With nearly 1000 publicly traded companies reporting quarterly earnings this week — including 38% of the S&P 500 index, more than the total of S&P companies that have already reported in Q2 — we are now entering the busiest week of the current reporting cycle.
Kimberly-Clark Corp (KMB) rolled out the day by topping expectations on both top and bottom lines this morning ahead of the opening bell. However KMB is down over 1.50% in late morning trading.
But the biggest of the big — from Facebook Inc (FB), to Amazon.com, Inc. (AMZN), to Alphabet Inc (GOOGL) report later in the week. For a comprehensive view on Q2 earnings season, make sure to read Zacks Director of Research Sheraz Mian’s Earnings Preview here.
Ahead of the plethora of earnings reports hitting the tape today, we see markets starting the week almost exactly at levels of last week’s close. The Dow Jones Industrial Average, Nasdaq Composite and S&P 500 are all within 2 points up or down from Friday’s closing bell.
In this morning’s biggest news, Verizon Communications (VZ) and Yahoo! Inc. (YHOO) made it official: the telecom major is purchasing web assets of the Internet company for $4.8 billion in an all-cash deal.
Verizon, it appears, is changing its focus from competing directly with the AT&T Inc.’s (T) and Sprint Corp’s (S) of the world, and taking on the wider scale and reach of companies like Facebook and Google.
Yahoo CEO Marissa Mayer is staying on in her current post, likely to oversee the myriad connections and deals this merger will entail. Verizon’s AOL business, run by CEO Tim Armstrong, will take Yahoo! into its fold. Yahoo shares are up nearly 10% from its one-month lows, but the stock is down a bit in pre-market trading. Verizon shares jumped on the buyout news Friday, and is up again slightly this morning.
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