What You Need To Know Wednesday: Apple, Boeing, Facebook And The Fed
Facebook ( FB ), PayPal ( PYPL ) and Boeing ( BA ) report earnings on Wednesday. And with the market digesting Apple ’s ( AAPL ) earnings miss and a Federal Reserve decision on interest rates, it could be an interesting session. Here’s what you need to know: Facebook Facebook is expected to report earnings of 62 cents a share on revenue of $5.25 billion, both up 48% from last year, when it issues results after the close. Investors will pay close attention to the social networking giant’s ad revenue growth and its number of monthly active users, which jumped 14% to 1.6 billion last quarter. They’ll also want any clues about Facebook engagement amid reports that users are posting less and that younger people trend toward Snapchat. Shares breached support at the 50-day line Tuesday after finding support there the prior two sessions. The stock is now about 7% below a cup-with-handle buy point at 117.09. PayPal PayPal also reports after the close. Analysts project that earnings will grow 20% to 35 cents a share while revenue rises 19%to $2.5 billion. PayPal is working with Facebook, Starbucks ( SBUX ) and other big brands to help make customer transactions more seamless. PayPal stock is trading just below buy range from an alternate entry at 40.03. It’s also trading 6% below its all-time high as it works on a larger consolidation pattern. Boeing Boeing reports in the morning. Analysts see EPS falling 7.6% to $1.82 and revenue down 3.2% to $21.43 billion. Watch for comments on pricing for its commercial jets as low fuel prices allow airlines to fly older planes and seek discounts on new ones. Boeing stock is trading 11% below its 52-week high and hasn’t closed above its 200-day line this year. Fed Meeting A two-day Fed meeting ends tomorrow. The widespread expectation is for rates to remain unchanged for now, but Fed-watchers will pay close attention for clues about when the next rate hike may be. Apple Apple’s disappointing Q2 earnings report after the close Tuesday is likely to have a negative impact on the market. The consumer tech giant’s EPS fell 19% to $1.90 while revenue dropped 13% to $50.6 billion. Both missed Wall Street views, and so did Apple’s Q3 revenue outlook. Apple shares fell 8% in late trading Tuesday, with iPhone chip suppliers also selling off.