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What to Expect in the Week Ahead (PLTR, ARM, QCOM Earnings; US Presidential Election and Fed Interest Rate Decision)

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Moomoo Breakfast US wrote a column · Nov 3 17:57
What to Expect in the Week Ahead (PLTR, ARM, QCOM Earnings; US Presidential Election and Fed Interest Rate Decision)
Earnings Preview
Chipmakers $NXP Semiconductors (NXPI.US)$, $Arm Holdings (ARM.US)$, and $Qualcomm (QCOM.US)$ are anticipated to deliver a varied set of earnings, as suggested by the subdued results from their industry counterparts, $ASML Holding (ASML.US)$ and $ON Semiconductor (ON.US)$. Given the continued weak demand from the automotive, mobile, and industrial sectors, Qualcomm will likely be the sole semiconductor manufacturer among the trio to report double-digit revenue growth this week.
The upcoming earnings from $Airbnb (ABNB.US)$ and $Expedia (EXPE.US)$ are expected to provide a more defined view of global travel demand, following $Booking Holdings (BKNG.US)$’s unexpectedly positive outlook for the year.
What to Expect in the Week Ahead (PLTR, ARM, QCOM Earnings; US Presidential Election and Fed Interest Rate Decision)
$Palantir (PLTR.US)$ is set to report earnings on Monday after the market closes. The company's commercial sales are projected to have increased by 32%, while ongoing global tensions are believed to have boosted government sales by 23%. To surpass consensus earnings forecasts for 2025, Palantir will need to intensify the deployment of its products via hyperscale cloud providers and expand its customer base into new industries, according to BI.
$Arm Holdings (ARM.US)$ and $Qualcomm (QCOM.US)$ are scheduled to release earnings on Wednesday. Arm's conflict with Qualcomm is expected to be a focal point in an upcoming report that is also likely to reveal an end to its four-quarter streak of double-digit sales growth. The chip designer's revenue is anticipated to see a modest increase of just 0.5%, hindered by a slowdown in the Internet of Things (IoT) market.
Qualcomm is expected to address its dispute with Arm and outline its strategy to leverage its own designs to expand in the artificial intelligence device market. Adjusted revenue is projected to have increased for the fourth consecutive quarter, driven by a rebound in IoT sales and sustained strength in its handsets, automotive, and technology licensing segments. However, in light of the lukewarm reception to Apple’s latest iPhone model, Qualcomm's forecast for the upcoming quarter remains uncertain, as noted by BI.
Macroeconomic Events
Markets have largely ignored a significant downside deviation in nonfarm payrolls and a weaker-than-expected ISM manufacturing reading, attributing this softness to hurricanes and other temporary disruptions. However, Tuesday's upcoming U.S. presidential election is a more pressing issue currently overshadowing these economic indicators.
The polls indicate a very close race, and the outcome is critical. The winner will have significant influence over trade policy. Former President Donald Trump, in particular, would likely exert this power robustly if re-elected. The composition of Congress, whether it results in a Republican sweep or a divided government, will play a crucial role in determining the likelihood of extending the Tax Cuts and Jobs Act of 2017, a decision that affects personal tax cuts for numerous Americans.
While the election is undeniably a key focus, the markets may have excessively dismissed the payroll and ISM reports. The shortfall in payrolls was primarily due to a drop in employment in the professional and business sectors, noticeable across various states, including those not affected by hurricanes. Notably, a significant portion of this slowdown occurred in temporary services, which often serve as a barometer for business cycles, suggesting a continued cooling in the labor market. The upcoming ISM Services data on Tuesday will provide further insights into whether service employment is also experiencing a slowdown.
From the Federal Open Market Committee's (FOMC) perspective, which is set to announce its rate decision on Thursday, the data observed between meetings are generally seen as mediocre and are consistent with a continued pattern of rate reductions. Historically, Fed Chair Jerome Powell has responded to signals from the Beige Book, which recently indicated subpar performance, and is unlikely to disregard the recent unexpected downturns and revisions in nonfarm payrolls as the markets have. Anticipating a dovish stance from Powell at the November FOMC meeting, the Fed is expected to reduce rates by 25 basis points in November, with a similar cut likely in December, according to Bloomberg.
What to Expect in the Week Ahead (PLTR, ARM, QCOM Earnings; US Presidential Election and Fed Interest Rate Decision)
What to Expect in the Week Ahead (PLTR, ARM, QCOM Earnings; US Presidential Election and Fed Interest Rate Decision)
What to Expect in the Week Ahead (PLTR, ARM, QCOM Earnings; US Presidential Election and Fed Interest Rate Decision)
What to Expect in the Week Ahead (PLTR, ARM, QCOM Earnings; US Presidential Election and Fed Interest Rate Decision)
Source: Dow Jones, Market Watch, CNBC, Finviz, Bloomberg
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What to Expect in the Week Ahead (PLTR, ARM, QCOM Earnings; US Presidential Election and Fed Interest Rate Decision)
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