The week ahead: Earnings aftermath
Investors will get a chance to digest all the earnings news that came out of corporate America during the past two weeks.
Following are some of the notable tech-related events scheduled for the week of July 30 through Aug. 3.
Investors will get a chance to digest all the earnings news that came out of corporate America during the past two weeks.
Just as the tech sector drove the economy over the past few years, it appears that it is now holding it back.
According to First Call, 67 of the 83 technology companies in the Standard & Poor's 500 index have reported second-quarter earnings so far and 55 percent of them beat earnings expectations, 41 percent matched, and 5 percent fell short.
Even though most companies held the line in terms of expectations, profits in the tech sector fell 63 percent from the same quarter last year and First Call forecasts a drop of 63 percent for the third quarter and a 35 percent decrease in the fourth.
The bright side? Tech earnings are expected to grow 15 percent in the first quarter of 2002 from this year's first quarter.
Wall Street will also be scrutinizing the jobs report to be released by the Department of Labor on Friday. The report provides key insight into the labor market and the health of the overall economy.
The information was gathered from First Call, Hoover's Online, CCBN's StreetEvents and CNET Investor.
Other events scheduled this week:
TECH EVENTS
Monday, July 30
- Hollywood Syndicate will hold the DivX Summit at the Sofitel Hotel in Los Angeles, July 30-31. The conference will focus on DivX, technology that digitally formats video content, therefore making it deliverable via Web distribution.
- The California Technology Forum kicks off at Fess Parker's DoubleTree Resort in Santa Barbara, Calif., July 29-Aug. 3. The event will address topics like the Internet, wireless technology, streaming media and Windows issues. Exhibitors include Cisco Systems, BEA Systems, Compaq Computer, and Research In Motion.
- Chipmaking giant Intel will introduce its new chip for laptop computers known as the Pentium III-M, or Tualatin, at the Ritz-Carlton Hotel in San Francisco at about 11 a.m. on July 30.
- The International Society for Optical Engineering will hold a conference at the San Diego Convention Center July 29-Aug. 3. The event is for engineers, researchers, educators, managers and students who wish to learn more about optical communication technology.
- Merrill Lynch analyst Steve Milunovich will host a luncheon event featuring George Gilder as the keynote speaker at the Maloney & Porcelli restaurant in New York on July 31. Gilder is president of the Gilder Technology Group and editor of the Gilder Technology Report. He focuses mainly on understanding long-term trends that will affect the technology industry. E-mail Karen Bastick at karen_bastick@ml.com for more information.
- Adams, Harkness & Hill will host a conference on emerging growth companies in the technology, healthcare and consumer industries at the Marriott Long Wharf in Boston, July 31-Aug. 2. Presenting companies include Nortel Networks, JDS Uniphase, Akamai Technologies and private companies.
- U.S. Bancorp Piper Jaffray wireless analysts Bill Crawford and Sam May will hold a luncheon to discuss trends in the wireless industry. The event takes place at the Chrysler Building in New York City on Aug. 1 at 1 p.m. The equity analysts will address issues like the wireless Web, mobile commerce, next-generation technology and wireless software. E-mail Dana Wade at dwade@pjc.com for more information.
- Active Communications International will host a conference on IP cable telephony at the Adam's Mark Hotel in Denver, Aug. 1-2. The event will focus on how to engineer cable networks to deliver telecom and Internet services to users.
- Research firm IDC will host a conference on Internet servers at the Ritz-Carlton in Half Moon Bay, Calif. on Aug. 1. IDC predicts that the server market will increase from $73 billion in 2001 to $101 billion in 2005, and the event will address the changes in the technology and the marketplace that will happen.
Monday, July 30
- Terra Lycos operates a series of Web sites and Internet portals. Per-share consensus estimate for the second quarter: loss of 12 cents.
- Charter Communications runs a cable network in the U.S. Per-share consensus estimate for the second quarter: loss of $1.14.
- Jupiter Media Metrix is a research firm that compiles traffic rates for Web sites. Per-share consensus estimate for the second quarter: loss of 32 cents.
