A week dominated by earnings reports - Weekly Review, July 27-31

A week dominated by earnings reports - Weekly Review, July 27-31

Markets set aside any other event and focused on earnings reports.

Monday: The international markets were mixed, as the United States and Asia focused on the potential stimulus package proposed by the US. USA30 and USA500 added 0.43%, and 0.74%, respectively. HongKong45 gained 0.27%, while Australia200 settled 0.06% higher.

In Europe, the UK imposed quarantine on people returning from Spain as the number of infections continued to increase. UK100 slipped 0.5%, while Spain35 lost 1.2%.

MasterCard and Visa are looking to expand their cryptocurrency programs and blockchain technologies. The crypto services are slowly becoming harder to ignore, and a future full adoption could be possible. MasterCard gained 0.48%, while Visa traded 0.69% higher in pre-market trading.

Hasbro missed the Q2 expectations, posting a net loss of $33.9 million, and revenue of $860.3 million. After the report, the stock dropped by nearly 11%.

Moderna secured a $472 million funding from the US government to develop a COVID-19 vaccine. It is the second funding that Moderna receives from the American government. After the news, the stock price gained roughly 11%.

Giant Google was under scrutiny over data privacy issues by the Australian Competition and Consumer Commission (ACCC). According to the documents filed, Google was able to link users' browsing behaviors with their names and identities, and the consent to use the clients' data wasn't straight-forward. After the news, the stock price fell by 0.56%.

Tuesday: The international benchmarks dove after earnings report disappointed the investors. TECH100 was down 1.27%, Germany30 added 0.2%, and HongKong45 gained 0.32%.

The Dollar Index reached the lowest point in two years – 93.42.

The second quarter wasn’t too happy for McDonald’s, as, due to the pandemic, it lost a third of its Q2 revenue. This past quarter revenue came in at $3.76 billion. The sales sank by 23.9%. After the report, the stock price fell by 2.1%.

Pfizer lost 11% in revenue, with numbers coming in at $11.80 billion. Although it is developing a COVID-19 vaccine, the stock price fell 4.2% since the beginning of the year. After the report, it gained 3.4%.

Google extends work from home until June 30, 2021. Moreover, it plans to unite two continents by 2022 by building an undersea fiber-optic cable made to link the US, the UK, and Spain.

3M posted weaker-than-expected earnings due to the pandemic's impact on sales and profit. Sales dropped 12% to $7.18 billion. Its revenue slipped by 11.9% to $7.2 billion. After the figures came in, the stock price slid 2.2%.

Wednesday: The two-day FED meeting brought good news, making the indices close higher. The American benchmarks gained up to 1.35%. Australia200 rose 0.7%. GBP/USD closed at a four-month high of $1.3013. AUD/USD reached a high of 0.7194 – a level unseen since April 2019.

Twitter, Facebook, and YouTube came into the spotlight as they took down a clip that was spreading false information regarding COVID-19. President Trump and his son Trump Jr. reposted versions of the clip promoting chloroquine and hydroxychloroquine as viable cures in treating COVID-19. The stock price of Facebook fell by 1.45%, and Twitter's lost 0.65%.

Starbucks’ revenue fell by 38% to $4.2 billion in Q2, while the same-stores sales dropped by 40%. The stock price slid 2.4% after the report.

Barclays posted a net profit of GBP90 million, and revenue of GBP5.34 billion, topping the GBP5.27 billion expected. After the report, the stock price lost 4%.

General Motors was hit by the pandemic, as its Q2 earnings showed. Its revenue dropped by more than 53% to $16.78 billion. Though it posted lower than expected earnings, as investors were waiting for the report, the stock price added 4%.

Visa's earnings were in line with the expectations, posting a net income of $2.4 billion and $4.84 billion worth of revenue. In the past quarter, shares gained 15%.

Thursday and Friday: In the United States, the Bureau of Economic Analysis posted a quarterly economic contraction of 32.9%. Gold traded at $1,980 per ounce, reaching an all-time high. Oil lost 3.3% to $39.92 a barrel.

PayPal is on an upward trend, as it posted earnings that exceeded the expectations. It posted a net income of $1.53 billion, and revenue of $5.26 billion, beating the $4.99 billion consensus. Also, in the past quarter, it added 21.3 million active accounts. In the past three months, PayPal stock price added 49%.

The German economy contracted by 10.1% in Q2, marking the worst quarterly deterioration since 1970. Moreover, the unemployment rate reached 6.4% after adjustment. After the report, Germany30 lost 2.5%.

The US weekly unemployment Claims painted a grim picture of how the US is handling the new wave of infections. Last week’s figures came in at 1.1434 million. At a quarterly level, more than 53 million people lost their jobs due to the pandemic.

Apple posted revenues of $59.7 billion and a net income of $11.25 billion. The results showed that the American giant faced the pandemic bravely. In after-market trading, the stock price gained 5.8%.

Amazon posted better than expected earnings. The revenue was at $88.9 billion, while the operating cash flow reached $51.2 billion – a 42% increase since last year’s numbers.

Alphabet posted its first-ever revenue drop. The figures came in 2% lower at $38.297 billion. The EPS was $10.13, and the net income came in at $6.959 billion. In after-hours trading, the stock gained 0.56%.

If you want to stay updated with the latest news, check-out CAPEX.com!

Sources: finance.yahoo.com, marketwatch.com, investing.com, reuters.com


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