly this week on the back of strong earnings news. Sustaining the rally in the coming weeks will depend largely on two key things: earnings from blue-chip tech stocks and consumer price inflation data in September.

Major technical earnings: Apple Inc. AAPL and Alphabet, Inc. GOOGL GOOG likely to announce strong September quarterly results and optimistic comments about the December quarter, Loup Funds’ Gene Munster tweeted Friday.

Alphabet will publish its third quarter results on Tuesday after the stock market closes. Analysts on average expect the company to report earnings per share or EPS of $1.26 on revenue of $70.68 billion, according to Benzinga Pro data. This compares to a year ago figures of $1.4 and $65.12 billion, respectively.

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Snap, Inc.’s SNAP disappointing results can cause fears about advertising revenue in the search giant. Munster said in another tweet earlier this week that he isn’t too concerned about Alphabet and Metaplatforms, Inc. METAas only some of the headwinds that hit Snap apply to these companies.

Apple will publish its September quarterly results on Thursday after the market closes. The consensus estimates call for earnings per share of $1.27 and revenue of $88.9 billion, up from $1.24 and $83.36 billion, respectively, a year ago.

Since Apple’s high-end iPhone 14 variants outsold the low-end versions, any shortfall in volume could be offset by higher average selling prices of the previous models.

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See Also: Snap Inc Posts Third Quarter Revenue, Earnings Per Share, Announces Share Repurchase, But Stock Is Falling For This Reason

Munster said: Amazon, Inc. AMZN and Meta are a “wild card”. Meta will report after market close on Wednesday and Amazon’s third quarter earnings report is expected after market close on Thursday.

Meta’s third quarter earnings per share are expected to fall from $3.22 to $1.89 and revenue may have fallen from $29.01 billion to $27.41 billion. Amazon is also expected to report a decline in earnings per share from 31 cents to 22 cents, despite a 15.1% increase in revenue to $127.57 billion.

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CPI and the tariff connection: Following the earnings news, market attention will quickly shift to October’s consumer price inflation report, due Nov. 10, Munster said.

In August, the annualized CPI rate was 8.3%, higher than the expected 8%, but lower than 8.5% in July. Core inflation stood at 6.3% and also exceeded the consensus of 6.1%.

The venture capitalist expects inflation to fall to 4 to 5% early next year.

“Then the real work (and pain) of the Fed starts to bring it down to 2%,” he added.

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