Roughly one-third of S & P 500 companies are slated to report earnings this week, but investors will keep an eye on a select group of names as they search for clues on where the market goes next. Big Tech names Alphabet, Microsoft, Meta Platforms and Amazon are scheduled to post their latest quarterly results. By market cap, these are four of the 10 biggest S & P 500 names, making their earnings releases much more significant than others. Roughly 17% of the S & P 500 has reported calendar first-quarter earnings thus far, with 76% of those companies beating expectations, according to FactSet. To be sure, this week could make or break this earnings season given the size of the Big Tech names reporting. “While the macro is clearly not roses and champagne, we believe March earnings season will show better than feared results in the tech space,” Wedbush analyst Dan Ives wrote Sunday. Check out what to expect from each report. Tuesday General Motors is set to report earnings before the bell, followed by a conference call at 8:30 a.m. ET. Last quarter: GM posted earnings that easily beat expectations and issued strong guidance. This quarter: Analysts expect the automaker’s profit fell by double digits but also forecast high single-digit revenue growth, according to Refinitiv. What CNBC is watching: General Motors shares have struggled this year, rising just over 1%, lagging rival Ford’s advance of roughly 4%. Earlier this month, the company said 5,000 salaried workers will take buyouts in a move aimed at reducing costs. This all comes as GM, along with the rest of the automotive industry, shifts away from internal combustion engine vehicles in favor of electric ones. Mizuho analyst Vijay Rakesh, who has a neutral rating on the stock, said in an April 12 note that GM is walking a “tightrope.” He said: “GM faces profitability challenges as it transitions from a ~98% ICE portfolio (~17% gross margins) to ~25% EV (we estimate current gross margins at negative ~15-30%) by 2025E.” What history shows: GM has reported a better-than-expected bottom line in 29 of the last 30 quarters, per FactSet. To be sure, Bespoke Investment Group data shows the stock averages just a 0.25% gain on earnings day. McDonald’s is set to report earnings in the premarket, with management slated to hold a call at 8:30 a.m. ET. Last quarter: MCD reported profit growth as high inflation drove customers to the company’s restaurants . This quarter: The fast-food giant is expected to report muted earnings growth from the year-earlier period, Refinitiv data shows. What CNBC is watching: Like many companies across different industries, McDonald’s is moving to lower costs where it can. Earlier in April, the company announced the closing of its U.S. corporate offices, laying off hundreds of workers . Investors will look for clues on whether more cost-cutting measures will take place. Additionally, they will keep an eye out for signs on how persistent inflation is impacting McDonald’s top and bottom lines. What history shows: McDonald’s earnings have topped expectations in eight of the last 10 quarters, FactSet data shows. The stock has also posted gains in each of the last three earnings days. PepsiCo is set to report earnings before the open. A conference call is also slated for 8:15 a.m. ET. Last quarter: PEP earnings topped expectations as higher prices boosted sales . This quarter: PepsiCo’s earnings and revenue are expected to have grown slightly year over year, according to Refinitiv. What CNBC is watching: PepsiCo shares have lagged the broader market, rising just 2.4% in 2023. However, that’s better than rival Coca-Cola’s less-than 1% gain. To be sure, UBS analyst Peter Grom thinks PepsiCo has a high bar to clear regarding organic sales growth. “While Street estimates currently call for +9.3% organic growth during the quarter, we would not be surprised if the buy-side bar is > 10%.” What history shows: Bespoke data shows PepsiCo beats earnings 78% of the time. The stock has also posted gains in each of the last two earnings days. Alphabet is set to report earnings after the bell, followed by a conference call at 5 p.m. ET. Last quarter: GOOGL earnings and revenue came in short of expectations as YouTube’s ad sales missed estimates . This quarter: Alphabet’s earnings are expected to have fallen by more than 10% on a year-over-year basis, according to Refinitiv. Analysts also see marginal revenue growth. What CNBC is watching: The company has been in the midst of restructuring measures that include announcing the elimination of 12,000 jobs in January . Investors will look for clues on whether more cost-reduction efforts will take place. What history shows: History shows Google’s parent company beats earnings expectations 68% of the time, with the stock averaging a gain of 1.6% on earnings day, per Bespoke. To be sure, the company posted four straight earnings misses, per FactSet. Microsoft is set to report earnings after the bell, followed by a call at 5:30 p.m. ET. Last quarter: MSFT said new business growth slowed in December and offered lackluster guidance . This quarter: Analysts expect the tech giant’s earnings remained unchanged year over year, per Refinitiv. What CNBC tech reporter Jordan Novet is watching: “Sales of highly profitable Windows operating system licenses will probably be down sharply, as management had predicted in January. Declines are also likely in gaming, devices and enterprise services. But, the world is more excited about how Microsoft might benefit over time from its alliance with Microsoft-backed startup OpenAI, whose artificial-intelligence models will power forthcoming productivity and security products. Details on financial impact would be notable, along with any new commentary on when Microsoft might close its $68.7 billion Activision Blizzard deal. If investors don’t hear anything about those topics, they’ll be poring over executives’ new