Can Microsoft destroy the trillion-dollar curse
The most exclusive corporate clubs launched a new member on Thursday when Microsoft reached $ 1 trillion in market value. However, its stay in the thin air was not long. While the Microsoft share completed the day higher on strong earnings, the moment answered a little in the afternoon, leaving the market value at just $ 990 million.
Microsoft is the third listed company to break the trillion dollar level, just to be yanked back with everyone else.
apple
crossed the trillion-dollar mark in August and peaked at $ 1.1 trillion in October. It then continued to thumb as investors were rattled by slowing down iPhone sales, losing 40% of its value in early January.
Amazon.com
Spent a few hours over a trillion dollar mark in September, but never actually closed that level. The stock, still vulnerable to consumer purchasing habits, fell 34% over the next four months.
Both Apple and Amazon have traveled since, but have not revised the trillion dollar mark either. Amazon made another run after announcing forecast-hit results of $ 3.6 billion on Thursday, just to get investors to realize that future growth was slowing down.
All the latest story will make Microsoft investors nervous. But there is reason to believe that the shares should be less volatile. The company has switched from a traditional software company to a shadow giant who makes a lot of their money from repeated transaction subscriptions. This gives investors greater certainty about future income.
Monday 29
Alphabet, MGM Resorts SBA Communications Spotify Technology and Western Digital Report Revenue.
Boeing and Honeywell International hold their annual meeting with shareholders in Chicago and Morris Plains, NJ respectively.
The Bureau of Economic Analysis publishes personal income data for March. Economists forecast a 0.4% increase in personal income after a 0.2% gain in February. Personal expenses for February are rising 0.7%
The Federal Reserve's favored inflation measure, Personal consumption Expenditure price index, is expected to have increased 1[ads1].4% year-on-year in February, roughly in line with January's reading. Core PCE, which excludes volatile food and energy prices, is estimated to have increased 1.9%, roughly the same as the January price.
Tuesday 30
Advanced Micro Devices, Amgen
apple
General Motors Mastercard McDonald's Merck Mondelez International Pfizer releases quarterly results.
The National Association of Realtors publishes its pending Home Sales Index for March. Consensus estimates are for a 2.3% jump after a 1% fall in February.
The Department of Supply Management reports its Chicago Purchasing Managers Index for April. Economists expect a 58 reading, down from March 58.7.
The conference board publishes its consumer confidence index for April. Expectations are for a 125.4 reading,
a small shock from March 124.1.
Wednesday 1
Automatic Data Processing, CME Group CVS Health Estée Lauder Humana Qualcomm and Quarterly Report Revenue.
Many global markets, including those
in China and Germany, are closed in accordance with the International Working Day – also known as the Working Day.
ADP publishes its National Employment Report for April. Consensus estimates are for a gain of 175,000 private works without the private sector following a modest increase of 129,000 in March.
The Department of Supply Management publishes its manufacturing PMI for April. Expectations are for a 54.9 reading, roughly the same as Mars data.
Activision Blizzard, Arista Networks CBS Cigna Dow Kellogg Under Armor and Zoetis hold conference calls to discuss quarterly results.
BLS releases productivity and labor cost data for the first quarter. Nonfarm productivity is expected to increase by 1%, compared to 1.9% in the quarter for 2018. The unit cost of labor is expected to jump 2.7%, up from 2% in the fourth quarter of last year.
Friday 3
American Tower, Cboe Global Markets Dominion Energy and Noble Energy report quarterly results.
BLS publishes its recruitment summary for April. Economist's forecast a 175,000 increase in nonfarm payrolls, down from March 196,000 gains.
The highlight of the week
Wednesday 1 FOMC announces its monetary policy decision. The central bank is expected to keep its benchmark portfolio rate unchanged at 2.25% to 2.5%.
Email: editors@barrons.com
