The week ahead for investors October 23, 2023

Snapshot: The Upcoming Week’s Highlights

Markets are bracing for a noteworthy week. From major tech earnings to significant economic metrics, here’s a quick rundown of what to expect:

Key Takeaways

• Tech giants like Microsoft, Meta Platforms, Amazon, and Google-parent Alphabet are set to report earnings next week.
• Additional significant corporations, including Visa, Mastercard, Verizon, Boeing, GE, Ford, General Motors, Spotify, Snap, IBM, Intel, ExxonMobil, and Chevron, will also unveil their earnings.
• The advance estimate for the third-quarter gross domestic product (GDP) will be released on Thursday, followed by the Personal Consumption Expenditures (PCE) Price Index on Friday.
• New and pending home sales data for September will offer insights into the housing market’s performance.

1. Earnings On The Horizon

Markets are preparing for a bustling week of corporate earnings, with a major emphasis on big tech. The spotlight is expected to shine on Microsoft, Meta Platforms, Amazon, and Google-parent Alphabet. Other notable companies releasing their earnings include Visa, Mastercard, Verizon, Boeing, GE, Ford, General Motors, Spotify, Snap, IBM, Intel, ExxonMobil, and Chevron.

2. U.S. Economic Health

The Bureau of Economic Analysis (BEA) will announce the advance estimate for the U.S. third-quarter gross domestic product (GDP) on Thursday. The GDP offers insights into the nation’s economic performance, reflecting the value of all goods and services produced. The U.S. economy has shown resilience, with GDP growth reported at 2.2% and 2.1% in the first two quarters of 2023, even amidst the Federal Reserve’s interest rate hikes.

3. Inflation and Consumer Spending

The Bureau of Economic Analysis will unveil the Personal Consumption Expenditures (PCE) Price Index on Friday, which is the Federal Reserve’s favored metric for inflation. Analysts from the Cleveland Federal Reserve Bank predict PCE prices to have increased by 0.35% in September. The core PCE Price Index, excluding food and energy costs, is projected to have grown by 0.29% from August and 3.7% year-on-year, nearing the central bank’s 2% target.

4. Housing Market Update

As the housing sector continues to influence the nation’s economy, this week will provide new data regarding new and pending home sales for the month of September.

Week at a Glance:

• Monday, Oct. 23: Earnings from Cadence Design Systems Inc., Brown & Brown Inc., Alexandria Real Estate Equities, and W.R. Berkley Corp. Also, the Chicago Fed National Activity Index will be unveiled.
• Tuesday, Oct. 24: A day filled with earnings reports from companies such as Microsoft, Alphabet Inc., Visa, The Coca-Cola Company, Novartis, Texas Instruments, Verizon Communications, General Electric, Barclays PLC, 3M Company, General Motors, Spotify Technologies, and Snap Inc. The Richmond Fed Manufacturing Index for October will also be released.
• Wednesday, Oct. 25: Corporate results from Meta Platforms, Thermo Fisher Scientific, T-Mobile US, IBM, Boeing, Automatic Data Processing Inc., CME Group, Equinix, General Dynamics, Banco Santander, Moody’s Corporation, O’Reilly Automotive, and Hess Corp. The New Home Sales data for September will be presented as well.
• Thursday, Oct. 26: Reports from Amazon, Mastercard, Merck & Company, Comcast Corp., Linde PLC, Intel Corporation, United Parcel Service, Honeywell International, Bristol-Myers Squibb, Anheuser Busch, and Ford Motor Company. Economic data releases include the U.S. Gross Domestic Product (Advance Estimate for Q3 2023), Durable Goods Orders, Retail Inventories, Wholesale Inventories, Pending Home Sales, and the Kansas City Manufacturing Index for October.
• Friday, Oct. 27: Earnings announcements from ExxonMobil, Chevron, AbbVie, Sanofi, Equinor, Charter Communications, Aon PLC, Colgate-Palmolive, Phillips 66, Xcel Energy Inc., and T. Rowe Price Group. Additionally, the Personal Consumption Expenditures (PCE) Price Index, Personal Income and Spending data, and the Michigan Consumer Sentiment Index (Final Reading for October) will be in focus.