remarks about how clients are approaching optimization on the Azure cloud.” What history shows: Microsoft averages a 0.3% gain on earnings day, Bespoke data shows. However, the stock fell after the company’s last two quarterly reports were released, including a 7.7% drop on Oct. 26. Wednesday Boeing is set to report earnings before the bell, with a call slated for 10:30 a.m. ET. Last quarter: BA reported a quarterly loss, pressured by labor and supply chain issues . This quarter: Boeing’s revenue is expected to have grown by more than 20%, per Refinitiv. What CNBC is watching: Boeing shares have been under pressure this month, losing more than 3%, as investors fret over news that a production problem will likely lead to a slowdown of 737 Max deliveries. To be sure, CEO Dave Calhoun maintained that this won’t hinder Boeing’s supply chain plans for greater 737 Max production . Investors will look for clues on potential production delays from the airplane maker. What history shows: Bespoke data shows Boeing beats earnings expectations 70% of the time. However, the stock has fallen in each of the last two earnings days. Meta Platforms is set to report earnings after market close, followed by a conference call at 5 p.m. ET. Last quarter: META ‘s revenue topped expectations, sending the stock soaring . This quarter: The Facebook parent is expected to report a sharp year-over-year earnings drop, according to Refinitiv. What CNBC tech reporter Jonathan Vanian is watching: “When Facebook parent Meta reports its results on Wednesday, investors will be monitoring how much revenue the company brought in. The company’s previous guidance aimed at revenue between $26 billion and $28.5 billion. If Meta reaches the high end of its guidance, it will finally break its losing streak of three consecutive quarterly sales drops. Investors will also be curious as to how the company’s major cost-cutting efforts will impact its earnings per share for the quarter. Last week, Meta laid off roughly 4,000 employees who worked in technical roles , which is part of the company’s previously announced plan to lay off 10,000 workers. This is coming off of a previous round of layoffs in November that affected 11,000 employees. Meanwhile, Meta still aims to spend billions of dollars developing the virtual reality and augmented reality technologies needed to underpin the so-called metaverse, which CEO Mark Zuckerberg believes could represent the next era of computing for consumers.” What history shows: Meta’s quarterly earnings have missed expectations in three of the last four quarters, per FactSet. The stock has also been volatile after those reports, including two daily moves of more than 20%. Thursday American Airlines is set to report earnings before the open, with a call expected at 8:30 a.m. ET. Last quarter: AAL posted earnings that beat expectations, boosted by higher fares . This quarter: Analysts expect the airline to report a sharp year-over-year revenue jump, according to Refinitiv. What CNBC is watching: The guidance from American Airlines will be key, after the company earlier this month signaled its bottom line could take a hit due to rising fuel and labor costs. What history shows: American Airlines averages a 0.2% drop on earnings day, according to Bespoke. However, the stock popped more than 2% after its most-recent earnings report. The company also reports a stronger-than-expected bottom line 89% of the time. Amazon is set to report earnings after the bell. Management is expected to hold a call at 5:30 p.m. ET. Last quarter: AMZN posted a mixed quarter, with revenue topping estimates but guidance coming in light . This quarter: The e-commerce giant’s revenue is forecast to have grown slightly from the year-earlier period, Refinitiv data shows. What CNBC tech reporter Annie Palmer is watching: “Amazon’s cloud computing division will be in focus in its first-quarter earnings. Amazon Web Services missed estimates last quarter, and the business grew just 20%, as businesses have trimmed their cloud spend amid a challenging economic environment. The slowdown is expected to continue during the current quarter. Wall Street will be listening for any color from Amazon executives on when they expect the situation to improve, with some analysts predicting the second half of this year could be when growth rates start to normalize. Investors will also likely want to know if consumers’ struggles with rising inflation showed up in Amazon’s retail business. They may also ask about CEO Andy Jassy’s recent cost-cutting initiatives , and Amazon’s efforts around generative artificial intelligence as competition heats up in the space.” What history shows: Amazon earnings beat expectations just 62% of the time, per Bespoke. And, while the stock averages a 0.75% gain on earnings day, it dropped 8.4% and 6.8%, respectively, after the last two reports. Intel is set to report earnings after the close, followed by a call at 5 p.m. ET. Last quarter: INTC fell on disappointing earnings and revenue . This quarter: Refinitiv data shows analysts expect the chipmaker’s revenue to have fallen sharply year over year. What CNBC tech reporter Kif Leswing is watching: “Intel is in a rut, even as CEO Pat Gelsinger’s turnaround plan enters its third year. Intel’s slump will be clearly visible this report: Analysts expect the company to report a loss after reporting a profit a year ago. The short-term problems are related to the company’s slow rollout of its latest server chips, as well as a deeply hurting global PC market. But, there’s also some room for optimism at Intel if management signals that its costs are down, sales are recovering, or it has a compelling story about AI chips — which Nvidia is currently dominating.” What history shows: Bespoke data shows Intel beats earnings expectations 77% of the time. However, the stock typically struggles on earnings days, losing an average of 1.1%.
