Week Ahead on Wall Street: Tech Titans

Trick or Treat

We’re in the midst of earnings season, a time when quarterly company results have the market in a tight grip. So far, over 40% of S&P 500 constituents have reported, with a big chunk of that coming last week. And yet, despite both profits and revenue beating consensus estimates by around 6% and 1%, respectively, so far, the S&P 500 has actually fallen. So what gives?

A big part of the gloomy market mood has been worsening expectations for the future. Companies that have reported have seen next quarter earnings estimates get revised down, and importantly, the same happened to companies that have yet to report.

That backdrop raises the stakes for this week’s earnings: 173 companies will report results, nearly as many as the three prior weeks combined, including five mega-cap tech companies (Alphabet, Apple, Microsoft, Meta, and Amazon). Their guidance on AI investments, revenue streams, and competitive landscape could have a big impact on whether recent market choppiness continues, or if the S&P 500 makes a run for 6,000 points for the first time ever.

Economic and Earnings Calendar

Monday

• October Dallas Fed Manufacturing Activity: This is the Federal Reserve Bank of Dallas’s survey of manufacturing executives in the region on business conditions and their outlook.

• Earnings: Brown & Brown (BRO), Cadence Design Systems (CDNS), CenterPoint Energy (CNP), Ford (F), F5 Networks (FFIV), ON Semiconductor (ON), Regency Centers (REG), SBA Communications (SBAC), Welltower (WELL), Waste Management (WM)

Tuesday

• September Wholesale and Retail Inventories: Wholesalers and retailers often operate as intermediaries for the sale of manufactured products, serving as a key part of the goods supply chain.

• August FHFA House Price Index: This is a broad measure of single-family house prices released by the Federal Housing Finance Agency.

• August S&P CoreLogic Case-Shiller Home Price Index: This is a private sector measure of national home prices. After a period of slight decline in the second half of 2022 and early 2023, the index returned to growth and is now at record highs.

• September Job Openings: A key measure of business demand for labor is the number of job openings, since reducing openings is easier and preferable to layoffs.

• October Conference Board Consumer Confidence: How consumers feel about economic conditions affect their spending habits. This survey places a particular focus on job availability and the state of the labor market.

• October Dallas Fed Non-Manufacturing Activity: This is the Dallas Fed’s survey of services executives in the region on business conditions and their outlook.

• Earnings: Advanced Micro Devices (AMD/), American Tower (AMT), Boston Properties (BXP), Chubb (CB), Chipotle Mexican Grill (CMG), Caesars Entertainment (CZR), DR Horton (DHI), DaVita (DVA), Electronic Arts (EA), Ecolab (ECL), Edison International (EIX), EQT (EQT), Essex Property Trust (ESS), Extra Space Storage (EXR), FirstEnergy (FE), FMC (FMC), First Solar (FSLR), Corning (GLW), Alphabet (GOOGL), Hubbell (HUBB), IDEX (IEX), Incyte (INCY), Leidos Holdings (LDOS), Masco (MAS), McDonald’s (MCD), Mondelez International (MDLZ), MSCI (MSCI), ONEOK (OKE), Pfizer (PFE), Phillips 66 (PSX), PayPal (PYPL), Qorvo (QRVO), Royal Caribbean Cruises (RCL), Republic Services (RSG), Stanley Black & Decker (SWK), Stryker (SYK), Sysco (SYY), Visa (V), Zebra Technologies (ZBRA)

Wednesday

• October ADP Employment Report: This survey, usually released a day or two before the official government jobs report, offers insight into private sector employment trends.

• 3Q GDP First Estimate: The primary measure of economic activity in the United States, which is measured as total expenditure on a country’s goods and services.

• Weekly Mortgage Applications: Mortgage activity gives insight on demand conditions in the housing market.

