Today’s episode of Full Court Finance at Zacks breaks down the market heading into the last week of July and will feature earnings reports from some of the biggest names in tech. The episode then dives into three of the most notable stocks – Microsoft (MSFT – Free Report), Apple (AAPL – Free Report) and Meta Platform (META – Free Report) – before their financial releases to see if it would be time to start long-term positions in stocks.
Wall Street did not react significantly to June’s hot CPI print, which could mean that the Fed’s increased tightening efforts are more priced in to stocks than some assume. The market will get further clarity on the Fed’s rate hike plans after its FOMC meeting concludes on July 27.
The last week of July is also filled with earnings reports from hundreds of companies. The stock list includes everyone from McDonald’s to GE and Pfizer. The stars of the show, however, are likely to be the big tech stocks, given their huge impact on S&P 500 earnings and major indexes.
The market was mixed on early reports from some tech stocks. Netflix and Tesla climbed on the back of slightly better-than-expected results that could show a willingness to snack on some of those downed names. But IBM fell as Wall Street weighed the impact the strong US dollar will have on the company, and Snap’s disappointing quarter sent it down more than 35% on Friday.
The first name we explore is Microsoft (MSFT – Free Report) ahead of its fourth quarter FY22 financial release on Tuesday, July 26. Microsoft has already warned Wall Street that the strength of the US dollar is about to negatively impact its revenues and results. Recent news that it is removing open job postings highlights the impending economic downturn.
Short-term concerns and Microsoft The recession could provide an opportunity to start a position in the diversified tech powerhouse that completely recalibrated its long-term trajectory when it entered the now vital and massive cloud computing market. That said, it might be best to wait for his guidance and see how Wall Street reacts.
Apple Inc. (AAPL – Free Report) releases its FY22 third quarter results on Thursday, July 28. AAPL has jumped more than 10% since mid-June as more investors start snapping up the stock given its ability to consistently roll out deals its clientele apparently have to buy into despite falling-competition by prices. Basically, Apple has transformed itself far beyond an iPhone company and is making money from its 825 million paid subscriptions on nearly 2 billion active devices.
Last up is Facebook’s parent meta-platforms (META – Free report) which publishes its results on Wednesday, July 27. META has been hammered amid concerns over Apple’s privacy changes, its metaverse bet, and more. The stock fell again on Friday after Snap’s disappointing performance and is down more than 55% from its highs. The fall, coupled with it still being a money-printing machine, brings it 30% discount to the Zacks Tech sector and 18% below the S&P 500 at 13. .5X forward earnings.