From Nasdaq:

After a week of strong trading activity, the bullish market has been driven by cooling inflation, strong earnings and a resilient economy. The S&P 500 closed above 5,000 for the first time, with stocks up 6% since the start of the year and 23% over the past 12 months. Friday’s S&P 500 rose 0.57% to end at 5,026.61, with the Nasdaq Composite rallying 1.25% to close at 15,990.66. The Dow Jones Industrial Average, however, slipped 54.64 points, or 0.14%, to end Friday’s session at 38,671.69. For the week, the Dow ended flat. The S&P added 1.4%, while the Nasdaq gained 2.3%. The market remains optimistic that a recession is off the table. Investors continue to watch strong economic news and await the consumer-price index for January, which will be released next week on Tuesday.

In the wake of the S&P 500’s gains, investors are looking ahead to the earnings releases of several high-profile companies. Next week’s earnings reports include Airbnb (ABNB), reporting Tuesday after the close; Cisco (CSCO), reporting Wednesday after the close; and Coinbase (COIN), reporting Thursday after the close. Airbnb expects to earn 62 cents per share on revenue of $2.17 billion. Cisco expects to earn 84 cents per share on revenue of $12.71 billion. Coinbase expects to earn 25 cents per share on revenue of $811.47 million.

For Airbnb, expectations are high based on the company’s strong performance amid inflation and an uncertain economy. Since Airbnb has been able to grow its revenue at a solid pace and its earnings increased 26% year over year, if it can produce better than 20% bookings growth for the just-ended quarter, its shares could rise and break out of their trading pattern.

Cisco’s stock performance, which has lagged behind the S&P 500’s, has not accurately reflected the company’s qualities and strengths. Cisco has been focused on mergers and acquisitions while executing stock buybacks to enhance its cloud, network performance monitoring, and broadband network monitoring capabilities. Investors are hopeful that Cisco will show growth in its pivot toward software and subscription businesses in Wednesday’s report.

Despite trading at some 50% below its all-time high, Coinbase has the potential to bounce back in 2024 due to factors such as the SEC’s approvals of ETFs. Coinbase’s commitment to regulatory compliance and transparency positions the company as a leading entity for institutional investors. Assuming the company can deliver a top- and bottom-line beat in Thursday’s report, along with confident guidance, Coinbase could set itself up for a banner year in 2024.



Read more: Earnings to Watch (ABNB, COIN, CSCO)