The S&P 500 closed the week near its record as earnings season opens, with PepsiCo, Delta Air Lines, and Micron among the index stocks in focus. Each reports next week against a backdrop of strong estimated profit growth.
The S&P 500 ended the week at $7,483, a few points below its all-time high of $7,620, after wavering over the past month as energy and artificial intelligence stocks pulled back. With earnings season starting, analysts estimate average second-quarter earnings growth of 22%, though the final figure will be better than expected. Each of the three index names reports next week.
PepsiCo reports amid a correction
PepsiCo publishes its results on July 9, and the stock enters the print in a correction after falling more than 15% from its high this year. Its most recent report beat expectations, with $19.44 billion in Q1 revenue against a $18.94 billion consensus.
Still, some analysts remain cautious. Evercore predicts a miss, while the consensus sees revenue of $23.96 billion, up 5.4% from a year earlier.
Delta to detail US-Iran war impact
Delta Air Lines, the biggest US airline group, will report next week and shed light on how the US-Iran war pushed jet fuel prices higher. Unlike rivals, Delta owns a refinery that turns crude oil into jet fuel, leaving it better positioned. Its stock has jumped over 83% in the past 12 months and trades near a record.
Analysts expect revenue jumped 12.8% to $18.78 billion, while EPS narrowed from $2.1 to $1.48. Profitability will likely improve as crude oil and jet fuel prices retreat.
Micron in focus after Michael Burry short
Micron, the third-biggest High-Bandwidth Memory company, draws attention after Michael Burry disclosed a short position against it, arguing the stock is overvalued and will reverse when the AI boom fades. The bet lands as the company posts strong numbers.
Its recent earnings showed revenue jumped 300% to $41 billion in the third quarter. Management now projects $50 billion in the fourth quarter, with gross margins reaching 86%.
Source: Benzinga
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