The third quarter earnings reporting season is off to a decent start, with about 68% of the few companies who have reported exceeding sales growth and revenue expectations. None-the-less, the S&P 500 and other major indexes lost a couple of percentage points last week as investors fretted over the timing of the next interest rate hike, which is more and more likely going to come this December. So far, financial companies have had the greatest upside surprises, as well as being expected to have the bet revenue and profit growth of the 10 sectors in the S&P.
Looking Ahead / This Weeks Market Moving Events:
While earnings season is off to a decent start, overall expectations continue to be muted. Moreover, markets are still all about the Fed and its next move, hence market participants are more focused on economic data than earnings at this moment. Last week’s sell-off was partially driven by weak Chinese data, more of which will be released this Tuesday evening.
- Monday: Industrial Production, Empire State Manufacturing Survey. Bank of America (BAC), IBM (IBM), and NETFLIX (NFLX) report earnings.
- Tuesday: CPI, Housing Market, Redbook report and Chinese Data (after the close). Black Rock (BLK), Harley Davidson (HOG), Intel (INTC), Johnson & Johnson (JNJ), Phillip Morris (PM), Yahoo (YHOO) report
- Wednesday: Housing Starts, Mortgage Applications and Beige Book. Abbot Labs (ABT), American Express (AXP), Halliburton (HAL), Morgan Stanley (MS), Tupperware (TUP) report.
- Thursday: Jobless Claims, Philly Fed Business Outlook Survey, Existing Home Sales, Leading Indicators are reported. Schlumberger (SLB) and Verizon (VZ) report
- Friday: Oil Rig Count. GE (GE), McDonalds (MCD), Whirlpool (WHR) report.