- NetRatings also does Internet research and publishes reports on Web site usage. Per-share consensus estimate for the second quarter: loss of 4 cents.
- Macrovision makes security software to prevent the copying of videos and DVDs. Per-share consensus estimate for the second quarter: profit of 18 cents.
- KLA-Tencor makes manufacturing equipment for chip makers. Per-share consensus estimate for the fourth fiscal quarter: profit of 26 cents.
- Verizon Communications is a "baby" Bell phone company that operates in the Northeast. Per-share consensus estimate for the second quarter: profit of 77 cents.
- Perot Systems provides technology consulting and services to large businesses. Per-share consensus estimate for the second quarter: profit of 14 cents.
- Ingram Micro is a distributor of computer products. Per-share consensus estimate for the second quarter: loss of 3 cents.
- Priceline.com sells airline tickets, hotel rooms, and car rentals online. Per-share consensus estimate for the second quarter: profit of 1 cent.
- Williams Communications operates an optical telecommunications network in the U.S. Per-share consensus estimate for the second quarter: loss of 57 cents.
- Comcast runs a U.S. cable TV network. Per-share consensus estimate for the second quarter: loss of 31 cents.
- Global Crossing operates a worldwide optical telecom network. Per-share consensus estimate for the second quarter: loss of 84 cents.
- McLeodUSA is a start-up phone service carrier that competes with established "baby" Bell carriers. Per-share consensus estimate for the second quarter: loss of 32 cents.
- MP3.com runs a Web site where people can find and download music. Per-share consensus estimate for the second quarter: loss of 4 cents.
- Ashford.com is an e-commerce Web site that sells luxury items. Per-share consensus estimate for the first fiscal quarter: loss of 16 cents.
- Ask Jeeves is an Internet search site. Per-share consensus estimate for the second quarter: loss of 33 cents.
- Copper Mountain Networks makes DSL (digital subscriber line) equipment. Per-share consensus estimate for the second quarter: loss of 19 cents.
- Cheap Tickets sells airline tickets on the Internet as well as through the phone and retail outlets. Per-share consensus estimate for the second quarter: profit of 5 cents.
Tuesday, July 31
- Personal income shows the monthly percentage change in household income from the Commerce Department. Economists expect income to rise 0.2 percent in June, the same jump as in May.
- Consumer Confidence will be reported by the Conference Board for the month of July. This figure, measured by an index, represents consumer sentiment toward the economy. Analysts estimate the index will rise to 118.5 from June's 117.9.
- Construction spending tabulates the dollar amount of newly completed buildings in a month as reported by the Commerce Department. Economists expect spending to inch up 0.1 percent during July compared to a 0.3 percent increase in June.
- The National Association of Purchasing Management index tracks how many hard goods were purchased by purchasing managers. The NAPM index is expected to slip in July to 44.5 from the previous month's 44.7. Index values above 50 indicate an expanding economy, while values below 50 are indicative of contraction.
- Initial Claims refers to the number of people who filed for unemployment benefits each week as reported by the Department of Labor. Claims will be reported for the week of July 28.
- Unemployment rate is the percentage of unemployed adults, as estimated monthly by the Labor Department. This number is expected to tick up to 4.6 percent in July from 4.5 percent in June.
- Average workweek is the average number of hours worked per week in the private sector, as estimated monthly by the Labor Department. Economists expect the work week to hold steady at 34.3 hours in July, the same as June.
- Hourly earnings is the percentage change in hourly earnings in the private sector as estimated monthly by the Labor Department. Analysts expect earnings to rise 0.3 percent for the month of July, the same increase as June.
- Nonfarm Payrolls represents the change in total non-farm employment. This number is expected to fall by 50,000 in July compared to a 114,000 drop in June.
- The Non-manufacturing NAPM index tracks how many hard goods were bought monthly by purchasing managers in the services industry. Wall Street predicts the index will fall to 51.0 in July from June's 52.1.
- Vehicle sales figures will be released for the month of July by the auto industry. Analysts expect truck sales to fall to 7.4 million from 7.6 million in June, and forecast car sales to hold steady at 6.4 million.