It\u2019s a bumper week ahead for investors, and one that could provide plenty of answers to the burning questions around the second half of the year.<\/p>\n
The Federal Reserve will make its latest interest-rate decision Wednesday, followed by the European Central Bank and the Bank of Japan. A flurry of economic data, culminating with the Fed\u2019s preferred inflation metric Friday will also keep investors busy.<\/p>\n
If that\u2019s not enough, more than 150 S&P 500 companies will report this week, offering clues about the health of the U.S. consumer.<\/p>\n
It\u2019s hard to predict what\u2019s going to steal the show, but it could well be Big Tech earnings. Microsoft, Alphabet, and Meta Platforms are all due to report at a crucial time for the tech-stock rally.<\/p>\n
The technology-heavy Nasdaq Composite fell last week, underperforming the Dow, which has now climbed for 10 consecutive trading sessions. The Nasdaq 100 also dropped ahead of its rebalancing, which comes into effect Monday.<\/p>\n
The sector may need some good news to reignite the rally, but after strong gains so far in 2023\u2014and plenty of AI developments baked in\u2014expectations are high.<\/p>\n
Tech earnings will go some way to answering whether the Dow\u2019s recent outperformance of tech stocks is the beginning of a prolonged reversal or a short-term blip. <\/p>\n
Investors will need to keep their heads on a swivel this week\u2014the path ahead for the rest of the year is about to become clearer.<\/p>\n
\u2014Callum Keown<\/em><\/p>\n *** Join Barron\u2019s senior managing editor Lauren R. Rublin and deputy editor Ben Levisohn today at noon when they talk with founder and president of Delphi Management Scott Black on the outlook for financial markets, industry sectors, and individual stocks. Sign up here.<\/em><\/em><\/p>\n Try your hand at this morning\u2019s Barron\u2019s digital jigsaw, which is based on the week\u2019s cover story. For all games, including the daily crossword and sudoku, click here.<\/em><\/p>\n Microsoft, Alphabet, Meta Platforms Due to Report<\/h2>\n \n Microsoft,<\/span><\/p>\n Alphabet,<\/span> What\u2019s Next:<\/strong> Wall Street expects Meta to post earnings per share of $2.91 on revenue of $31.1 billion, up nearly 8% from last year. But this is the firm\u2019s \u201cyear of efficiency,\u201d so analysts will also be listening for updates on cost control and layoffs.<\/p>\n \u2014Liz Moyer<\/em><\/em><\/em><\/p>\n Restaurant giants also report earnings this week, including What\u2019s Next:<\/strong> LPL Research projects the consumer discretionary sector will record double-digit earnings growth, with companies in the entertainment, hotel, restaurant, and leisure businesses contributing to the earnings boost.<\/p>\n \u2014Sabrina Escobar and Janet H. Cho<\/em><\/em><\/em><\/p>\n Twitter is transforming to X.com, with a new X logo replacing the blue bird logo. Owner Elon Musk polled his 149.1 million followers on the social media platform whether he should change the site\u2019s color scheme from blue to black as he bids farewell to the Twitter brand.<\/p>\n What\u2019s Next:<\/strong> How advertisers respond to the rebrand could be a critical issue for the platform. Musk has said its advertising revenue is down 50%, and that it hasn\u2019t turned around as quickly as he had hoped, remaining cash-flow negative as of the second quarter.<\/p>\n \u2014Janet H. Cho<\/em><\/em><\/p>\n AMC Entertainment Holdings has filed a revised stock conversion proposal after a judge blocked the plan by the movie theater group to convert its so-called APE shares into common stock, CEO Adam Aron said Sunday. The stock jumped in the early premarket Monday.<\/p>\n What\u2019s Next:<\/strong> AMC will be hoping the revisions will suffice but expect more stock volatility. While the company was set for a boost from a bumper weekend that featured debuts of the Barbie and Oppenheimer movies, it\u2019s uncertainty over the stock-conversion proposal that will affect its shares.<\/p>\n \u2014Callum Keown and Rupert Steiner<\/em><\/em><\/p>\n \u201cBarbenheimer\u201d (the name being given to the concurrent releases of the Barbie and Oppenheimer movies) beat expectations and helped boost the industry\u2019s box office sales to their best weekend showing of the year, topping $300 million, according to Comscore. Hollywood studios have been struggling with weak sales, and a strike by writers and actors could disrupt production of future blockbusters.<\/p>\n What\u2019s Next:<\/strong> Moody\u2019s Investors Service estimates that a potential new three-year contract for the writers and actors unions, together with an already-ratified agreement for the Hollywood directors union, could cost media companies an extra $450 million to $600 million a year.<\/p>\n \u2014Liz Moyer<\/em><\/em><\/p>\n***<\/h4>\n
\n
\n and
\n Meta Platforms
\n headline this week\u2019s earnings reports from big tech companies. The sector has been rocketing higher this year on hopes for artificial intelligence to transform the industry. Some investors are asking how much those AI advancements might cost.<\/p>\n\n
***<\/h4>\n
Chipotle, McDonald\u2019s Will Show Consumers\u2019 Appetite for Spending<\/h2>\n
\n Chipotle Mexican Grill
\n and
\n McDonald\u2019s.<\/span>
\n The reports could show whether consumers are still willing to spend more to eat out. Although the
\n AdvisorShares Restaurant ETF
\n is up 24% this year, growth may have slowed, Wells Fargo told its clients.<\/p>\n\n
***<\/h4>\n
Musk Bids Adieu to Twitter Brand, Blue Bird Logo<\/h2>\n
\n
\n Tesla
\n and xAI, said during an interview on Twitter Spaces that the rebranding should have been done earlier. He bought Twitter in October and plans to cut the logo off its headquarters<\/strong> building \u201cwith blowtorches.\u201d The X logo was to go live Sunday, he said in the afternoon.<\/p>\n<\/li>\n
\n PayPal,<\/span>
\n and he even named one of his sons \u201cX AE A-12,\u201d (changed to \u201cX AE A-Xii\u201d because numbers aren\u2019t allowed in names under Californian law) but calls him \u201cX.\u201d <\/p>\n<\/li>\n<\/ul>\n***<\/h4>\n
AMC Revises APE Stock Conversion Settlement<\/h2>\n
\n
***<\/h4>\n
Barbie and Oppenheimer Combine for 2023\u2019s Best Box Office Weekend<\/h2>\n
\n
\n Warner Bros. Discovery,<\/span>
\n sold an estimated $155 million of tickets domestically, according to Comscore, while Oppenheimer<\/em>, by
\n Comcast
\n -owned Universal, notched ticket sales of $80.5 million. For the industry, it was the fourth-biggest box office sales weekend<\/strong> ever and the best since 2019.<\/p>\n<\/li>\n
\n Walt Disney\u2019s<\/span>
\n Indiana Jones and the Dial of Destiny<\/em>, which cost about $295 million to make, has grossed $154 million in domestic box office sales since its June 30 opening, Box Office Mojo said.<\/p>\n<\/li>\n***<\/h4>\n