Can Corporate Earnings Trump Geopolitics Today?

Western leaders are pointing the blame at Russia for Thursday’s dreadful plane crash so the likelihood of stronger sanctions as well as the increasing death toll in Gaza has sent European markets sharply lower with US markets looking set to follow suit.

It will be left to earnings from the likes of Netflix (NASDAQ:NFLX), Allergan (NYSE:AGN) and Halliburton (NYSE:HAL) to lift investor confidence in the profitability of corporate America

Futures suggest the Dow 30 will open 40 points lower at 17,060 with the S&P 500 expected to open 5 points lower at 1,973 and the Nasdaq 100 8 points lower at 3,931.

Allergan’s management need solid earnings to justify to shareholders that Allergan as a standalone entity as opposed to one merged into Valeant Pharmaceuticals can produce the most value. The company is expected to earn $1.44 per share on revenue of $1.77bn before the market open today.

Halliburton has unsurprisingly been trading at a premium given the current global unrest. The defence contractor is expected to report earnings of 91c per share on revenue of $7.88bn before today’s open.

Netflix will release earnings after today’s close. The company announced a price hike for monthly users last quarter, has been expanding in Europe and has won critical acclaim for its original content. The price hike will have boosted the bottom line but its influence on new customer sign-up will also be a key metric to watch. The online streaming company is expected to earn $1.16 per share on revenue of $1.33bn.


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