Can Earnings Lift Stocks Now that Stimulus Talks Are Done?

Monday, October 26, 2020 4:16 PM | Bobby Raines

Oct. 26, 2020 - The market seems to have realized over the weekend that an economic stimulus bill isn't getting approved before the election.

That means the timing of a new stimulus bill is now dependent on the outcome of the election, where the least likely outcome according to polling and prediction markets, a GOP sweep, or probably even a GOP win in the Senate and White House, is the scenario where a new stimulus bill gets approved the fastest. The other two scenarios, a Democratic sweep, or a Biden victory and the GOP retaining control of the Senate, likely mean a new stimulus bill doesn't get approved until after Inauguration Day.

This scenario likely means a continuation of what we've seen in the market recently. Big tech and a few other areas may continue to perform relatively well, while companies and industries that need a growing economy to do well, will likely underperform.

It isn't all bad news though. Earnings season is in full swing this week, with most of those mega-cap tech companies reporting, as well as broad cross-section of stocks from across the economy. We wrote on Friday about how earnings season is going. If there is a week where earnings news could push the entire market higher, this week has a good chance of doing it. Now that the stimulus talks are done, earnings is the only game in market-town for a while.

Economic Events this Week

Tuesday
  • 8:30 a.m. - Durable Goods Orders
  • 10:00 a.m. - Consumer Confidence
Wednesday
  • 10:30 a.m. - EIA Crude Oil Inventories
Thursday
  • 8:30 a.m. - Initial Claims
  • 8:30 a.m. - Third Quarter GDP
Friday
  • 8:30 a.m. - Personal Income and Spending
  • 8:30 a.m. - PCE Prices
  • 9:45 a.m. - Chicago PMI

Earnings Reports this Week

Tuesday:

Before the bell: MMM, ARCC, AWI, BP, CAT, CNC, GLW, CROX, CMU, ECL, LLY, BEN, HOG, HUBB, IVZ, JBLU, LH, MRK, MSM, ODFL, OMC, BTU, PFE, PUU, RTX, QSR, ROP, SPGI, SHW, SSTK, SWK, SHOO, TECK, TRU, TPB, WDR, XRX After the bell: ACCO, AMD, AFL, AKAM, ARES, APAM, BXP, CHRW, CB, CYH, DENN, DXCM, EGP, EIX, WIRE, EQR, FEYE, FSLR, FISV, FTV, THG, HA, IEX, JBT, JNPR, KAI, LSCC, MASI, MTDR, MXIM, MSFT, OI, OKE, PPD, RNR, SKY, SWI, TEX, TRMK, RARE, UNM, VAR, VECO

Wednesday:

Before the bell: ANTM, ADP, BKU, BX, BA, BSX, EAT, BG, CME, DAN, DBD, DIN, EPD, FSV, FVRR, FDP, GRMN, GNRC, GD, GE, HES, LM, MAS, MA, NSC, R, SEE, SIX, SNE, SF, TEL, TW, TUP, UPS, GRA After the bell: ALGT, AFG, AMP, AMGN, NLY, AVB, BLKB, BOOT, CACI, ELY, CERN, CGNX, CTSH, CXO, CUZ, CREE, CONE, DRE, EBAY, ECHO, EQIX, ETSY, FSLY, F, GILD, GRUB, KBR, KLAC, MAA, MOH, MUSA, NDLS, ORLY, PE, PEN, PKI, PPC, PINS, RYN, RCII, SCI, NOW, SAVE, SFM, SRI, RGR, SPWR, TDOC, TXRH, TROX, URI, VVV, V, WCN, WELL, WERN, WDC, YUMC

Thursday:

Before the bell: FLWS, AOS, AAN, ALZN, ALKS, ATI, ADS, AMT, BUD, APO, APTV, HOME, BAX, BWA, BCO, BC, CCL, CBRA, CHD, CMS, CNX, CFX, CMCSA, COP, CTB, DNKN, DD, FSS, FIS, GIL, GPN, HUN, IDA, IDXX, IP, K, KDP, KHC, LAZ, MGLN, MMC, MLM, MLCO, MRNA, TAP, MCO, NEM, NVCR, OSK, OSTK, PENN, PWR, RL, SNY, SNDR, SHOP, SO, SPOT, TROW, TPR, TPX, TXT, TKR, SLCA, WAB, WD, WLTW, XYL, YUM After the bell: ATVI, GOOG, AMZN, AAPL, ADM, TEAM, CAR, BAND, BLDR, COG, CPT, CATM, CVNA, CAKE, COLM, DVA, DECK, DVN, DRQ, EMN, LOCO, ETH, RE, EXAS, FB, FLEX, FND, HIG, ILMN, KTOS, LMAT, LPSN, MTZ, MGM, MHK, MSI, NTUS, NUVA, PLT, PSMT, WDEL, RMD, SGEN, SHAK, SKX, SM, SPXC, SBUX, SYK, TRUP, TWTR, X, OLED, UHS, VRTX, VRTU, WWE, ZEN

Friday:

Before the bell: ABBV, MO, AXL, AON, BAH, BR, CBOE, CHTR, CVX, CL, XOM, FTS, GT, HON, ITT, KKR, LHX, MMP, NWL, PSX, PBI, UAA, WPC, WY

Sector and Industry Sentiment

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