World Stock Watch

Earnings Season Heats Up: What to Expect in the Week Ahead

As we enter the final stretch of the third quarter, investors are gearing up for a busy week of earnings reports and economic data. With the Federal Reserve’s next meeting just around the corner, market participants are eagerly awaiting the latest insights into the state of the economy.

Housing Market in Focus

On the economic front, existing- and new-home sales reports will take center stage, providing a snapshot of the housing market’s health. Additionally, the latest durable-goods data will offer a glimpse into consumer spending habits.

Interest Rate Decision Looms

Meanwhile, all eyes will be on the Federal Open Market Committee as it prepares to make its next interest rate decision on November 7. With 90% of market participants expecting a 25 basis point cut, investors will be watching closely for any surprises.

Bank of Canada Expected to Cut Rates

North of the border, the Bank of Canada is expected to follow suit, with economists predicting a 50 basis point rate cut amid signs of a cooling economy.

Earnings Growth to Slow

As earnings season kicks into high gear, analysts are warning of tougher year-over-year comparisons, which could lead to slower growth rates. Despite this, aggregate earnings are expected to reach a new all-time high, with the energy sector facing some of the sharpest cuts in guidance.

Industrials Take Center Stage

This week’s earnings spotlight shines bright on the industrials sector, with heavy hitters like Tesla, Boeing, GE Aerospace, Honeywell International, and United Parcel Service set to report.

Earnings Calendar Highlights

Monday, October 21: Nucor and Logitech
Tuesday, October 22: General Electric, Philip Morris, Verizon, Texas Instruments, Lockheed Martin, General Motors, and 3M
Wednesday, October 23: Tesla

With so many major players reporting, investors will be glued to their screens, waiting for any signs of strength or weakness in the market. Will this earnings season live up to expectations, or will it fall short? Only time will tell.