Motley Fool Money Earnings, Earnings, Earnings!
Jul 26, 2019
It’s a whirlwind of earnings insights! Alphabet and Starbucks shine with unexpected profit growth, while Amazon faces challenges. Facebook and Snap show surprising recoveries, exploring monetization and user engagement. The fast-food scene buzzes with impressive sales growth and international expansion. Plus, Mattel's collaboration with Blumhouse for a Magic 8-Ball film is a highlight. Finally, the group's take on economic trends and upcoming Federal Reserve strategies sets the stage for intriguing market forecasts.
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Impact of GDP on Fed Decision
- The U.S. economy grew 2.1% in the latest quarter, slightly ahead of expectations.
- This suggests the Fed may opt for a smaller interest rate cut of 25 basis points next week.
Factors Influencing Fed Decision
- Business spending was weak, likely due to concerns about tariffs and trade wars.
- The Fed considers inflation when adjusting rates, which is currently at 1.8%, below their 2% target.
Alphabet's Strong Q2 Performance
- Alphabet's Q2 profits and revenue exceeded expectations, driving a 10% stock increase.
- Revenue grew by 19%, and earnings per share increased by 21% after adjusting for a European Commission fine.