What to Expect in the Week Ahead (TSLA, NFLX, and INTC Earnings; Fed's Preferred Inflation Gauge)

Moomoo Breakfast US joined discussion · Jan 21, 2024 11:25

What to Expect in the Week Ahead (TSLA, NFLX, and INTC Earnings; Fed's Preferred Inflation Gauge)

Fourth-quarter earnings season ramps up in the coming week with high-profile names like $Netflix (NFLX.US)$ , $Tesla (TSLA.US)$ and $Intel (INTC.US)$ on the calendar.

Besides Intel, several other top stocks in the semiconductor sector are on the earnings calendar, including chip-equipment firms $ASML Holding (ASML.US)$ , $Lam Research (LRCX.US)$ and $KLA Corp (KLAC.US)$ .

Other themes in the spotlight for the days ahead include airlines, pubs and more retailers, while the Fed's preferred inflation gauge for December will be released.

$Netflix (NFLX.US)$ is among the big news for investors in US stocks, with one set of analysts giving a big thumbs-up ahead of the quarterly update and strong numbers expected.

$Tesla (TSLA.US)$ is expected to post declining earnings for the fourth quarter, with investors also watching out for the impact of Cybertruck and potential updates on the company's Full Self-Driving technology.

$Intel (INTC.US)$ is expected to halt seven straight quarters of declining revenue when it reports Thursday after the close. Analysts polled by Zacks Investment Research predict revenue of $15.14 billion, up 8% year over year. Adjusted profit is expected to jump 340% to 44 cents a share.

Next week will also bring the Fed's preferred inflation gauge for December, which is expected to confirm the recent trend of easing inflation.

Core personal consumption expenditures price index, which excludes volatile food and energy prices, is expected to have ticked up 0.2% for the month, according to economists polled by Dow Jones. That's up from 0.1% the prior month. But year over year, that represents a rise of 3.1%, down from an increase of 3.2% from the year-ago period in the prior month.

An inflation reading in line or lower than expectations would likely be received positively by investors, who expect that further signals of cooling prices will put the Fed on track for rate cuts sooner, rather than later.

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