Investors will be focused this week on Netflix, Intel and Texas Instruments reports, which may shed light on the Q4 results season. At the same time, some investors are worried about possible dangerous signals that could knock Wall Street’s recent gains down.
The S&P 500 index climbed 3 percent in current month, due to U.S.-China trade war truce, low rates and signs of economies improvement.
Analysts, more or less, expect Q4 earnings for the S&P 500 companies to drop by 0.8 percent, while tech sector earnings should grow by 0.6 percent, according to Refinitiv IBES data.
Analyzing the Q4 company results, investors will pay special attention to forecasts and investment plans against the background of the signing of the “first phase” of the Washington – Beijing trade deal.
Wall Street has gained about 6 percent since the beginning of 2020 thanks to the tech sector, which includes such market giants as Microsoft, Apple and Intel.
Intel and Apple reports will be released on January 23 and 28, respectively. The tech sector is expected to account for almost 22 percent jump of the S&P 500 total operating profit in the last quarter of 2019.
Investors will also assess the Netflix quarterly report, due to be released on Tuesday, to gauge how the new streaming service is competing with Walt Disney Co.
The Philadelphia Semiconductor Index has risen by 30 percent since mid-2019 due to expectations that the semiconductor sector will grow.