This week focuses on the earnings reports of major U.S. corporations such as Tesla, Alphabet, Intel, Verizon, and Coca-Cola.
In addition to revenue results, the market is also monitoring economic data on real estate and monetary policy to assess financial trends in Q2 and the next market direction.
MAIN CONTENT
The Q2 financial reports from Tesla, Alphabet, Intel, and many key U.S. companies will influence market trends.
The lack of buying power in the U.S. housing market is reflected in data on home sales and new construction starts.
European interest rate policy remains stable, while Fed officials and the CEO of OpenAI will make important statements.
Why are the financial reports of Tesla, Alphabet, and Intel of particular interest?
The results announced by Tesla, Alphabet, and Intel for Q2 are seen as important indicators of the economic situation and technology trends, particularly in the fields of AI and chip manufacturing.
For example, Tesla is under pressure from declining deliveries in Europe, with its stock price dropping nearly 20% this year and the departure of leaders, leading UBS to assess the stock as overvalued. Meanwhile, Alphabet is focused on ramping up AI, expected to drive long-term growth. Intel is in the process of transitioning its chip technology, with CEO Lip-Bu Tan possibly adjusting assets to adapt, but this also carries risks. UBS maintains a ‘hold’ rating with a target price around $19-25 per share.
Intel's technology transition is a risky move but could provide competitive advantages if successful.
Philip Newman, Chip Industry Analyst, UBS, 07/2024
How is the U.S. housing market evolving with the latest data?
Data from May and forecasts for June show that existing home sales in the United States remain at record low levels due to high interest rates and difficult home buying costs.
The National Association of Realtors in the U.S. will announce the existing home sales data for June, while the Department of Commerce will release a report on new housing starts. Both of these data points will be closely monitored by analysts to determine signs of recovery or continued weakness in the real estate market, affecting the entire economy and related industries.
How is European monetary policy maintained and what is its impact?
The European Central Bank is expected to keep interest rates at 2% in this week's meeting, despite tariff threats from the U.S.
ECB President Christine Lagarde and colleagues are expected to maintain the current policy, but if the U.S. does impose a 30% import tax on EU goods, the ECB may lower interest rates to support the economy. This meeting takes place before the ECB's summer break from mid-September.
The ECB is committed to striving to maintain financial stability in the context of global trade and economic uncertainty.
Christine Lagarde, President of the European Central Bank, 07/2024
Besides earnings results and monetary policy, which events are noteworthy this week?
Reports on initial jobless claims and durable goods orders in the United States will provide further insight into labor and production conditions. Fed Chair Jerome Powell and member Michelle Bowman will speak at a banking conference in Washington D.C., with high expectations for significant economic remarks despite being in a period of restricted policy statements.
OpenAI CEO Sam Altman will also speak for the first time at a Fed event, attracting the attention of financial and tech professionals.
Real-world examples of tech stock valuation adjustments in Q2 2024
UBS Rating Target Price (USD) Notable Developments Tesla Hold/Reduce — Down 20% due to declining European deliveries, leadership departures Alphabet Hold — Strong investment in AI, long-term growth expectations Intel Hold 19 – 25 Chip technology transition, major layoffs
Frequently Asked Questions
How do Q2 financial reports affect the stock market?
The Q2 earnings results of major corporations like Tesla and Alphabet often have a significant impact on market volatility as they reflect operational efficiency and growth forecasts.
Why is the U.S. housing market still weak despite a slight recovery in transactions?
High interest rates combined with high housing prices make housing access difficult, reducing demand despite slight technical signals of an increase in transactions.
How will the ECB respond if the U.S. imposes high tariffs on EU goods?
The ECB may maintain current interest rates or lower them to support economic growth, depending on the extent of the impact from U.S. tariffs.
What does the CEO of OpenAI's speech at the Fed event mean?
This is the first time the CEO of OpenAI has spoken before the Fed, opening up opportunities to discuss the impact of AI technology on financial and macroeconomic policy.
What is noteworthy about Intel's current situation?
Intel is in the process of transitioning its chip manufacturing technology and reducing staff, marking a significant turning point for more effective competition in the global chip market.
Source: https://tintucbitcoin.com/loi-nhuan-q2-chi-so-nao-dang-chu-y/
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