• Earnings: AbbVie (ABBV), Arch Capital Group (ACGL), Automatic Data Processing (ADP), Aflac (AFL), Allstate (ALL), Amgen (AMGN), American Water Works (AWK), Bunge Global S.A. (BG), Biogen (BIIB), Booking Holdings (BKNG), Caterpillar (CAT), CDW (CDW), CF Industries Holdings (CF), CH Robinson Worldwide (CHRW), Clorox (CLX), Cognizant Technology Solutions (CTSH), Dayforce Inc (DAY), eBay (EBAY), Everest RE Group (EG), Equinix (EQIX), Equity Residential (EQR), Exelon (EXC), Federal Realty Investment Trust (FRT), Fortive (FTV), GoDaddy (GDDY), GE HealthCare Technologies Inc (GEHC), NortonLifeLock (GEN), Global Payments (GPN), Garmin (GRMN), Hess (HES), Humana (HUM), Invitation Homes (INVH), Illinois Tool Works (ITW), Kraft Heinz (KHC), KLA-Tencor (KLAC), Eli Lilly (LLY), Mid-America Apartment Communities (MAA), MetLife (MET), Meta Platforms, Inc. (META), MGM Resorts International (MGM), Martin Marietta Materials (MLM), Monolithic Power Systems (MPWR), Microsoft (MSFT), NiSource (NI), Otis Worldwide (OTIS), Paycom Software (PAYC), Prudential Financial (PRU), Public Storage (PSA), Starbucks (SBUX), Smurfit WestRock (SW), Bio-Techne (TECH), TE Connectivity (TEL), Trane Technologies (TT), UDR (UDR), Vulcan Materials (VMC), Verisk Analytics (VRSK), Ventas (VTR), Zimmer Biomet Holdings (ZBH)

Thursday

• October Challenger Job Cuts: The firm Challenger, Gray & Christmas tracks the number of layoff announcements each month by sector.

• 3Q Employment Cost Index: This is the most comprehensive measure of worker compensation, including wages, bonuses, benefits and more.
September Personal Income and Spending: These numbers give insight into how Americans are doing, which is important since consumer spending accounts for about two-thirds of economic growth in the United States.

• September Personal Consumption Expenditures Price Index: The Fed targets this inflation measure for its price stability mandate and believes PCE to be the best measure of consumers’ spending habits.

• Weekly Jobless Claims: This high frequency labor market data gives insight into filings for unemployment benefits. Jobless claims have continued to show a labor market that remains strong despite having cooled.

• Earnings: Apple (AAPL), AES (AES), Amcor PLC (AMCR), Ametek (AME), Amazon (AMZN), Aptiv (APTV), Ball (BALL), Bristol-Myers Squibb (BMY), BorgWarner (BWA), Cigna (CI), Comcast (CMCSA), CMS Energy (CMS), ConocoPhillips (COP), Camden Property Trust (CPT), Coterra Energy Inc (CTRA), Estee Lauder Companies (EL), Eastman Chemical (EMN), Erie Indemnity (ERIE), Eaton Corp (ETN), Entergy (ETR), Generac Holdings (GNRC), WW Grainger (GWW), Huntington Ingalls Industries (HII), Intercontinental Exchange (ICE), IDEXX Laboratories (IDXX), Intel (INTC), International Paper (IP), IQVIA Holdings (IQV), Ingersoll Rand (IR), Juniper Networks (JNPR), Kellogg (K), Kimco Realty (KIM), Linde PLC (LIN), Alliant Energy (LNT), Mastercard (MA), Altria Group (MO), Merck & Co (MRK), Norwegian Cruise Line Holdings (NCLH), Parker-Hannifin (PH), Quanta Services (PWR), Regeneron Pharmaceuticals (REGN), Southern Company (SO), Teleflex (TFX), Uber (UBER), Vici Properties (VICI), WEC Energy Group (WEC), Willis Towers Watson Public (WTW), Xcel Energy (XEL), Xylem (XYL)

Friday

• October Employment Situation Summary: This monthly blockbuster release from the Labor Department gives a comprehensive look at employment, wages, and hours worked in the previous month.
September Construction Spending: Construction data is a leading indicator of business activity.

• October ISM Manufacturing PMI: This index from the Institute for Supply Management tracks how purchasing managers across the manufacturing sector feel about the business environment.

• October Wards Total Vehicle Sales: Cars are a big ticket item for consumers, so underlying vehicle sales trends can help shine a light on demand for durable goods.

• Earnings: Airbnb (ABNB), Cardinal Health (CAH), Cboe Global Markets (CBOE), Church & Dwight (CHD), Charter Communications (CHTR), Chevron (CVX), Dominion Energy (D), LyondellBasell Industries (LYB), Monster Beverage (MNST), Motorola Solutions (MSI), PPL (PPL), Rockwell Automation (ROK), Super Micro Computer (SMCI), T Rowe Price Group (TROW), Waters (WAT), Exxon Mobil (XOM)

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