Get ready for another round of corporate earnings reports in the upcoming week as the stock market aims to continue its recent rally.
Highlighting the week of quarterly reports are Disney (DIS), Uber (Uber), Rivian (RIVN), Occidental Petroleum (OXY), and Warner Brothers Discovery (WBD).
On the economic front, the University of Michigan’s first reading of November consumer sentiment, scheduled for Friday, will be the most notable release.
Additionally, Yahoo Finance will be hosting its Invest conference on Tuesday, featuring speakers such as Jeffrey Gundlach, Meredith Whitney, Jeff Zucker, and Kevin Mayer.
Stocks enter the first full trading week of November on a positive note, following their best week in about a year. Investor confidence in the Federal Reserve’s rate hiking campaign being over propelled equities higher.
Last week, the Dow Jones Industrial Average (^DJI) gained about 5%, the S&P 500 (^GSPC) added nearly 6%, and the Nasdaq Composite (^IXIC) soared more than 6.6%, marking the major indexes’ best weekly performance in 2023.
In the jobs report released on Friday, job growth in October was lower than expected, with the unemployment rate reaching its highest level since January 2022 at 3.9%. This slowdown in the labor market is seen as a positive sign for the Federal Reserve’s goal of keeping inflation in check.
During a press conference, Fed Chair Jerome Powell mentioned the need for slower growth and softening in the labor market to fully restore price stability, but did not explicitly rule out further rate hikes. However, the market interpreted Powell’s comments as a signal that the central bank is likely done with interest rate hikes for the foreseeable future.
As of Friday afternoon, markets were pricing in a roughly 95% chance that the Fed won’t raise rates at its next meeting, according to the CME FedWatch Tool. This is a significant increase from a month ago, when markets had priced in just a 53% chance of no rate hike.
“The October jobs report seemed tailor-made to match Powell’s soft landing message from earlier this week,” noted JPMorgan chief US economist Michael Feroli.
Disney will lead the earnings rush this week, with investors eager to see the company’s new reporting structure and any updates on Disney+ subscriber numbers and the Hulu acquisition.
The recent decline in bond yields has eased concerns about another Fed rate hike, contributing to a more positive market sentiment. Earnings have also been better than expected, with S&P 500 companies projected to report sales growth of 2.2% and earnings growth of 3.6% for the third quarter, marking the first earnings growth since the fourth quarter of 2022.
Economic data and earnings releases for the upcoming week include Dish Networks (DISH), Devon Energy (DVN), FreshPet (FRPT), Tripadvisor (TRIP), Celsius Holdings (CELH), Datadog (DDOG), Dutch Bros. (BROS), Fisker (FSR), Tost (TOST), Affirm (AFRM), AMC (AMC), Marathon Digital Holdings (MARA), Trade Desk (TTD), Under Armour (UAA), Twilio (TWLO), Novavax (NVAX), Oatly (Oatly), Yeti (YETI), Wynn Resorts (WYNN), and more.
Don’t miss out on the latest economic news and indicators to help inform your investing decisions, and stay updated on the latest financial and business news from Yahoo Finance.
Josh Schafer is a reporter for Yahoo Finance.
