Although it seems like we are deep into earnings season, we are actually just getting started, with less than 15% of all companies already reporting. This upcoming week is vital to this earnings season because there are countless big-name market-moving companies scheduled to report. With that being said, I am looking at four of the most important Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), not necessarily to themselves, but companies that will impact the market and other stocks.
Restaurant Stocks Could Move this Week
McDonald's Corporation (NYSE:MCD) will announce earnings on Wednesday and is expected to post an EPS of $1.33, which would be $0.01 better than last year. McDonald's Corporation (NYSE:MCD) is the largest restaurant company in the market, with a massive presence throughout the world.
A couple weeks ago we saw Yum! Brands, Inc. (NYSE:YUM) trade lower due to contaminated chicken and Chipotle Mexican Grill, Inc.(NYSE:CMG) lose great value due to increased food costs. Therefore, I am curious to see how McDonald’s will perform after reports of higher costs and supply issues. As an investor, I’d watch shares of Burger King Worldwide Inc(NYSE:BKW), The Wendy's Company(NASDAQ:WEN), and even larger restaurant stocks such as Buffalo Wild Wings(NASDAQ:BWLD), Panera Bread Co(NASDAQ:PNRA), and Red Robin Gourmet Burgers, Inc.(NASDAQ:RRGB) after McDonald’s announces its earnings. If strong, then we could see an industry-wide rally; but if bad, then it might cause mass selling within the industry.
Watch for a Secular Move
The Procter & Gamble Company (NYSE:PG) is a secular company that should perform well regardless of the economy. However, secular companies such as P&G are great gauges of the overall economy, and sometimes analysts get ahead of themselves in creating expectations.
The market’s largest personal and household product company will announce on Friday and is expected to post $1.11 per share, which would be a large gain over its $0.89 last year. The stock is currently sitting near 52-week highs and is sure to cause a trickle-down-effect when it reports its quarterly report. Watch for reactions by other secular companies such as Church & Dwight Co., Inc.(NYSE:CHD),Colgate-almolive Company (NYSE:CL), and The Clorox Company (NYSE:CLX), and more importantly, watch for a big reaction from the overall market.
Apple Inc. (NASDAQ:AAPL)’s Earnings Will Move More than Just Apple
Apple is the largest company in the world, and despite all of the rumors and speculation, we will finally know on Wednesday the demand for Apple products. Apple is sure to make a big move after announcing earnings on Wednesday, but more important might be the numerous component companies that benefit from strong Apple demand.
The company’s earnings will have a huge impact on companies such as Laclede Group Inc Display, Cirrus Logic, Inc.(NASDAQ:CRUS), QUALCOMM, Inc.(NASDAQ:QCOM), Skyworks Solutions Inc (NASDAQ:SWKS), OmniVision Technologies, Inc. (NASDAQ:OVTI), and Broadcom Corporation (NASDAQ:BRCM) among many others. Furthermore, Apple Inc. (NASDAQ:AAPL) will have a huge impact on the price performance of other tech companies such as Research In Motion Limited (USA)(NASDAQ:RIMM) and Nokia Corporation (ADR) (NYSE:NOK), two companies that have risen on the belief of a demand change occurring. As a result, Apple will be the most watched company this week, and is sure to have a huge effect on the NASDAQ when it announces its quarterly report.
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