Reuters Insider - U.S. Day Ahead: Facebook reports as regulators close in on a deal with the tech giant
24/07/2019 02:53
Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=0_a3drdbor&referenceId=0_a3drdbor&pageId=ReutersNews Source: Reuters Insider Description: Facebook reports quarterly earnings as the Federal Trade Commission inches closer to an expected $5 billion settlement with the company over its privacy practices. Plus, Boeing and Caterpillar also release results. Short Link: https://tmsnrt.rs/2JYAsjP Video Transcript: Welcome to your day ahead. I am Leah Duncan. Facebook reports as regulators appear close to reaching a settlement with the company. But first up, Caterpillar reports before the market opens. Broker Jefferies is looking for results to meet or slightly beat expectations. It is watching margins closely in part due to increasing costs. Jefferies points out that management expressed concerns about spending on digital growth initiatives and manufacturing during the conference call after the first quarter earnings. Investors will also be listening for any comments on the impact of tariffs. The stock has climbed 9% this year. Jefferies has a hold rating and a $135 price target. Next up, profit and sales seen sliding at Boeing. Leaving on the 737 MAX which remains grounded following two fatal crashes. Boeing said last week it would take an after-tax charge of almost $5 billion in the second quarter because of the this. The aerospace company says it assumes the 737 MAX will return to service beginning early in the fourth quarter, though it cautioned the exact timeline could shift as it has in recent weeks. The stock has gained 15% in 2019. And Facebook could face a $5 billion charge of its own as part of an agreement with the Federal Trade Commission. The settlement could be announced Wednesday, which is when the tech giant releases quarterly results. The FTC has been investigating Facebook’s handling of user data while Congress has been looking into the company’s plans for its Libra cryptocurrency. Advertisers, though, continue to pay up to reach Facebook users. The stock has soared almost 50% since January. That is your day ahead. You can watch more videos online at Reuters.com. I’m Leah Duncan. This is Reuters