What to Watch in the Week Ahead and on Monday, October 28
The Day Ahead is an email and PDF publication that includes the day's major stories and events, analyses and other features. To receive The Day Ahead, Eikon users can register at DAY/US. Thomson One users can register at RT/DAY/US. All times in ET/GMT
ON MONDAY
Ford is expected to report higher third-quarter revenue and profit, aided by sales of its commercial vehicles.
Vans parent VF Corp is expected to post a decline in second-quarter revenue, hurt by choppy demand for its apparel and footwear. Investors will look for comments on demand, the impact of challenges in wholesale and annual forecasts.
CenterPoint Energy is expected to report a fall in third-quarter profit, due to storm recovery and restoration costs.
Wireless tower operator SBA Communications is expected to report a drop in third-quarter revenue, hit by weak demand for new site leasing activity.
Insurance brokerage Brown & Brown is expected to post a higher Q3 profit, driven by higher commissions and fees along with robust returns on its investments.
Bank of Canada Governor Tiff Macklem will be attending a fireside chat at The Logic Summit conference in Toronto. (1230/1730)
REST OF THE WEEK
Big Tech earnings may take the spotlight in a jam-packed week as the Nasdaq heavyweights report their results. Alphabet will report results for its third quarter on Tuesday. Investors will be looking for growth in its advertising search business, AI cloud as well as any commentary about potential cost savings and capital expenditure from the company’s new CFO. Separately, Facebook-parent Meta Platforms is expected to report an 18% jump in third-quarter revenue on Wednesday. Investors are looking for commentary on how the company plans on further implementing AI technologies in advertising and boosting growth return on investment for advertisers.
On Wednesday, Microsoft is expected to report a rise in quarterly revenue as its Azure cloud business sees strong demand from enterprises doubling down on AI technologies. Investors will be watching for the company's expectations for cloud revenue growth, margin pressures on heavy capital expenditures and progress on monetizing AI. Separately, analysts expect Apple to report a 5.5% growth in quarterly revenue for its fourth fiscal quarter when it reports its results on Thursday. Wall Street expects guidance on how the company views demand for its AI-infused iPhone 16 series and future AI products. Meanwhile, Amazon.com is expected to report a jump in quarterly revenue powered by robust growth in its cloud services segment thanks to strong demand driven by AI on Thursday. Investors will be keeping an eye out for signs of strength in the company's retail side of the business, as well as its commentary on capital spending for the year and benefits from its ad-supported Prime Video service.
On the U.S. economic front, on Wednesday, the Commerce Department's Bureau of Economic Analysis' advance estimate of the gross domestic product (GDP) is expected to show that the economy grew at an annualized rate of 3.0% in the third quarter. On Thursday, the same department is set to report that the personal consumption expenditures (PCE) price index probably nudged up 0.2% in September, compared with a 0.1% gain in August. On an annual basis, the PCE price index likely rose 2.1% in September, after rising 2.2% the month before. Meanwhile, the September core PCE price index is expected to have increased 0.3%, following August's 0.1% gain. Annually, the core PCE price index likely edged up 2.6%. Additionally, personal income likely grew 0.3% last month, after a 0.2% gain in August. A slew of employment figures from the Labor Department will also be on the radar. On Friday, the department's monthly employment report is expected to show that the economy added 123,000 jobs in October after a growth of 254,000 jobs in September. Meanwhile, the unemployment rate in the country is expected to have remained unchanged at 4.1% in October. For the same month, private payrolls probably climbed by 92,000 jobs, after adding 223,000 jobs in September. On Tuesday, the Job Openings and Labor Turnover Survey, or JOLTS report, is expected to show 7.990 million job openings in September, down from 8.040 million in August. On Thursday, a report will show that weekly initial jobless claims for the week ending October 26 probably climbed to 233,000. Additionally, on Wednesday, the ADP national employment report is expected to show that private employment likely grew by 115,000 jobs in October, after advancing by 143,000 jobs in the month before. On Tuesday, the Conference Board's consumer confidence index is expected to show a reading of 99.3 in October, up from 98.7 in September. Additionally, the Institute for Supply Management (ISM) on Friday is expected to report that the country's manufacturing PMI likely edged up to 47.6 in October from 47.2 in the prior month.
