Interactive Investor

Three-day trading offer on US shares

26th April 2023 10:04

by Jemma Jackson from interactive investor

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interactive investor launches offer as 2023 earnings season kicks off.

US flag held aloft 600

It’s that time of year again! First-quarter earnings season is in full swing in the US and, with several big names set to report in the coming days, interactive investor is once again marking the occasion with a three-day trading offer on US shares.

US earnings season offers a chance for investors to check the pulse of corporate America while potentially benefiting from a period when there can be higher than usual share price volatility.

From today ii, the UK’s second-largest investment platform for private investors, has removed trading fees (usually £5.99 to buy and sell) on all US shares executed within the offer period of 26-28 April 2023 inclusive. ii investors can make the most of this offer online and via the mobile app. Further details below, and terms apply, see below.

What you get with the offer:

This three-day trading offer applies to all US stocks bought and sold on the ii website and mobile app between 2.30pm BST on 26 April 2023 and 9pm BST on 28 April 2023. Terms apply, see notes to editors.

During the busy earnings period, investors’ gaze will be turned on Meta Platforms Inc Class A (NASDAQ:META), parent company of Facebook and WhatsApp, as well as on Inc (NASDAQ:AMZN), Pinterest (NYSE:PINS), Aon Class A (NYSE:AON), and others as companies report on earnings and divulge plans and progress.

Victoria Scholar, Head of Investment, interactive investor, explains: “US first-quarter earnings are front and centre this month, allowing investors to glean insights into the strength of corporate America.

“Typically, earnings season provides investors with an opportunity to seize on the bout of higher-than-average share price volatility.

“The US economy is battling with macroeconomic headwinds including the backdrop of inflation, turmoil in the banking sector, rising interest rates from the Federal Reserve, and the threat of recession.

“However, after last year’s US dollar strength which hampered overseas earnings for some of the biggest companies stateside, the greenback’s recent depreciation, down nearly 3% against the pound year-to-date, could provide a tailwind to US earnings this year.”

Managing expectations

Scholar adds: “So far, US earnings have enjoyed a number of upside surprises, as well as some big-name disappointments.

“In the financial sector, JPMorgan Chase & Co (NYSE:JPM) and Morgan Stanley (NYSE:MS) outpaced analysts’ expectations, partly thanks to stronger net interest margins and better-than-expected trading performances. However, The Goldman Sachs Group Inc (NYSE:GS) struggled on the back of weak consumer loans and softer bond trading.”

So, who’s on the roster in the new few days?

Meta, parent company of Facebook and WhatsApp, has seen its share price rocket almost 70% year to date after the sharp declines of 2022. Might there be more to come once it releases its earnings results on 26 April? Staff at the tech conglomerate are bracing for another round of potential layoffs in May (following cuts in November last year and earlier this month), a move analysts are pinning on slowing ad revenue.

Meanwhile, Amazon is expected to report the following day, on 27 April. CEO Andy Jassy revealed only a fortnight ago in his annual shareholder letter that he’d spent recent months taking a “deep look across the company, business by business” and reflecting on numerous “simultaneous challenges” in the last year. Nevertheless, Jassy said he feels “optimistic and energised by what lies ahead”.

Elsewhere, whether the force remains with Apple Inc (NASDAQ:AAPL) – up by almost a third year to date – will be revealed next week when the tech giant plans to release its second fiscal quarter earnings results on 4 May. The company missed expectations on sales, revenue, and profit on several lines when it reported its holiday quarter earnings in February. How will it fare this time?

Teslashares are up around 50% year to date, rebounding from a torrid 2022.

Why investors shouldn’t overlook overseas markets

Lee Wild, Head of Equity Strategy, interactive investor, says:Broadening your investment horizons geographically can be a powerful diversifier and help investors access growth outside of their home market.

“The US is home to some of the large technology companies, for example, which UK investors don’t have access to in their home market. None of us have a crystal ball, and earnings continue to give us a mixed picture, but investors have a breadth of choice at their fingertips.

“It’s not just household tech names that many of us have become familiar with. The US is the world’s largest market, with the broadest choice and plenty of hidden gems.”

Multi-currency offering at ii

interactive investor customers can hold cash in up to nine foreign currencies in their SIPP or trading account. This means customers can avoid currency conversion charges on every transaction.

Investments can go up or down and you could get back less than you invest. The value of international investments may be affected by currency fluctuations which might reduce their value in sterling.

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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