Microsoft and Alphabet Lead Tech Earnings as Bitcoin Soars and PMI Data Points to Economic Slowdown
Tech Giants Microsoft and Alphabet Lead Earnings Deluge
The week kicks off with a deluge of major tech earnings. Microsoft and Google-parent Alphabet are set to release their results after the closing bell today.
Microsoft, which recently closed its deal for Activision Blizzard, is expected to report earnings per share of $2.65 on revenue of $54.5 billion. Investors will be keen to hear updates on the company’s artificial intelligence initiatives and its cloud computing unit, which received a boost with a $3.2 billion investment in Australia.
Alphabet, on the other hand, is expected to offer earnings of $1.45 per share on revenue of $75.9 billion. The focus will be on the digital advertising environment and the growth of its cloud division.
Futures Edge Higher Ahead of Key Tech Earnings
U.S. stock futures are slightly up as investors eagerly await earnings reports from influential tech companies.
At 04:40 ET (08:40 GMT), the S&P 500 futures climbed 30 points or 0.1%, Dow Jones futures rose by 8 points or 0.2%, and Nasdaq futures climbed by 55 points or 0.4%.
While the benchmark S&P 500 traded above the 5% level before falling back, the earnings season is expected to be strong, with around 30% of S&P 500 companies reporting this week. So far, 75% of companies that have reported earnings have exceeded analysts’ expectations.
Bitcoin Soars on ETF Speculation
Bitcoin, the largest cryptocurrency, continues its surge on speculation of an imminent exchange-traded fund (ETF) approval.
By 04:40 ET, Bitcoin soared 11% to $34,166, reaching its highest level since May 2022. The recent court ruling against the U.S. Securities and Exchange Commission’s rejection of an ETF application has fueled expectations of approval. Trillions of dollars in institutional money are waiting to enter Bitcoin once an ETF is approved.
PMI Data Points to Economic Slowdown
Flash PMI data reveals a potential economic slowdown in Europe and the United States, adding uncertainty to upcoming central bank meetings.
In Europe, the German economy contracted for a fourth straight month, indicating a recession. The Eurozone also experienced a decline in business activity, with the Composite PMI falling to its lowest reading since November 2020.
With crude prices on the rise, economic growth could slow as we enter the fourth quarter.
Crude Edges Lower with Gaza in Spotlight
Crude prices are slightly lower as the market remains focused on the Israel-Hamas conflict and its potential impact on oil exports.
The benchmarks dropped around 3% on Monday as hopes for deescalation were overshadowed by continued bombardment in Gaza. The situation remains fluid, leaving the market divided on the future direction of the conflict.
The American Petroleum Institute will release its latest estimate of U.S. inventories later today, providing further insight into the state of the oil market.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or an endorsement of any product, service, or platform. Investing in cryptocurrencies and other speculative assets involves substantial risk, and investors should do their own research and consult with a qualified professional.
