Investors Prepare for Heavy Earnings Week and First Bitcoin Futures ETF

Last Updated: Wednesday, October 20, 2021 2:48 PM | Neal Farmer

Markets are off to a solid start this week with the S&P 500 gaining 0.34% Monday while the tech-heavy NASDAQ rising 0.84%.

The focus this week will be on earnings swith a number of large names scheduled to report its quarterly performance. Meanwhile, economic data will be pretty light outside of some housing data and the weekly unemployment claims. Aside from that, big news for crypto this week with the first bitcoin futures ETF set to debut tomorrow October 19. The ProShares ETF will begin trading Tuesday on the NYSE under the ticker “BITO”.

All About the Earnings

Earnings season got off to a great start last week with almost all firms surpassing estimates including some of the world’s largest banks. A massive number of big names are set to report with airlines and leading telecommunications companies in focus. United Airlines (UAL), American (AAL), Southwest Air (LUV), and Alaska Air (ALK) are all set to report. Investors are hopeful that these airlines can follow Delta’s outperformance reported last week and maybe even record a profit as well.

Meanwhile, a far more stable industry, telecom services, has leaders Verizon (VZ) and AT&T (T) set to release quarterly earnings. Both are expected to report marginally higher earnings per share (EPS) than the year-ago period with $1.36 against $1.25 for Verizon and $0.80 against $0.76 for AT&T.

Other names investors will be keeping an eye on include Tesla (TSLA), Netflix (NFLX), Chipotle (CMG), American Express (AXP), Anthem (ANTM), IBM, and Intel (INTC) among others. Intel in particular should be of note on any comments surrounding the semiconductor shortage following comments from Taiwan Semiconductor (TSM) during its earnings report last week.

Housing Situation

Outside of earnings, economic data set for release will be focused on the housing market. Housing starts and building permits are expected to show a slight dip last month of 0.9% and 1.8% respectively. Estimates for housing starts are currently around an annualized rate of 1.6 million following a rate of 1.615 million in August while permits are expected to fall from a rate of 1.72 million to 1.69 million. Also this week, existing home sales are expected to rise from an annualized rate of 5.88 million to 6.05 million for September.

Lastly, economists estimates for initial unemployment claims are hovering around 303,000 following last week’s reported 293,000 claims. Continuing claims fell to 2.59 million in last week’s report.

Economic Events this Week

Tuesday - 8:30 a.m. - Housing Starts - 8:30 a.m. - Building Permits

Wednesday - 10:30 a.m. - EIA Crude Oil Inventories

Thursday - 8:30 a.m. - Initial & Continuing Claims - 10:00 a.m. - Existing Home Sales

Friday - 9:45 a.m. - IHS Markit Manufacturing & Services PMI - Preliminary Reading

Earnings Reports This Week

Tuesday:

Before the bell: ERIC, JNJ, PG, PM, TRV, MAN, BK, HAL, SYF After the bell: UAL, NFLX, CNI, OMC,

Wednesday:

Before the bell: ANTM, VZ, ABT, LAD, NEE, BKR, BIIB, CP, WSO After the bell: IBM, TSLA, THC, LRCX, PPG, KMI, CSX, DFS

Thursday:

Before the bell: T, VLO, DOW, NUE, AAL, ABB, DHR, AN, FCX, UNP, GPC, LUV, MMC, ALK, RCI, IQV, TSCO After the bell: INTC, WHR, OLN, CE

Friday:

Before the bell: HCA, AXP, HON, SLB, CLF, VFC, STX

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