This earnings season has seen tech so far seen tech outperform with the street buying up shares of the FAANG stocks. Overall technology earnings reports have impressed with a couple of exceptions from Intel Corporation and International Business Machines Corporation.
On Monday, Google parent company Alphabet Inc. reports after the close. Expectations are for a drop in earnings per share after taking a $1.7 billion antitrust fine from the EU. Revenues are expected to remain strong with a slightly over 21% annual gain to over $30 billion. Results from Facebook lead many analysts to believe Google should see strong mobile ads.
Apple delivers their results after the Tuesday close and investors will focus on services growth. At the beginning of the year, the iPhone maker delivered a warning that triggered the low for tech stocks. Wall Street is looking for clarity on iPhone weakness in China and if services business growth can continue to alleviate the falling phone sales. The consensus is for EPS to plummet to $2.37 and revenues to slide over 5% to $57 billion.
The Nasdaq finished last week on a record high and the streak can continue if we see strong results from both Alphabet and Apple. The focus however will not just fall on earnings as a Fed rate decision is expected in the middle of the week and traders will look to see if China and US can keep things constructive on the trade front.