The Week Ahead: US Big Tech | Card Networks | US Auto | UK Banks

7:00am by Mark Simpson

4 comments 649 reads

Hi, and welcome to The Week Ahead, your destination for what's coming up this week in large cap and international stocks.

Coming up this week…

Date	Big UK earnings	US company reporting	Economic announcements
Monday - 22 July		Verizon (Q2)
Tuesday - 23 July		Alphabet (Q2) Capital One Coca-Cola (Q2) General Motors (Q2) Philip Morris (Q2) Tesla (Q2) Texas Instruments (Q2) United Parcel Service (Q2) Visa (Q3)	PMI (U, US, EU)
Wednesday - 24 July	Informa (Interims) Reckitt Benckiser (Interims) Unite (Interims)	AT&T (Q2) Ford (Q2) General Dynamics (Q2) IBM (Q2) Mastercard (Q2)	New Home Sales (US)
Thursday - 25 July	AstraZeneca (Q2) Anglo American (Interims) British American Tabacco (Interims) Centrica (Interims) Centamin (Q2) Howden Joinery (Interims) Lloyds Banking (Intrims) Relx (Interims) Rentokil Initial (Interims) Unilever (Q2) Vodafone (TS)	Honeywell (Q2) Union Pacific (Q2)	Initial Jobless Claims (US) GDP (US)
Friday - 26 July	Drax (Interims) IMI (Interims) Natwest (Interims) Rightmove (Interims) Segro (Interims)	3M (Q2)

Economic Data

It's a quiet week for economic data. The main figures released for all major regions is the Purchasing Managers' Index (PMI) on Tuesday. This is compiled monthly by the Institute for Supply Management and indicates the direction of economic trends in the manufacturing and service parts of the economy. The survey asks purchasing managers whether market conditions are expanding, staying the same, or contracting, in their opinion.

This will be a trailer for US GDP figures for Q2, which will be released on Thursday. Real GDP is expected to remain positive and in line with 24Q1 but below the strong figures in 23H2. US interest rate cuts are currently expected in September and December this year, so any GDP surprises to the upside may delay these.

US Big Tech

AI leader Alphabet reports its Q2 numbers on Tuesday. This is a high-quality business with significant momentum behind it:

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Jonniegul

9:17am

Also reporting today, Kaspi.kz AO (NSQ:KSPI) . I hold.

Not for everyone, a bank. In Kazakhstan... but throws off money. If you don't use the Kaspi Bank app in Kazakhstan, technically, you don't actually exist.

Needless to say, I'm expecting good numbers and continued growth

ChrisW

9:52am

Mark, thanks for that.

May is suggest that maybe your comment on the UK banks isn't entirely consistent.

You say "Both companies have done well this year, rising almost 50%."

Then "the outlook for earnings has declined over the last year."

Obviously the time frames are different.

If we take NWG (maybe not LLOY) then during this year, the eps no's for 24 have gone from 37.5p to 41.4p

So the business is doing better than expected, with ratings significantly below the market and very healthy balance sheets (probably massively over capitalised although i haven't done the work recently).

Add in a stock rank of 89 and as the French would say "Robert et ton oncle!"

I hold a few NWG.

Mark Simpson

12:42pm

Thanks Chris,

Yes, I was looking a little further back, and you are right; the trend in earnings forecasts appears to be reversing for Natwest (LON:NWG) more quickly than for Lloyds Banking (LON:LLOY) . I still think that better growth and lower P/B make Barclays (LON:BARC) the pick of the sector. Although I don't currently own shares in it so I can't be that enthusiastic!

Mark

12:47pm

One I've never heard of, so thanks for sharing. Certainly not a bank with any book value to fall back on, but it does generate some stunning returns on equity. I guess that app-based business model provides significant network effects. By chance, a former boss of mine headed up the Kazakhstan subsidiary of one of the major UK-listed banks. Let's just say it was an interesting experience for him!

The Week Ahead: US Big Tech | Card Networks | US Auto | UK Banks

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Economic Data

US Big Tech

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Mark Simpson

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