Tech Giants Earnings and Economic Data on Tap Next Week

Next week, Alphabet and Tesla will report earnings, followed by the remaining "Magnificent Seven" tech companies. New economic data will reveal the impact of tariffs on US consumer and business spending. Powell will deliver a speech, and investors will be looking for insights on the Federal Reserve's future actions.

Next week, investors will have their eyes on Alphabet and Tesla as they report their earnings. Meanwhile, the remaining "Magnificent Seven" tech companies will follow suit, providing a comprehensive overview of the industry's performance. Additionally, new economic data will reveal the impact of tariffs on US consumer and business spending. Powell will deliver a speech, offering insights into the Federal Reserve's future actions.

Alphabet (GOOGL)
Alphabet is expected to report Q2 earnings of $2.14 per share, up 13.2% year-over-year (YoY), and revenues of $79.25 billion, up 11.1% YoY [1]. The company's search revenue is projected to rise 11% YoY, while Google Cloud is expected to generate $13.04 billion. Bank of America analysts have raised their price target for Alphabet to $210, citing strong AI tailwinds, ad recovery, and robust enterprise software demand [1].

Tesla (TSLA)
Tesla is predicted by Wall Street analysts to post quarterly earnings of $0.40 per share, reflecting a decline of 23.1% compared to the same period last year. Revenues are forecasted to be $22.48 billion, representing a year-over-year decrease of 11.9% [2]. Analysts' assessments point to a year-over-year change of -11.3% in 'Revenues- Automotive sales' and a +12.1% change in 'Revenues- Energy generation and storage'. The stock has demonstrated returns of -0.8% over the past month compared to the Zacks S&P 500 composite's +5.4% change [2].

Federal Reserve
President Donald Trump's discussion about firing Federal Reserve Chair Jerome Powell sent stock prices tumbling and bond yields climbing. However, Trump later walked back such plans, restoring calm to the markets. The independence of the Fed is critical, according to JPMorgan Chase CEO Jamie Dimon [3]. Powell's upcoming speech will provide insights into the Federal Reserve's future actions and the potential impact on interest rates and inflation.

References
[1] https://www.investing.com/news/analyst-ratings/keybanc-raises-alphabet-stock-price-target-to-215-on-ai-momentum-93CH-4138806
[2] https://www.nasdaq.com/articles/curious-about-tesla-tsla-q2-performance-explore-wall-street-estimates-key-metrics
[3] https://abcnews.go.com/Business/independent-federal-reserve-matter-experts-explain/story?id=123831800