US Market Week Ahead: Disney, Uber and Alibaba Among Heavyweights to Report Earnings with Various Economic Data to Watch

February 5, 2024

As most of the “Magnificent Seven” (Microsoft, Meta Platforms, Amazon, Apple, Alphabet, Tesla and NVIDIA) tech companies have reported strong earnings, the focus now shift towards the next lineup of heavy hitters in the US market.

The week ahead is packed with notable earnings reports and significant economic data releases that could sway investor sentiment and market direction.

Earnings on the Horizon

Investors are bracing for another eventful week as several major companies are set to report their quarterly earnings. The Walt Disney Co. (NYSE: DIS) is up for a spotlight performance with its earnings call scheduled after the market closes on Wednesday, February 7th. Analysts are predicting earnings per share (EPS) of $1.04 and revenues to touch the $23.8B mark for the December quarter. However, there is a cloud of concern regarding potential declines in ad revenue and linear networks revenue, which are projected to drop significantly.

Uber Technologies Inc (NYSE: UBER) will step onto the earnings stage before the market opens on the same Wednesday. Expectations, shaped by Bloomberg’s analyst consensus, suggest a 42% decline in EPS year-over-year (yoy) to $0.17 per share. Despite this anticipated drop, the market sentiment remains bullish on Uber’s continued dominance and its growth trajectory, propelled by robust customer mobility and delivery services.

Alibaba Group Holdings Limited (NYSE: BABA) (SEHK: 9988) is another titan expected to unveil its fiscal third-quarter earnings before the bell on February 7th. With an anticipated EPS of $2.65 and revenues of $36.44 billion, all eyes will be on the new CEO, Eddie Wu, to steer the company back to profitability and growth, especially through key platforms like Alibaba Cloud, Taobao, and Tmall.

Economic Data to Guide Markets

Turning to the economic calendar, a series of data releases will offer fresh insights into the health of the US economy. The ISM non-manufacturing PMI is forecasted to show an uptick to 52.0 in January, potentially reinforcing the narrative of a resilient services sector.

Moreover, the Labor Department’s jobless claims report, due out on Thursday, is expected to reveal a slight decrease in initial claims, adding to the optimism surrounding the labor market’s robustness.

Trade deficit figures, scheduled for release on Wednesday, could confirm a slight improvement in international trade, with forecasts indicating a narrowing deficit. Additionally, wholesale inventory data, due on Thursday, will provide clues about the balance between supply and demand in the economy.

Sector Performance and Market Outlook

Investors will be watching these earnings and economic indicators closely, as they could impact sector performances and broader market trends. With the US earnings season in full swing, the outcomes of these reports could either fuel market rallies or prompt corrections, depending on whether companies meet, exceed, or fall short of expectations.

In conclusion, the week ahead promises a mix of challenges and opportunities for the US market. As investors parse through earnings reports and economic data, the market will find its rhythm, responding to the narratives shaped by corporate performance and economic health.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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