Apple, Netflix, Tesla, Microsoft and more big names to report earnings this week

ABC's Deirdre Bolton explains why this week's earnings is "a report card for corporate America", plus, how the latest U.S. COVID-19 numbers and vaccine rollout will impact the economy moving forward.
4:12 | 01/25/21

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Transcript for Apple, Netflix, Tesla, Microsoft and more big names to report earnings this week
The opening bell is about to ring on Wall Street and a few minutes stocks are mixed in the open as investors prepare for a busy week of earnings from some of the largest names in technology. Business correspondent here to Bolton joins me now with more deer track. You all this week's earnings a report card for corporate America what do you mean by that and what he watching for. That series and we get to see how these companies are selling how they're doing against their competitors whether or not it's attractive for investors to throw more money to work this is a huge week and there's more than 20% of S&P 500 companies reporting. More than 30% of Dow companies. Big names a lot of household names so apple Tesla Microsoft. Starbucks obviously not really a pure tech company that won that at lot of people know as well as McDonald's. So this really just tells investors hey this is how we're doing it you want to make a bet on us or not. A lot of investors very focused on this weekend of course when the Fed meeting as well. Lightly to signal keeping rates low for a long time why do we care. Because a lower rates is stimulus did it makes all borrowing cheaper so that means if I want a mortgage if I wanna house claim any kind of loan car loan. It's cheaper so that's great for consumers that's great for business as stand. And Deirdre while still high cove in nineteen numbers appear to have peaked in the US lots of fingers crossed that they keep moving in the right direction. But what could that mean for the economy going forward if we do again fingers crossed keep moving in the right direction here. Diners are. I had today and managing them bite out her managing the virus is the single most important elements to get our economy back on track no matter who you speak with whether it's economists investors. Hedge fund manager that every single person has the same opinion this is what counts the most if you look at all the jobs lost. The majority of them are related it's you the virus hits I'm talking about. Hospitality anything to you with hotels restaurants bars travel live event. So once this vaccine roll out is effective is efficient that changes everything. Bank of America put out a note saying that Americans have close to two trillion dollars collective Lee. In see things in this past year so that is representative of pent up demand so once this virus component. Is cracked once that piece of the puzzle is put in you have a lot of pent up wealth. That can go into the market second going to economy as we know what we collectively spending is two thirds of our economic output so. A lot of people have money they're ready to go and they just want to feel safe when they travel they want to feel safe when their dying when they're going for entertainment. That's really the biggest piece of the puzzle fan Deirdre what are you looking out for today's specifically are what what are investors watching passions. Well they are want Cheney news is we're talking about the virus. This UK variants and to what extent it needs to be really considered heavily when making investment decisions I spoke with one floor trader on named as a New York Stock Exchange this morning any say they definitely front and center. On the radar screen. So those headlines really do you move the markets and then of course a lot of optimism that president Biden is going to be able to get this stimulus program. In place as we have discussed at the size and the scope and the different components. So I am hearing from a lot of investors is that some of the market optimism that we've seen especially last week. Is quite frankly at bats that the Democrats will at least be able to get through if not the one point nine trillion dollar package at least in one point one trillion is what I'm hearing even on the lower ends. And that is seen as stimulus it again. More Americans with more money in their pockets means more spending that's great for our economy that's great for our companies. We hear better news in the future from their report cards a couple quarters from now. And hopefully we begin to trend a little bit higher to hand. Rent a lot of hope that Aaron we will take the hopeful but at least you're bald Monday morning how exactly it's not often we have Monday morning did you think you.

This transcript has been automatically generated and may not be 100% accurate.

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