Facebook, Amazon and Alphabet take centre stage on Wall Street
By Noel Randewich SAN FRANCISCO (Reuters) - The so-called FANG stocks take centre stage on Wall Street this week, with Amazon , Alphabet and Facebook set to report as the S&P 500 approaches a record high.
By Noel Randewich
SAN FRANCISCO (Reuters) - The so-called FANG stocks take centre stage on Wall Street this week, with Amazon
The group of high-growth stocks that supercharged the S&P 500's decade-long rally in recent years has had mixed results in 2019, with Facebook and Amazon dramatically outperforming the broader market, while Netflix
Facebook reports on Wednesday after the bell, with Amazon and Alphabet on Thursday, all together accounting for 9% of the S&P 500's stock market value. Overall, companies reporting this week account for about 30% of the S&P 500's value.
Investors' reactions to those reports could affect broader market sentiment as the S&P 500 trades about 1% below its July 12 record high close, with investors widely expecting the Fed to cut interest rates later this month. The benchmark index was up 0.3% on Monday.
"I’m more concerned about how the reports from the likes of Alphabet and Facebook will affect my other tech stocks, because they suck the oxygen out of the room every time something happens to them," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, which owns shares of Amazon and Alphabet.
Also reporting this week are chipmakers Intel
Netflix has tumbled 14% since Wednesday, when it reported weaker-than-expected subscriber growth. Facing an approaching wave of competition, the video streaming service is up 18% year to date, just below the S&P 500's 19% gain. Alphabet is up just 8% in 2019, while Amazon has surged 31%.
When Facebook reports, investors will focus on how the leading social network is responding to regulatory scrutiny of its handling of users' personal data, and how planned measures including a "Clear History" option may hurt advertising revenue.
Reflecting improved expectations, Facebook has surged 51% in 2019 and is 7% short of the record high it set a year ago, just before it warned of a multi-year squeeze on its business margins, sending its stock into months of decline.
Facebook’s June-quarter revenue is seen jumping 25% to $16.5 billion, with net income up 5% to $5.4 billion, equivalent to $1.87 per share, according to Refinitiv.
Analysts expect Alphabet’s quarterly revenue to climb 17% to $38.2 billion, with net income falling 4% to $7.9 billion. Analysts expect Amazon’s quarterly revenue to grow by 18% to $62.5 billion, with net income growing 11% to $2.82 billion.
(Reporting by Noel Randewich, additional reporting by Amy Caren Daniel in Bengaluru; Editing by Nick Zieminski)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.