Earnings from big tech giants such as Microsoft, Alphabet, Meta Platforms, Apple and Amazon, representing roughly a quarter of the S&P 500 index, as well as GDP data will be in focus this week.(RM)
A bevy of economic reports will keep investors busy, with the most important being preliminary Q3 GDP data due Thursday. Economists expect the advance estimate to show the US economy grew last quarter after two straight negative quarterly readings.
The strength of the US dollar has hit companies hard: Citigroup strategists estimate that a 10% USD bump would cut $15 to $20 from S&P 500 earnings per share. The dollar index rose more than 17% against other currencies, including the euro and yen.
For US companies, this means that any revenues from overseas will be reduced when converted back to dollars. Analysts warn this could drive down growth rates for Alphabet, Amazon and Microsoft.
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