On the Stockholm Stock Exchange, telecom manufacturer Ericsson will tear off the band-aid on Tuesday - in parallel with a long series of bank reports from the bigwigs on Wall Street. Then follows a massive flow of figures from listed companies Wednesday-Friday. The heavy tech companies on Wall Street are, as usual, a little late with their quarterly figures.
I believe in a good reporting season, the economy looks good based on leading indicators. This applies to both the US, China and Europe, says Lars Söderfjell, head of equities at the Bank of Åland.
In Europe, industry is doing well, he notes, and Swedish companies are benefiting from the development of data centers and the mining industry. In addition, the currency headwind against the dollar has eased. The only sector that is not looking so good is the European passenger car sector, he notes. There is fierce competition from China. There may also be a small, small concern that rising freight and energy prices may have found their way into companies' results, so that profitability is not quite as good as expected.
No profit warnings
But we haven't seen any profit warnings.
In the US, the semiconductor industry is doing very well, but things are not looking as bright for the big tech giants.
Nvidia has not delivered as well as other semiconductor companies.
For the Swedish stock market, he believes that reports will be fairly consistently positive. So far this year, OMXS30 has risen by around 10 percent. Perhaps some may wonder how the stock market can be so unaffected, when the world looks the way it does with crises, wars and conflicts. Lars Söderfjell also thinks that it may seem contradictory, but points to the strength of companies in adapting.
Adapts
If someone had said on New Year's Eve 2019 that we would be hit by a pandemic, war, tariffs and so on, we wouldn't have thought it would go well. But the profitability of the companies is positive, look at the earnings per share. We have underestimated the ability of the companies to adapt.
What he will keep an extra eye on during the reporting period are the future forecasts.
I will read the CEO's words carefully.
In Sweden, there are two sectors in particular that are important for the Swedish stock market, he notes.
"It's the workshops and banks. It's companies like Atlas Copco, ABB, Alfa Laval and Ericsson that are index-heavy. If something deviates from expectations for them, it affects the entire stock market," says Lars Söderfjell.
Facts: Then the reports come
Here are some of the companies reporting in the coming weeks
Tuesday 14 July: Ericsson, Avanza Bank, Balder, NCC, Peab, Norwegian, DNB Bank, Goldman Sachs, Bank of America, JP Morgan Chase & Co, Wells Fargo, Citigroup
Wednesday, July 15: Handelsbanken, SEB, Axfood, Castellum, Scandic Hotels, ASML Holding, Morgan Stanley, Johnson & Johnson, Blackrock
Thursday, July 16: Nordea, ABB, Atlas Copco, Investor, SBB, Tele2, Essity, Trelleborg, TSMC, Telenor, General Electric, Netflix
Friday, July 17: Swedbank, Volvo Cars, AB Volvo, Saab, Telia, Vattenfall, Electrolux, EQT, Husqvarna, Hemnet, Nobia, SKF, Apotea, Munters, Getinge, Betsson, Scandi Standard, Skanska, Evolution, Assa Abloy, Nordnet, Autoliv, Sandvik, Danske Bank, Yara International
Monday, July 20: Domino's Pizza
Tuesday, July 21: Boliden, MTG, Alfa Laval, Fortum, General Motors, Halliburton, Northrop Grumman
Wednesday July 22: Sinch, SSAB, Tieto Evry, Norsk Hydro, Equinor, Kone, AT&T, IBM, Tesla, Alphabet/Google
Thursday 23 July: Intrum, Stora Enso, Traton/Scania, Nokia, BNP Paribas, ST Microelectronics, Total Energies, Dassault Systemes, SAP, Intel
Friday July 24: Securitas, Volkswagen, American Express
