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Apple, Facebook, and Exxon on the way to take big profit recession test

With the first really fast-paced week of corporate earnings, the S&P 500 seems to be heading for a longer earnings recession, but the reports of three of the big U.S. companies that are largely to blame may help turn numbers through this week. [19659002] Apple Inc.

AAPL, + 1.23%

Exxon Mobil Corp.

XOM, + 0.23%

and Facebook Inc.

FB, + 0.81


are three of more than 150 S&P 500

SPX, + 0.41%

companies to report in the next week, even more than in the crowded week before. The huge profits of these three companies in the first half of the year put them in the top five bearers of the recession, as Apple coped with severe continued sales of the iPhone X, Facebook reported billions of dollars in government fines, and Exxon suffered from a lagging business with chemicals.

See also: The top five companies most responsible for profit recession

Following last week's results, 40% of S&P 500 companies reported calendar revenue for the third quarter, with earnings for this group down 1.66 %. A big turnaround from some of the largest companies in the index can certainly be reversed, but analysts estimate that profits are declining and profits

Apple and Exxon are two of the five Dow Jones Industrial Average

DJIA, + 0.57%

components reporting this week and will be joined by three Dow health-focused components: Walgreens Boots Alliance Inc.

WBA, + 1.78%

on Monday, and drug makers Pfizer Inc.

PFE, + 1.04%

and Merck & Co. Inc.

MRK, -0.39%

on Thursday. Many big names in technology will also be reporting this week, including Alphabet Inc.

GOOGL, + 0.41%

GOOG, + 0.33%

and chip maker Advanced Micro Devices Inc.

AMD, + 3.12%


Here's what to expect next week.

Chip Pictures

AMD and Western Digital Corp.

WDC, + 2.87%

can provide a little more clarity on the semiconductor landscape after mixed signals from chip companies that report profits so far.

For more: Two struggles with technology industries can wreck corporate revenue

AMD's report follows solid results from Intel Corp.

INTC, + 8.10%

which showed a surprising increase in revenue from the data center, which the company partially cost $ 200 million in expenses that were moved in anticipation of future tariffs. While the report initially provided optimism, the one-off fall and pessimism from other chip makers quickly added toast to the chip industry. Investors will look at AMD's report to gain a better read on corporate spending, as well as assess the grip of AMD's own proposals against Intel

Full Preview: AMD hopes new chips help to avoid a big drop in chips

Western Digital saw a profit drop of more than 95% in each of the last two quarters, with analysts calling for a 90% drop this time as the company continues to struggle with memory prices plummeting. AMD was on Tuesday afternoon and WDC followed a day later. Apple Test

Expectations are not particularly high for Apple, which is targeting the company's earnings report on Wednesday afternoon, with analysts calling for roughly equal revenue from a year earlier. The company will be pressured to justify the recent stock rally, which continues to send stocks to new highs, with Apple's quarterly prediction highlighting how the company expects its latest iPhone line to be decisive holiday season. Another area of ​​interest will be Apple's forecasts for its streaming service, Apple TV +, and guidance on how to report this service in the company's financial statements.

Full Review: iPhone Optimism Has Not Changed Apple's Downward Trajectory

More iPhone Directions

Before Apple Shipped Its Numbers, AT&T Inc. Carriers

T, + 0.24%

and T-Mobile US. Inc.

TMUS, + 0.17%

will publish results on Monday morning and afternoon respectively. These reports will come in the shadow of Verizon Communication Inc.

VZ, -0.35%

numbers that showed strong phone add-ons after subscribers over a more promotional wireless environment. AT&T and T-Mobile will show whether they have also benefited from this environment and could also provide quality commentary on the early weeks of iPhone 11.

Not so smooth

Exxon Mobil posted two correct quarters of earnings fell, and analysts expect another Friday morning when the company delivers results. Exxon management already filed an application earlier in October, which hinted at further disappointment as the company cited a fall in oil prices as one of the factors expected to negatively affect profits. Both Exxon and Chevron Corp.

CVX, + 0.93%

will submit full reports on Friday morning.

See also: We're in a recession and it's expected to worsen

Nothing but the "net"

CEO Mark Zuckerberg continues to control political decisions on Facebook, but the company will look to get past some of its latest controversy with its report on Wednesday. With regulatory fines in the rear-view mirror, it is predicted, at least for the time being, that the company will mark its first quarter of earnings growth in December 2018. One topic of interest when calling for the company's profits will be the future of its efforts for Libra cryptocurrency now that they are major players in payments like Mastercard Inc.

MA, + 0.54%

PayPal Holdings Inc.

PYPL, + 2.17%

Visa Inc.

V, + 0.96%

and others dropped out.

See also: Google's cloud business is sky-high, targeting profits

For Alphabet, cost trends will be an area of ​​focus as capital and operating costs increase absolutely. Youssef Squali at SunTrust Robinson Humphrey sees that capital costs are starting to flatten, while operating costs are likely to continue to increase. Alphabet's numbers come out Monday afternoon.


After a blockbuster beginning during Wall Street, Beyond Meat Inc.

BYND, -0.88%

stocks began to calm down, ending last week at less than half their highest price, but they are still trading for more than four times the IPO price . One of the biggest reasons for the optimism is the trial launch of McDonald & # 39; s Corpus-free Burger Companies.

MCD, -0,72%

restaurants, although this may not lead to the permanent placement of puddles in McDonald's restaurants.

Full Preview: McDonald's Trial Launch Does Not Guarantee Meat Burger Menu Place

Other recruits to report this week include Lyft Inc.

LYFT, + 1.88%

on Wednesday and Pinterest Inc.

PINS, + 0.35%

on Thursday. On the other side of the age spectrum, General Electric Co.

GE, + 0.56%

will report on Wednesday.

Healthy Shale

Pfizer and Merck will not be the only pharmaceutical company to report this week after Johnson & Johnson & # 39; s

JNJ, + 0.67%

Retroactive revenues cut off from the opioid settlement, brought the sector back. McKesson Corp. Distributor

MCK, + 0.25%

reported on Wednesday morning and may provide further updates on the opioid site. Amgen Inc.

AMGN, + 0.00%

reports on Tuesday, Bristol-Myers Squibb Co.

BMY, + 1.12%

and Celgene Corp.

CELG, + 0.66%

were both on Thursday, and AbbVie Inc.

ABBV, -0.35%

concludes the week with a report on Friday.

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