Chevron is set to report third-quarter earnings on Friday before the bell, where investors will focus on the impact of commodity price volatility, production outlook and updates on its ongoing tussle with Exxon over Hess' Guyana assets. Additionally, oil producer Hess plans to release its third-quarter earnings on Wednesday. Analysts are forecasting per share net of $2.42, up from $1.64 in the same period a year ago.
Investors will also look at Exxon Mobil as it reports its third-quarter results on Friday. Meanwhile, ConocoPhillips is set to report third-quarter earnings on Thursday before the bell. Investors will be looking for impact and comments on commodity price volatility, upcoming election impact, gas prices, and M&A.
Intel will report results for its third fiscal quarter on Thursday. Investors will focus on its loss-making foundry business and CEO Pat Gelsinger's plans to turn the struggling chipmaker around. Separately, AMD will report results for its third fiscal quarter on Tuesday. Investors will focus on indications of end-market demand for the PC industry and traction for AMD’s AI data center chips.
Caterpillar is expected to see a fall in third-quarter profit when it reports its results on Wednesday. Investors will be looking for comments on the demand environment.
Starbucks will announce fourth-quarter results after market close on Wednesday. Following the outlook suspension and preliminary results release, investor focus will be on comments from new CEO Brian Niccol on the longer-term strategy to fix issues at the coffee chain.
McDonald's is set to report a modest revenue rise in its third-quarter results on Tuesday as the burger chain grapples with weak spending from its low-income customers in the U.S. as well as tepid sales in China. Investors will look for further clarity on any impact on sales from the recent E. coli outbreak in some U.S. states and how the management plans to navigate the incident. Holiday demand forecast and further promotional measures will also be in focus. Separately, Chipotle is expected to post a jump in third-quarter revenue after market close on Tuesday on steady demand for its rice bowls and burritos from its affluent customers. Investors will watch for any change in strategies with new CEO Scott Boatwright settling in, comments on pricing, menu innovation and holiday demand forecast. Additionally, Kraft Heinz is expected to post a decline in third-quarter revenue on Wednesday as the packaged food maker faces tepid demand for its snacks and meal kits. Investors will focus on comments around a potential divestiture of its Oscar Mayer business which has attracted bidders and strategies to aid a demand recovery in the U.S.
Obesity and diabetes drugmaker Eli Lilly will report third-quarter results on Wednesday before markets open. Investors are focused on the performance of its widely used drugs Mounjaro and Zepbound, as well as expansion updates for their manufacturing capacity. Focus will also be on any changes to forecast and updates around its future obesity drug pipeline. Separately, Regeneron is expected to give its third-quarter results on Thursday. Investor focus will be on the performance of the drugmaker's eczema drug and eye drug Eylea which is facing competition from biosimilars.
Drugmaker Pfizer is expected to report third-quarter results on Tuesday before markets open. Investors will keenly watch the performance of its cancer drugs acquired through the $43 billion Seagen deal and any changes to its outlook for COVID products. The focus will also be on comments around engagement with activist hedge fund Starboard. Meanwhile, Biogen will report third-quarter results before markets open on Wednesday. Investors will look out for progress on the company's cost-cutting efforts and the performance of its newly launched treatments, including the Alzheimer's disease drug Leqembi.
Cigna is set to report its third-quarter results on Thursday before markets open. The focus will be on changes to the health insurer's full-year profit forecast and comments regarding the demand of medical services which have been weighing on its costs. Separately, insurer Arch Capital is scheduled to report its third-quarter earnings on Wednesday. Analysts expect lower profits as higher costs offset a massive jump in premiums and investment returns.
Payments processor Mastercard is scheduled to report its third-quarter earnings on Thursday. Analysts expect higher profits and higher revenue, but investors will scrutinize the report for any signs of a spending slowdown, especially after American Express' results. Meanwhile, Visa is poised to report a higher fourth-quarter profit on Tuesday thanks to consumer spending strength. Investors will closely watch out for commentary on the lower-end customers and spending trends in APAC. Additionally, PayPal is expected to report higher third-quarter revenue on Tuesday, boosted by resilient consumer spending, with analysts and investors focusing on the holiday spending outlook and management's efforts to reduce costs and improve margins.
