• Apple (AAPL) stock next up on the earnings docket, after the close on Thursday.
  • Facebook Meta (FB) stock rallied 20% on mediocre earnings, a relief rally.
  • Amazon (AMZN) is also set to release earnings after the close on Thursday.

Earnings season really is getting into the meaty stuff this week. We already mentioned this was a make-or-break week and so it is proving. 170 out of the S&P 500 companies are reporting this week. But more importantly, it is mega-cap or mega-tech weak on the earnings front. In the short term – and by that I mean quarterly – stock market performance is largely dictated by earnings performance.

Read more stock market research

There have been various studies on this to prove the point so I won't bore you with citing them. The long-term direction is largely determined by global macroeconomic factors as these will naturally affect company earnings but there is a lag. So if we can get through this week in decent shape then a bear market rally could unfold for the next month. I say bear market because I feel the macro fundamentals will eventually outweigh positive earnings. Deutsche Bank recently move to pencil in a US recession by 2023 and the stock market is generally forward pricing by about 6 months. So that should give us a tough second half of 2022. 

Apple stock news: AAPL earnings preview

After the close Apple is expected to hit $93.9 billion in revenue and earnings per share (EPS) of $1.43. More importantly, though will be the conference call. We know about the widely publicized lockdowns in Beijing and Shanghai. Foxconn, an Apple supplier, has been hit with factory closures and investors will want to know how this will affect Apple going forward. This quarter's earnings may not be affected but it may be a big headwind for the next quarter. 

Apple stock forecast: AAPL downtrend stays below $179.65

Apple (AAPL) stock has been outperforming other tech names but remains in a modest downtrend formation. A series of lower lows is the key here. So $150 is the key support and $171 the first, but weaker resistance. $179.65 is the real test.

Apple (AAPL) stock chart ,daily

Amazon stock news: AMZN earnings preview

Amazon is also out after the close with earnings. Earnings per share (EPS) is expected to reach $8.07 on revenue of $116.3 billion. We do have some positive read-across from Microsoft (MSFT) earnings earlier this week. Microsoft's Azure is the number one in cloud services but Amazon Web Services (AWS) does occupy the second position in the cloud services sector. Microsoft Azure posted very strong gains and helped MSFT to a solid beat on the top and bottom lines.

The sector it appears is still growing and should benefit AWS. However, Amazon faces consumer headwinds with demand being impacted by inflation and problems with shipping and logistics well known. So it's all to play for here.

Amazon stock forecast: Buybacks to support AMZN

Amazon (AMZN) stock is pretty much at must-hold levels at $2,700 otherwise look out below. What we should also look out for are more massive buyback announcements from Amazon and Apple. Corporate buybacks are helping support the equity market, especially as the Fed pulls the plug on its own printing press. Corporate buybacks are at record levels.

Amazon (AMZN) stock chart, daily

The author is long Facebook

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD recovers above 1.0400, looks to post weekly gains

EUR/USD recovers above 1.0400, looks to post weekly gains

EUR/USD regained its traction after dropping toward 1.0350 in the early American session and climbed above 1.0400. Trading conditions remain thin on Black Friday and the pair remains on track to end the week in positive territory.

EUR/USD News

GBP/USD recovers toward 1.2100 as US Dollar loses strength

GBP/USD recovers toward 1.2100 as US Dollar loses strength

GBP/USD managed to stage a recovery toward 1.2100 in the American session on Friday and now looks to register gains for the third straight week. The US Dollar struggles to preserve its strength as markets remain subdued on Black Friday. 

GBPUSD News

Gold steadies near $1,750 as US yields retreat

Gold steadies near $1,750 as US yields retreat

Gold price continues to move sideways at around $1,750 heading into the weekend. The benchmark 10-year US Treasury bond yield retreated from the daily high it touched above 3.75% earlier in the day, allowing XAU/USD to erase a portion of its daily losses.

Gold News

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin price is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read more

FX next week and yield curve inversions

FX next week and yield curve inversions

Since the Fed's last raise November 3, Fed Funds rate opens and closes at 3.83. The Fed Funds rate once traded freely on its own with highs and lows as any financial instrument. In 2000, Central banks implemented meetings every 6 weeks.

Read more

Forex MAJORS

Cryptocurrencies

Signatures