The US economy grew faster than expected in the last quarter of 2022, but the mixed GDP report also showed consumer spending that was slower than forecast, suggesting that the burden of rising prices and higher borrowing costs will continue to pressure demand as this year progresses.
Following the ongoing trend, investors will look to companies reporting earnings next week to provide further insight into their expectations surrounding the impact of worsening economic conditions on their target customers. While the iPhone maker has so far steered clear of announcing layoffs like its big tech peers, its fiscal first-quarter revenue will be marred by supply-chain issues in China.P 500 companies have reported so far this earnings season, with almost half beating sales estimates and over 70 per cent exceeding earnings consensus.
Next week, Big Tech — including Apple, Alphabet and Meta Platforms — will be expected to offer details on their growth outlook, particularly in light of the recently announced layoffs that slashed more than 52,000 jobs and ongoing supply chain hiccups. Intel’s shares slumped on Friday on one of its most dire forecasts, fuelling worries over chipmakers’ earnings prospect ahead of NXP Semiconductors’ report due next week. reports after the close. Overshadowed by weakening vehicle demand, the supplier of chips to the automotive industry is expected to post the slowest quarterly sales growth in at least two years, according to Bloomberg consensus.