Weekly market recap
U.S. stock futures rose slightly in overnight trading on Sunday as investors readied for the first trading of November. Market participants are gearing up for another week of corporate earnings, a key Federal Reserve meeting on Wednesday and October’s jobs report.
Stocks closed out the month of October on Friday and all three major averages closed at record highs. The $S&P 500 Index(.SPX.US)$and $Nasdaq Composite Index(.IXIC.US)$clinched their best months since November 2020.
Corporate earnings season dominated October amid solid earnings even with global supply chain concerns. About half of the S&P 500 companies have reported quarterly results and more than 80% of them beat earnings estimates from Wall Street analysts, according to Refinitiv.
Here's a look at the return of S&P 500 sectors
This week ahead in focus
There will be a lot on investors' radar this week, as third-quarter earnings season continues, October jobs numbers come out, and the Federal Reserve's policy committee potentially details its bond purchase reduction plans.
Some 160 S&P 500 companies are scheduled to report, plus dozens of small and mid cap firms.
The main event on the market calendar this week will be the conclusion of the Federal Open Market Committee's October monetary-policy meeting on Wednesday. Officials have strongly signalled that they will announce their plans to begin tapering the central bank's $120 billion in monthly asset purchases at the meeting. Interest-rate increases are still far off.
Monday 11/1
$Arista Networks(ANET.US)$, $Clorox(CLX.US)$, $Franklin Resources(BEN.US)$, $McKesson(MCK.US)$, $NXP Semiconductors(NXPI.US)$, $Public Storage(PSA.US)$, $SBA Communications Corp(SBAC.US)$, and $Simon Property Group Acquisition(SPGS.US)$release quarterly results.
The Census Bureau reports construction spending for September. Consensus estimate is for a 0.4% month-over-month increase to a seasonally adjusted annual rate of $1.59 trillion.
The Institute for Supply Management releases its Manufacturing Purchasing Managers Index for October. Expectations are for a 60.1 reading, slightly less than the September figure.
Tuesday 11/2
$Activision Blizzard(ATVI.US)$, $Amgen(AMGN.US)$, $ConocoPhillips(COP.US)$, $Eaton(ETN.US)$, $Estee Lauder(EL.US)$, $Ferrari(RACE.US)$, $Match group(MTCH.US)$, $Mondelez International(MDLZ.US)$, $Pfizer(PFE.US)$, and $T-Mobile US(TMUS.US)$US report earnings.
It's Election Day in an off-year headlined by gubernatorial contests in New Jersey and Virginia.
Wednesday 11/3
The FOMC announces its monetary-policy decision. The Fed is all but certain to maintain the federal-funds rates near zero and is expected to announce it will begin tapering its $120 billion in monthly asset purchases.
$Coca-Cola(KO.US)$holds a conference call to discuss its ESG initiatives.
$Booking Holdings(BKNG.US)$, $CVS Health(CVS.US)$, $Electronic Arts Inc(EA.US)$, $Emerson Electric(EMR.US)$, $Marriott International(MAR.US)$, $MetLife(MET.US)$, $MGM Resorts International(MGM.US)$, and $Qualcomm(QCOM.US)$announce quarterly results.
ISM releases its Services PMI for October. Economists forecast a 61.5 reading, roughly even with the September number.
ADP releases its National Employment Report for October. Consensus estimate is for private-sector employment to gain 472,500 jobs, after a 568,000 rise in September.
Thursday 11/4
$Airbnb(ABNB.US)$, $Becton, Dickinson and Co(BDXB.US)$, $Expedia(EXPE.US)$, $Illumina(ILMN.US)$, $Kellanova(K.US)$, $Moderna(MRNA.US)$, $NRG Energy(NRG.US)$, $Block(SQ.US)$, $ViacomCBS(VIAC.US)$, $Uber Technologies(UBER.US)$, and $Zoetis(ZTS.US)$hold conference calls to discuss earnings.
Friday 11/5
$Dominion Energy Inc(DCUE.US)$, $DraftKings(DKNG.US)$, and $Sempra Energy(SRE.US)$release quarterly results.
The Bureau of Labor Statistics releases the jobs report for October. Economists forecast a 435,000 gain for nonfarm payrolls and for the unemployment rate to remain unchanged at 4.8%. In September, the economy added 194,000 jobs, about 300,000 short of estimates. Both August and September had large shortfalls compared with expectations, as the labor shortage has persisted longer than many economists expected, despite a near-record level of job openings.
Source: CNBC, Barron's