Another set of corporate earnings reports await investors over the next week as the stock market looks to extend. its recent rebound.
Disney (DIS) highlights quarterly reporting week while Uber (Uber), Riviano (RIVN), Western Oil (OXI) and Warner Brothers Discovery (W.B.D.) also highlight the schedule.
The calendar will be quiet on the economic front, with the University of Michigan's first reading of November consumer confidence scheduled for Friday being the most notable release.
On Tuesday, Yahoo Finance will host its investment conferencewith voices including DoubleLine founder Jeffrey Gundlach, Meredith Whitney and media leaders Jeff Zucker and Kevin Mayer among the scheduled speakers.
Stocks enter first full trading week of November after their best week in about a year, as they rose investor confidence The Federal Reserve's rate-hiking campaign may have been excessive and stocks soared into the weekend.
The Dow Jones Industrial Average (^DJI) gained about 5% last week, while the S&P 500 (^GSPC) added almost 6%. The tech-heavy Nasdaq Composite (^IXIC) soared more than 6.6%, marking the best weekly performance of the major indices in 2023.
Friday employment report showed that job growth last month was lower than expectedwith the US economy adding 150,000 jobs in October and the unemployment rate reaching its highest level since January 2022 at 3.9%.
The slowdown in the labor market is a welcome sign for the Federal Reserve, which has noted that further weakening of the labor market will likely be necessary to keep inflation on its downward path.
"It is likely to remain true - not a certainty, but likely - that we will need to see slower growth and some weakening... in labor market conditions to fully restore price stability," the president said. the Federal Reserve, Jerome. Powell said at a news conference last Wednesday.
powell He did not explicitly reject the possibility of further rate hikes, noting that Fed officials are not discussing rate cuts at this time. Still, the market interpreted Powell's comments to mean that the central bank is likely to have ended interest rate hikes for the foreseeable future.
As of Friday afternoon, markets were pricing in a roughly 95% chance that the Federal Reserve will not raise rates at its next meeting. according to the CME FedWatch tool, about 15 percentage points more than the previous day. A month ago, markets had priced in only a 53% chance that the Federal Reserve would not raise rates again.
"The October jobs report seemed tailor-made to coincide with Powell's soft landing message from earlier this week," JPMorgan chief U.S. economist Michael Feroli wrote in a research note on Friday. "At the end of the day, the economic data is going to make the decisions, and the data says we're done with rate hikes."
Disney leads the earnings race next week and the media giant will report results after the bell on Wednesday. Investors will focus on the company's new reporting structure, specifically any additional details about ESPN, which Individual financial reports recently published for the first time..
In February, Disney CEO Bob Iger restructured the company in three main business segments: Disney Entertainment, Sports (ESPN) and Experiences.
Within the report, key metrics will include Disney+ subscribers and the success of pay increases on the platform. Investors will also likely be watching for any updates on Hulu, following last week's announcement that Disney is buying it. Comcast's remaining stake in the streaming platform.
"We expect Linear's new independent segment to continue to decline due to the loss of pay-TV subscribers and advertising to remain weak," Macquarie media technology analyst Tim Nollen wrote in a research note on Dec. 24. October.
Overall, a solid earnings season had not served as a market catalyst in recent weeksas higher bond yields and fears of another Fed rate hike had been driving market action ahead of the Nov. 1 FOMC meeting.
But those fears are receding, for now, as the 10-year yield hit its lowest level in more than a month on Friday, pulling away from the 16-year highs it had reached. Wall Street strategists believed could be a constant drag on the stock.
In a note to clients on Friday, Evercore ISI Senior Managing Director Julian Emanuel noted that the fact that the 10-year Treasury yield never stayed above 5% during its recent rally has "changed the psychology." market," as stocks had recently been falling as yields rose. .
Importantly, this occurs as profits. have been largely better than expected.
According to Evercore ISI data, 404 S&P 500 companies had reported earnings as of Friday morning. Using updated projections based on earnings reports so far this period, the firm expects S&P 500 companies to post 2.2% sales growth and 3.6% earnings growth by the third quarter.
If those statistics hold up, it would be the first time The companies have reported earnings growth since the third quarter of 2022.
"This week reminds investors that money can be made in stocks with interest rates at these levels or higher; it happened for more than a decade before the GFC," Emanuel wrote in a research note on Friday.
"While we continue to view the medium term as challenging in light of earnings uncertainty, worrying geopolitics and the potential for recession, the logic for remaining hedged in the here and now no longer applies."
Weekly calendar
Monday
Economic data: No notable economic news will be published.
Profits: Dish networks (DISH), Devon Energy (DVN), cool pet (FRP), Tripadvisor (JOURNEY)
Tuesday
Economic data: Trade balance, September (-$60.5 billion expected, -$58.3 billion previously)
Profits: Holdings in degrees Celsius (celh), datadog (DOG), Dutch brothers (SIBLINGS), Fisker (FSR), Western Oil (OXI), Riviano (RIVN), Toast (ROAST), Uber (Uber)
Wednesday
Economic data: MBA Mortgage Applications, Nov. 3 (-2.1% previously); Month-over-month wholesale inventories, September (0% previously)
Profits: Disney (DIS), assert(AFRM), AMC (AMC), Marathon of digital participations (MARA), Trading Desk (TTD), Under Armor (AUA), Twilio (TWO), Warner Bros. Discovery (W.B.D.)
Thursday
Economic data: Initial jobless claims, week ending November 4 (218,000 expected, 217,000 previously)
Profits: Novavax (NVAX), oatmeal (oatmeal), yeti (YETI), The Trade Table (TTD), Wynn Resorts (WYNN)
Friday
Economic data: University of Michigan Consumer Confidence, November Preliminary (expected 64.0, previously 63.8)
Profits: No notable earnings are scheduled for release.
Josh Schafer is a Yahoo Finance reporter.
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