The Market Week Ahead: Oct. 29 – Nov. 2

 

Oct. 29  – Earnings from three of the five FAANG stocks are in for the third quarter, and so far, the momentum darlings that have helped power the market higher for the last few years seem to be stuck in reverse. 

Amazon and Google parent Alphabet are both trading lower than they were before they reported earnings last week. Netflix, which reported on Oct. 16, is also down sharply despite the initially positive reaction to earnings. We talked about earnings, and the market’s reaction on Friday

Apple’s report after the bell on Thursday is probably the bigger deal given the company’s size, but Facebook will report after the bell Tuesday, potentially setting the table for a lot of selling Friday morning if The Market finds both reports to be lacking.

Notice, we didn’t say, “miss earnings” a lot of companies have been hit hard despite not missing earnings at all. Something in the forward guidance or management commentary can also send stocks tumbling this cycle, so it’s important not to just focus on that EPS number this time around.

Besides earnings, another potentially developing story this week is more tariffs. Monday’s session went from lackluster to bad after this story about potentially another round of tariffs to potentially be announced in December was published. Given the number of companies that have mentioned the tariffs unfavorably in their earnings announcements, and data showing that businesses aren’t investing in new equipment or employees, it seems like the increase we saw in growth we saw early in the year  is fading.

Economic Events this Week

This morning’s personal income and spending numbers were interesting, but outside of a big surprise from the ISM on Thursday, this week belongs to earnings.

  • Monday
    • 8:30 a.m. – Personal Income
    • 8:30 a.m. – Personal Spending
    • 8:30 a.m. – PCE Prices
  •  Wednesday
    • 8:15 a.m. – ADP Employment Change
    • 10:30 a.m. – EIA Crude Inventories
  •  Thursday
    • 10:00 a.m. – ISM Manufacturing Index
  • Friday
    • 8:30 a.m. – Nonfarm Payrolls
    • 8:30 a.m. – Avg. Hourly Earnings
    • 8:30 a.m. – Unemployment Rate
    • 8:30 a.m. – Average Workweek
    • 8:30 a.m. – Trade Balance

Earnings Reports this Week

There’s enough big names here that it’s unlikely that any one report is going to move the market, but this could also be the week where we start to get a real sense of whether or not earnings can lift the market back to the highs. 

Monday:

  • Before the bell: FDC, ESS, YNDX, BAH, ON
  • After the bell: ITUB, MDLZ, AVB, CLR, WCN

Tuesday:

  • Before the bell: PFE, MA, KO, BP, GE
  • After the bell: FB, AMGN, BIDU, TMUS, PSA

Wednesday:

  • Before the bell: SNY, ANTM, ADP, EPD, EL
  • After the bell: SU, ESRX, EC, AIG, ALL

Thursday: 

  • Before the bell: RDS.A, DWDP, SHPG, CI, D
  • After the bell: AAPL, SBUX, KHC, EOG, MET

Friday:

  • Before the bell: BRK.B, BABA, XOM, CVX, ABBV

Sector Analysis 

The market hasn’t been great lately, so the longer lists are all on the downside this week.

Strong Sectors past Month

There isn’t much up 5% or more in the last 20 trading days:

  • Volatility

Weak sectors past month

There’s a lot of red out there if you look at the last 20 days. The sector at the top of this list is actually down 20% over this period. These sectors are down 5% or more in the last 20 trading days:

  • Oil & Gas Exploration
  • Robotics
  • Biotech 
  • Oil Services
  • Semiconductors
  • Homebuilders
  • Internet
  • Solar
  • Cyber Security
  • Energy
  • Industrials
  • Metals & Mining
  • Consumer Discretionary
  • Small Caps
  • Materials
  • Airlines
  • Nasdaq 100
  • Medical Devices
  • MidCaps
  • Regional Banks
  • Steel
  • Banks
  • S&P 500
  • Retail
  • MLPs
  • Insurance
  • Health Care
  • Financials
  • Coal
  • Broker-Dealers

Strong sectors past five trading days

  • Volatility

Weak sectors past five trading days

  • Oil & Gas Exploration
  • Oil Services
  • Biotech
  • Robotics
  • Energy
  • Metals and Mining
  • MLPs
  • Industrials
  • Solar
  • Semiconductors
  • Internet
  • Junior Gold Miners
  • Coal
  • Steel
  • Nasdaq 100
  • Cyber Security
  • Gold Miners
  • Technology
  • Materials
  • S&P 500
  • Financials
  • Homebuilders
  • Broker-dealers
  • Health Care
  • Airlines
  • Consumer Discretionary
  • Insurance
  • Banks
  • Medical Devices
  • Regional Banks

Bobby Raines

Bobby Raines

Bobby Raines is the Managing Editor of the Market Intelligence Center. He has degrees in Mass Communications and History from Emory & Henry College. Bobby worked at a mid-sized daily newspaper before making a switch to covering the financial industry full time in the years leading up to the financial crisis. He has been a member of the Fresh Brewed Media team since 2011 and has served as a writer and analyst. You can write to him at braines@marketintelligencecenter.com or follow him on Twitter: @BRatMICenter.

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