Plugged in… Big Tech has made a comeback this year, and Microsoft, Google, Meta, and Amazon are expected to keep the momentum going when they drop earnings this week. Microsoft and Google topped Q2 estimates with cloud sales up 20%+. Meta saw double-digit revenue growth for the first time since 2021, and Amazon had its best quarter since lockdown-era 2020. While tech's growth still lags historical averages, profits have improved after cost-cutting (including layoffs). Now analysts are eyeing AI initiatives and cloud strength to drive demand.
The swipe life… We’re not talkin’ Tinder. Visa and Mastercard will report after US retail sales growth smashed expectations last month as folks keep loading up their plastic. FYI: Visa and Mastercard earn a cut of every transaction. In July, Mastercard returned to profit growth as people splurged on trips and T. Swift concerts. In August, Americans’ credit-card debt hit a record $1T. On Friday, American Express reported a record quarterly profit, but the stock fell 5% after it boosted provisions for customer-debt defaults.