As companies gear up to release their Q3 earnings, investors brace themselves for a potential clash between impressive corporate profits and lingering concerns about the state of the global economy.
This week, investors will have their attention divided between the Q3 2023 reports for several market-moving companies and the pivotal economic reports set to be published in the next few days.
Despite Federal Reserve Chair Jerome Powell’s promise to refrain from raising rates at the next meeting on November 1st, stocks closed another dismal week. Powell stated that a surge in long-term Treasury yields led to a sharper tightening in financial conditions, effectively replacing another Fed hike in terms of their economic impact. This led to another spike in 10-year Treasury yields, which reached their 16-year high.
While the earnings season has provided reasons for optimism so far, with 74% of companies beating analysts’ EPS estimates, the rise in borrowing costs puts downward pressure on stocks. It is crucial for stock market investors to closely follow incoming economic reports as they will impact borrowing costs and the Federal Reserve’s monetary policy decisions.
In this uncertain environment, investors are advised to base their decisions on trustworthy data and analysis.
The Q3 2023 reporting season is in full swing, with a flood of reports scheduled for this week. The most noteworthy earnings events include Microsoft (MSFT), Alphabet (GOOGL), Coca-Cola (KO), General Electric (GE), General Motors (GM), Meta Platforms (META), International Business Machines (IBM), Amazon.com (AMZN), Intel (INTC), Mastercard (MA), Colgate-Palmolive (CL), and Exxon Mobil (XOM).
This week, there are also ex-dividend dates for Dell Technologies (DELL), Lowe’s (LOW), Clorox (CLX), Carrier Global (CARR), Jacobs Engineering (J), and other dividend-paying firms.
Furthermore, there are several important economic reports scheduled to be published in the next few days. These include September’s S&P Global Manufacturing PMI and Services PMI, the preliminary estimate of Q3 2023 GDP growth annualized, and September’s Core Personal Consumption Expenditures (Core PCE).
It is essential for investors to stay informed about these upcoming economic events, as they can have a significant impact on stock markets.