With the volatile US earnings season coming next week, investors are relieved that, so far, no major warnings have been given by US companies. On Friday, the three major U.S. stock indices, the S&P 500, Dow Jones and NASDAQ, each closed at about 3% of July's all-time highs, driven by reports. positive income.
This clearly shows the resilience of the US stock market, although there are still concerns about slowing growth due to the US-China trade war. If U.S. companies continue to beat expectations and the United States and China move closer to resolving their trade-related disputes, a new wave of optimism could fuel a strong uptrend. Other strong in the market.
Here are the top three stocks to watch for stronger signs of recovery from consumption, industry and technology:
1. McDonald's Corporation (NYSE:MCD)
McDonald's, (NYSE: MCD), the global fast food chain operator and franchise, is expected to report its third-quarter earnings on Tuesday, October 22, before the market opens. The company is forecast to report US $ 2.21 of earnings per share on revenue of US $ 5.49 billion, according to analysts' forecasts.
After a strong uptrend in the past year, McDonald's shares are showing signs of peaking. After finishing the week at $ 208.50, the restaurant operator brought in a small negative return in the past three months as investors stood outside.
Despite this constant profitability, MCD's recent earnings performance provides solid evidence that the company's technological innovation is advancing at a rapid pace. In the quarter ending in June, the fast food chain announced the fastest global sales increase in seven years.
Innovations like all-day breakfast, including McMuffin and new products like donut sticks are helping to bring customers back. If the company continues to show that it succeeds in increasing customer flow at its stores while investing in new technologies continues to pay off, we will see the momentum rise once again. fast.
2. Intel Corporation (NASDAQ:INTC)
The world's largest chip maker, Intel (NASDAQ: INTC), will also be monitored closely when it reports third-quarter earnings on Thursday, October 24, after the market closes. The tech giant is expected to report US $ 1.23 of earnings per share on revenue of US $ 18.02 billion, analysts.
In its final report, Intel was able to surpass expectations in both sales and profitability as well as make an optimistic third-quarter forecast, showing that the chipmaker has overcome the industry-wide decline. due to China-US trade disputes. In the second quarter, Intel benefited from increased demand for PCs and higher server chip prices.
Investors will be eager to see if the company can maintain the surge in demand in the third quarter. They will want to know if the company has a positive outlook for the rest of the year.
Intel shares, closing at $ 51.36 on Friday, underperformed the benchmark S&P 500 this year, amid concerns chipmakers will find it difficult to improve sales if fighting. trade dispute escalates and China, a major semiconductor market, faces higher taxes. Earnings earnings next week can help eliminate some of that instability.
3. Ford (NYSE:F)
Ford Motor Company (NYSE:F) will release its third-quarter earnings on Wednesday, October 23, after the market closes amid concerns that one of the largest U.S. carmakers is facing. with obstacles in restoring demand for its cars. Analysts, forecast that the company will report $ 0.26 profit per share on revenue of $ 36.86 billion
The past few years have been tough for Ford (NYSE:F). After years of increased sales, backed by a global economy and strong consumer demand, Ford is currently facing difficulties: it is restructuring $ 11 billion after Its net income dropped by more than half last year when demand for cars slowed.
The turning point will involve cutting thousands of jobs, closing factories overseas and building capacity for electric and driverless cars. When Ford (NYSE:F) implemented this plan, its stock was under pressure, trading below $ 10 since mid-July. Shares rose 2% on Friday, to close at $ 9.29 a share.