Uber is expected to report an 18% rise in third-quarter revenue and adjusted core earnings of $1.64 billion on Thursday. Investors are looking for commentary on how it plans to invest to boost growth and further diversify its businesses.
Tobacco giant Altria will on Thursday publish its third-quarter results. The Marlboro maker has been looking to gain market share in smoking alternatives like vapes and nicotine pouches, but has faced challenges from illicit trade.
Coinbase is expected to post a third-quarter profit on Wednesday compared to a year-ago loss. Easing regulatory hurdles has facilitated robust trading in the cryptocurrency sector, translating to an increase in the transaction fees of the world's largest crypto exchange. Separately on Wednesday, Robinhood is expected to swing to a profit in Q3 compared to a loss a year ago, bolstered by higher transaction-based revenue.
Global grains merchant Bunge Global will report third-quarter results on Wednesday, amid low crop prices and rising supplies available to the company for processing and trading. Investors will be watching for any updates on the company's pending acquisition of grain handler Viterra, a transaction that Bunge had aimed to close by mid-2024 and which has come under antitrust scrutiny in Canada and Europe.
JetBlue is expected to report a smaller third-quarter loss when it reports its results on Tuesday. Investors will be looking for comment on the pricing environment and any updates to its cost-savings program.
Videogame platform Roblox is expected to report a sharp rise in third-quarter bookings on Thursday, as its virtual worlds benefit from strong in-game spending. Investors will be looking out for additional commentary on the Hindenburg short-seller report.
Utility firm Dominion Energy, on Friday, is expected to report a rise in third-quarter profit, driven by higher demand for power. Investors will be on the lookout for commentary on potential agreements with data center operators and updates on it recently announced nuclear reactor deal with tech giant Amazon. Separately, natural gas producer EQT Corp is expected to report a fall in third-quarter profit on Tuesday, hurt by a deep decline in natural gas prices. Investor focus will be on management's commentary on production curtailments and commodity prices. Additionally, on Wednesday, NiSource is expected to report a fall in third-quarter profit as higher costs weigh on the electric and gas utility. Investors will look out for commentary on agreements with big industrial customers including data center operators.
Estee Lauder is expected to post a fall in first-quarter sales on Thursday, mainly due to weak consumer demand in China as well as in Asia travel retail channels. Investors will look out for comments on consumer demand in the US, new product launches, price increases and its ongoing profit recovery plan.
Comcast is expected to report a rise in revenue in the third quarter on Thursday, driven by strong performance at its studio business. Separately, Charter Communications is expected to report a rise in revenue in the third quarter on Friday, helped by strong advertising sales.
Royal Caribbean is expected to post a rise in third-quarter revenue on Tuesday, driven by strong customer demand for cruises and on-board spending on spa and restaurants. Investors will look out for comments on fuel prices, customer demand for the holiday season and the impact of Hurricane Milton.
Lazard is expected to report a surge in third-quarter profit on Thursday, driven by a recovery in investment banking, mirroring a trend among larger Wall Street rivals.
KLA Corp is expected to report higher first-quarter revenue on Wednesday, driven by growing demand for its chipmaking equipment powered by AI boom. Separately, Equinix is expected to report higher third-quarter revenue on Wednesday, as AI boosts demand for its data center services.
DoorDash is expected to post a rise in third-quarter revenue on Wednesday, driven by its efforts to expand beyond its restaurant delivery business in the U.S. and into categories such as grocery and alcohol. Investors will look out for comments on delivery costs, new partnerships and a revision to forecasts.
Canadian oil and gas producer Cenovus Energy is expected to post a fall in third-quarter profit due to lower production as a result of planned maintenance activities. Investors will be on the lookout for commentary on the broader oil and gas outlook, upstream production and refining margins.
For Canada, Statistics Canada is scheduled to report the country's GDP numbers on Thursday. The economic growth likely remained flat in August, after growing by 0.2% in July. Additionally, S&P Global's manufacturing PMI data for October is scheduled to be reported on Friday.
On the Latin American front, Mexico's national statistics agency INEGI will release a preliminary estimate of the country's third-quarter GDP on Wednesday. Brazil's industrial output figures for the month of September will be on tap on Friday. On the same day, S&P Global will release October manufacturing PMI figures for Brazil and Mexico.
Compiled by Ankita Yadav in Bengaluru; Editing by Vijay Kishore
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
