Stocks have been roughly flat final week as buyers processed information about COVID-19 outbreaks together with a flood of usually robust second-quarter earnings experiences. Each the Dow Jones Industrial Common (DJINDICES:^DJI) and the S&P 500 (SNPINDEX:^SPX) fell by lower than 0.75% to stay in modestly destructive territory for the yr.
Tons of of stocks will announce earnings outcomes over the subsequent few buying and selling days, together with Fb (NASDAQ:FB), Boyd Gaming (NYSE:BYD), and Anheuser-Busch InBev (NYSE:BUD). Under we’ll check out the important thing developments that may ship these investments shifting this week.
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Fb will announce its second-quarter outcomes on Wednesday afternoon, and buyers predict excellent news from the social media titan. Person metrics have been robust at its final outing, with an 11% improve in each day scrollers serving to push income up 18%. Web revenue greater than doubled to a head-turning $4.9 billion.
The second quarter began on April 1, which implies it captures essentially the most dramatic affect so far from the coronavirus pandemic. The worldwide well being scare initially pushed promoting income down, administration mentioned in late April, however buyers predict to see proof of a fast rebound this week.
Within the meantime, search for Fb to disclose growing engagement ranges as extra individuals turned to their smartphones for leisure, connection, and information throughout shelter-in-place efforts. Given Fb’s rising affect in these areas, CEO Mark Zuckerberg will seemingly touch upon his efforts to make the corporate a extra trusted data supply at a controversial time for information aggregators.
Boyd Gaming’s debt
Traders are bracing for some brutal monetary metrics when Boyd Gaming broadcasts its outcomes after the market closes on Tuesday. In any case, the on line casino operator’s properties have been closed for a lot of the quarter on account of COVID-19 social distancing efforts. These strikes impacted solely two weeks of the prior quarter, which confirmed an 18% income droop and a $138 million working loss. Boyd had no supply of revenue for practically eight full weeks in Q2, and so these high and bottom-line outcomes can be considerably worse this week.
Traders would possibly look previous the unusually weak second quarter if Boyd Gaming can present a gentle demand uptick because it reopened casinos in Las Vegas and throughout its properties within the Midwest and southern United States. Additional COVID-19 outbreaks may complicate these efforts, although, and require the enterprise to proceed taking over extra debt as an insurance coverage coverage towards traditionally tough promoting circumstances.
Anheuser-Busch’s gross sales quantity
Anheuser-Busch on Thursday morning will seemingly report surging demand in its retailing enterprise as customers stocked up on alcoholic drinks for residence consumption in March, April, and May. However that improve will not be sufficient to offset the lack of gross sales at bars and eating places, plus the forgone enterprise at sporting occasions, concert events, theme parks, and numerous different leisure venues that closed within the early days of the pandemic.
The beer titan’s final working replace instructed that gross sales volumes slumped by over 30% in the course of the preliminary section of lockdown measures, and that state of affairs will seemingly dominate Thursday’s report. Search for the patron staple chief to emphasize bettering outcomes since these April lows, whereas updating buyers on market share progress, together with the launch of Bud Gentle Seltzer. InBev wants to determine itself in rising classes like exhausting seltzers — which helps Boston Beer enhance gross sales by over 30% this yr — as a way to return to sustainable world quantity progress over time.