In a week that has seen investor attention shift from the media space to North Korea, Thursday will bring us some earnings results from the tech sector that will be of particular interest to many investors.
In the morning, Blue Apron (APRN), the meal-kit delivery company, will report its first quarterly earnings since going public in late June. Shares of the company are down almost 40% since this debut, but rallied 7% during the day on Wednesday ahead of results.
During the first quarter of this year, Blue Apron reported a loss of $52.2 million dollars on revenue of $244.8 million. Analysts expect the company’s loss per share to hit $0.30 with revenue totaling $235.8 million.
After the bell, earnings from Snapchat parent company Snap Inc. (SNAP) should be the highlight, with investors focused on the company’s user growth, which disappointed during its last report, which was the company’s first since going public.
According to data from Bloomberg, Wall Street is looking for an adjusted loss per share of $01.5 on revenue of $185.8 million.
Also reporting on Thursday will be Nvidia (NVDA), Yahoo Finance’s company of the year in 2016 and a stock that while not officially being a member of the FAANGs that have driven the market, is no-doubt a market leader this year.
The chipmaker has seen shares rally 70% in 2017 and the stock is up about 400% since the start of the 2016. Wall Street is looking for the company to report adjusted earnings per share of $0.82 on revenue of $1.96 billion.
On the economic calendar, the highlight on Thursday will be the weekly report on initial jobless claims, which are near their lowest level ever. This report tracks first-time filings for unemployment insurance.
Overall, expect investors to continue to monitor any news on the tensions between North Korea and the Trump administration, though as Yahoo Finance’s Sam Ro wrote on Wednesday this story has for years been ignored by markets.
“For decades, complacency has been the ‘right trade’ when it comes to North Korea,” Goldman Sachs analysts said on Wednesday.
“More often than not, market participants have been rewarded for fading negative price moves rather than hedging them. Our sense is that investors have grown comfortable with the view that geopolitical tensions invariably result in diplomatic talks, in which case the right trade is to buy any dips. The result is a market psychology that is relatively resistant to the pricing of geopolitical risk.”
And while stocks were in the red on Wednesday, a late-day rally saw losses end up being far from noteworthy. Since Trump’s election, the U.S. stock market has seen a broad, durable rally and over the last few weeks in particular it has almost felt like stocks have gone up every day (the Dow, in fact, rose for ten straight sessions through Monday).
And while stocks usually do go up, they also go down.
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Myles Udland is a writer at Yahoo Finance. Follow him on Twitter @MylesUdland
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