We are right in the thick of another corporate earnings season, and this week, the spotlight is on technology icon Apple, which reports results for its fiscal second quarter Tuesday.
Once the brightest star in the U.S. stock market, Apple saw shares slide more than 40% from an all-time high in September of last year, with Wall Street disappointed that products like the iPhone 5 have not been as game-changing and revolutionary as previous Apple devices were.
More bad news may be coming Apple’s way this week. The Cupertino, Calif.-based company is projected to log its biggest second-quarter sales numbers, but it is also expected to record a decline in profit, the first time it will do so in 10 years.
If Apple’s quarterly results are indeed underwhelming, it could trigger a broader slump in the market, which has become more volatile in recent weeks.
Another key piece of market-moving data to look out for this week is Friday’s release of the first estimate of U.S. GDP growth for the January-to-March period.
Expectations are high, with economists expecting first quarter GDP growth to improve from the previous quarter’s .4% to 3%.
According to a weekly report from BNP Paribas, the source of economic strength in the first quarter was strong growth in consumer spending.