Wednesday, July 26th, 2017

After the closing bell this afternoon, we look forward to Q2 earnings results from social media giant Facebook FB, the Zacks Rank #2 (Buy) stock is expected to bring in $1.13 per share on revenues of $9.17 billion, both of which represent more that 42% growth year over year. Facebook has gained more than $50 per share year to date, up nearly 44%.

People picking through its Q2 report, we’ll check user numbers and engagement, and perhaps figure out whether/how Facebook-owned Instagram is eating the lunch of competitors like Snapchat SNAP. Facebook is also today’s Bull of the Day.

On the econ data side, we expect new reads on New Home Sales (June), which analysts expect will be up 1.5% for the month. In a related matter, mortgage applications are up on the latest findings, although they have been completely driven by refinancing activity, not new real estate purchases, which were down.

Also, the Federal Open Market Committee (FOMC) comes out with its latest statement today, following its June meeting and the subsequent interest rate hike of another quarter percent. There will be no testimony from Fed Chair Janet Yellen this time around; we will merely see a compiled issuance of the most recent understanding of the FOMC. Zacks Chief Strategist John Blank says to look out for “market-moving comments about weak inflation data.”

Ahead of the Bell

This morning, we see more Q2 earnings reports from some of the most well-known companies in the stock market. All three reported mixed Q2 results early today, though none could put a damper on the bull run continuing in the Dow these days.

The Boeing Company BA posted earnings of $2.55 per share compared to $2.32 in the Zacks consensus estimate. Revenues, however, missed expectations of $23 billion to $22.74 billion in the quarter. The airplane-making giant also raised its 2017 earnings guidance by 15 cents on both sides of its range from $9.20-9.40 per share. Cash flow, global air traffic and terrific orders for its 787 all boost BA higher. The Zacks Rank #2 (Buy) stock is up big in today’s pre-market, over $7 per share (roughly 3.4%), and has grown nearly $100 a share year over year.

Ford Motor Company F posted a surprise swing to earnings growth in its Q2 report this morning, bringing in 56 cents per share from the 44 cents expected. Sales in the quarter, however, also slipped lower than the Sacks consensus of $38 billion to “just” $37.1 billion. This still represents year over year revenue growth, although product recalls and weakness in its South American markets weighed on the results. Ford also sits in an industry with a Zacks Industry Rank of 227 of 265, or in the lowest 14%.

Also witnessing difficulties in with its heavily exposed South American businesses, Zacks Rank #3 (Hold)-rated Coca Cola KO reported a 2-cent beat on its bottom line to 59 cents per share, while revenues very marginally missed expectations of $9.71 billion to $9.70 billion in the quarter. Coke also upped its 2017 forecast, citing assistance from a lower dollar in its international sales and organic growth of 3%.

Mark Vickery
Senior Editor

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Key Earnings Reports For Jul 27, 2017