Bulls appear to be taking control of the market, aided by strong economic growth prospects and loose monetary policy after signs accelerating.
It ended the week at a record, while the small cap index posted its eighth consecutive month of earnings – the longest run-up for this benchmark since 1995. This performance is quite remarkable and shows the strength of the economic recovery in the US after the COVID-19 pandemic.
The Fed has said it would tolerate an average inflation bandwidth around the 2% target until inflation remains stuck at a higher level. Inflation was largely below 2%, ahead of the latest data showing strong price increases. Some analysts now see that higher spending by both consumers and government is the main driver driving growth in the second half of the year.
US President Joseph Biden released his first full budget proposal last week outlining his ambitions to expand the size and scope of the federal government by more than $ 6 trillion in spending in the next fiscal year . Amidst this optimism, here are three large-cap stocks that we will be watching during the shortened trading of the upcoming week's holiday.
1. Zoom Video
Zoom Video Communications (NASDAQ 🙂 will report first quarter earnings for fiscal year 2022 after market closes on Tuesday June 1 Closed. Analysts expect $ 0.99 per share on sales of $ 907.61 million
The video communications platform leader had a great year during the pandemic, when home living and telecommuting requirements drove up sales significantly. Sales and earnings have been consistent each quarter and the company has continued to raise expectations.
In March, Zoom told investors that sales could increase by 43% in the current fiscal year, indicating that the pandemic has fueled demand for conferencing tools. is still going strong. But as global vaccination pushes gain momentum, it is not clear whether companies that did well during the pandemic would continue to experience rapid growth.
Shares of the San Jose, California-based company, after gaining 400% last year, have failed to impress investors this year. Trading at $ 331.53 at Friday's close, they were down 2% for the year.
2. Broadcom
The last major chipmaker to release revenue this current season is Broadcom (NASDAQ :). The company will report its fiscal 2021, second quarter results after the market closes on Thursday, June 3. Analysts expect an equity gain of $ 6.43 with projected revenues of $ 6.51 billion.
In the latest earnings report, investors will be keen to know if the company's current strategy, spearheaded by CEO Hock Tan – to grow through acquisitions and buy struggling software assets – is paying off.
Broadcom is one of the world's largest chip makers with industries spanning smartphone parts, major network equipment components, and semiconductors driving home Wi-Fi devices and set-top boxes.
About 90% of Broadcom's 2021 offering will come from customers, the company said in March, adding that the chipmaker had enough production from its outsourced suppliers to meet its customers' needs . Broadcom shares, which closed at $ 472.33 Friday, are up about 8% this year and about 65% in the past 12 months.
3. DocuSign
The electronic signature company, DocuSign (NASDAQ :), is another tough tech sector reporting its quarterly profits after the market closed on Thursday. Analysts see earnings per share of $ 0.28 on revenue of $ 438 million.
The San Francisco-based application software company experienced many of its digital services as the shift to remote working and social distancing prompted companies to seek digital signatures and manage their contracts electronically.
These trends helped establish DocuSign among Wall Street's biggest success stories for 2020, after stocks skyrocketed, behind Zoom Video and vaccine maker Moderna (NASDAQ :).
According to the company's CEO, Dan Springer, DocuSign is still in the early stages of growth in what he predicts is a $ 50 billion addressable market. DocuSign stock closed at $ 201.62 on Friday, down about 9% for the year.
