Supersized Earnings with McDonald's
Market Movers
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PINS | Pinterest Inc | ▲ 19.08% | 40.00
NWL | Newell Brands | ▼ -26.42% | 7.13
News Highlights
The Week Ahead
This week, investors are focusing on key economic data releases. The Consumer Price Index (CPI) for January is set to be released on Wednesday, offering insights into inflation trends. On Thursday, the Producer Price Index (PPI) will provide a perspective on wholesale inflation. Finally, Friday’s retail sales figures will highlight consumer spending trends.
Key Corporate Earnings
Investors will closely monitor reports from McDonald’s (MCD), Coca-Cola (KO), and Shopify (SHOP) for insights into consumer sentiment. Tech sector updates will come from Cisco (CSCO) and Applied Materials (AMAT), while Moderna (MRNA), Vertex (VRTX), Robinhood (HOOD), and Coinbase (COIN) will offer a window into healthcare, fintech, and crypto trends.
McDonald's Earnings Outlook
McDonald's is set to announce earnings, with analysts expecting an EPS of $2.83 and revenue of $6.44 billion. The company has faced a food safety issue that impacted sales, leading to a 1% decline in overall revenue. This marks the third consecutive quarter of sales decline. McDonald's stock has risen only 2% year-to-date, with a current valuation of $211 billion.
New Tariffs on Steel and Aluminium Imports
The U.S. government has imposed a 25% tariff on steel and aluminium imports, aiming to match tariffs set by other countries on U.S. goods. The move is expected to impact steel and aluminium producers, manufacturing industries, and major U.S. trading partners, including Canada and Mexico.
Potential Market Impact
Higher Costs: The tariffs could lead to increased prices for goods reliant on steel and aluminium.
Trade Tensions: Retaliatory tariffs from other countries may escalate trade disputes.
Stock Market Reactions: Investors should monitor steel and aluminium stocks as the market digests this policy shift.
Movers & Shakers
BP (BP.L) ▲ 1.21% | 432.94
BP will release its Q4 and full-year 2024 earnings on Tuesday, February 11. Analysts expect a decline in profits due to weaker oil and gas production and lower refining margins. The company has postponed its investor day to February 26 in London.
Barclays (BARC.L) ▼ -0.78% | 304.59
Barclays will announce its full-year 2024 earnings on Thursday, February 13. The bank is expected to report a profit increase to £8.1 billion, up from £6.6 billion in 2023. However, potential liabilities from past motor finance operations may impact results.
Airbnb (ABNB) ▲ 1.82% | 134.98
Airbnb is set to report Q4 2024 earnings on Thursday, February 13. Analysts predict a 17.1% decline in EPS, despite a 9.2% revenue increase to $2.42 billion. The stock has underperformed compared to broader market trends.
Lyft (LYFT) ▲ 0.71% | 14.17
Lyft is scheduled to release its Q4 2024 results on Tuesday, February 11. Analysts forecast EPS of $0.23, reflecting a 21.1% increase from last year, with revenue expected to rise 26.5% to $1.55 billion.
What to Watch
U.S. Consumer Price Index (CPI) Release
The Bureau of Labor Statistics will publish January’s CPI data at 8:30 AM Eastern Time. Analysts expect a 2.9% year-over-year increase, aligning with December’s figures.
Cisco Systems Q2 Earnings Report
Cisco will release its Q2 fiscal year 2025 earnings after market close, with a conference call at 4:30 PM Eastern Time. The company projects revenue between $13.75 billion and $13.95 billion, with non-GAAP EPS between $0.89 and $0.91.
UK Gross Domestic Product (GDP) Q4 Report
The UK’s Office for National Statistics will publish its preliminary Q4 GDP estimate. Economists predict a 1% year-over-year growth with flat quarter-over-quarter performance, indicating potential economic stagnation.
Prices and figures were correct at the time of writing.
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