3Q earnings reports, GDP, bonds progress and more: Monday's 5 things to know
Earnings reports from 162 S&P companies and 12 of the 30 Dow members will take place this week, including Alphabet and Microsoft
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Independent Institute senior fellow Judy Shelton and IWF policy director Hadley Heath Manning provide insight on the state of the world economy on 'Making Money.'
Here are the key events taking place on Monday that could impact trading.
S&P COMPANIES REPORT: Third-quarter earnings season will be in full swing this week, with 162 companies in the S&P 500, or about one-third of the benchmark index, set to report, including 12 of the 30 Dow members.
The big-cap consumer/tech titans will hog the spotlight, with Alphabet and Microsoft reporting on Tuesday, Facebook parent Meta Platforms on Wednesday, and Apple and Amazon on Thursday.
ALPHABET
Other key names to watch include automakers General Motors and Ford, oil giants ExxonMobil and Chevron, industrial conglomerate General Electric and a slew of others.
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One-fifth of the S&P 500 (99 companies) have reported so far.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 430.98 | +7.52 | +1.78% |
| META | META PLATFORMS INC. | 592.83 | +18.51 | +3.22% |
| AAPL | APPLE INC. | 239.59 | +2.26 | +0.95% |
| AMZN | AMAZON.COM INC. | 210.71 | +2.82 | +1.36% |
| GM | GENERAL MOTORS CO. | 55.04 | -0.55 | -0.99% |
| F | FORD MOTOR CO. | 10.98 | -0.15 | -1.35% |
| XOM | EXXON MOBIL CORP. | 117.83 | -0.23 | -0.19% |
| CVX | CHEVRON CORP. | 162.21 | +0.28 | +0.17% |
ECONOMIC DATA: The markets will get their first look at third-quarter GDP on Thursday.
Economists surveyed by Refinitiv expect the Commerce Department to say the economy grew at a 2.1% annual rate from July through September. That’s below the Atlanta Fed’s GDPNow model, which is calling for growth of 2.9%, and would follow two quarters in a row of contraction on supply chain disruptions and a record trade deficit.
Federal Reserve Chair Jerome Powell speaks during a news conference on interest rates, the economy and monetary policy actions, at the Federal Reserve Building in Washington, D.C. (OLIVIER DOULIERY/AFP via Getty Images / Getty Images)
The troubled housing market will also be in focus as investors pore over the Case-Shiller Home Price Index, new home sales and pending home sales data.
Durable goods orders and the latest personal income and spending data will also generate plenty of market interest.
MARKET WATCH: The Dow Jones Industrial Average raced to its best three-week stretch since November 2020, boosted by the prospect of a slower pace of interest rate increases and the latest batch of corporate earnings.
Major indexes started Friday with declines before turning higher, finishing the session near their highs of the day.
The Dow added 748.97 points, or 2.5%, to 31082.56. The S&P 500 added 86.97 points, or 2.4%, to 3752.75. The technology-focused Nasdaq Composite added 244.87 points, or 2.3%, to 10859.72. All three major indexes ended with weekly gains of at least 4.7%, a reprieve after a prolonged period of volatility that has been marked by big swings for stocks and bonds around the globe.
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Traders work on the floor of the New York Stock Exchange. (Michael M. Santiago/Getty Images / Getty Images)
The Dow and S&P 500 finished their best weeks since June, while the Nasdaq closed with its best week since July. Major indexes turned higher and Treasury yields paused their climb as The Wall Street Journal reported that Federal Reserve officials are set to raise interest rates by 0.75 percentage point at their Nov. 1-2 meeting but are poised to debate shifting to a smaller increase in December. Worries about the pace of interest-rate increases – and whether they will help drive the U.S. into a recession – have driven a sharp selloff throughout the year. "I think we're in the final innings of peak Fed hawkishness," said Christian Hoffmann, a portfolio manager at Thornburg Investment Management overseeing bonds.
BOND MARKETS: The yield on the benchmark note ended the week at 4.212%, near its highest levels of the past decade.
The yield on the two-year Treasury note, which is typically more sensitive to interest-rate expectations, also slipped Friday, ending the week at 4.489%.
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Traders discussing moves on the New York Stock Exchange. (Courtney Crow/New York Stock Exchange via AP / Associated Press)
Investors have been closely watching earnings for clues on how rising rates, a strong dollar and high inflation are affecting company profits.
Results for the third quarter have thus far been a mixed bag. U.S. banks helped boost markets early last week with better-than-expected results, but cracks are showing elsewhere.
GOOGLE SUED: Texas Attorney General Ken Paxton has sued Google alleging that the tech giant has "unlawfully captured and used the biometric data of millions of Texans without properly obtaining their informed consent to do so."
The lawsuit alleges that, in violation of Texan law, Google has "collected biometric data from innumerable Texans and used their faces and their voices to serve Google’s commercial ends."
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Lettering with the logo of Google is stuck on a glass pane in the press center. (Rolf Vennenbernd/picture alliance via Getty Images / Getty Images)
In 2015, Google released a feature called "Face Grouping." The program works by utilizing facial recognition technology to create a database of faces, stored in the cloud, to be utilized by individual's photo apps. When a photo is uploaded to Google apps ‘FaceNet’ scans the faces in the photo and cross-references it with its database to be able to group people together.
In his lawsuit, Paxton alleges that this feature violates the rights of Texans who may appear in the background of photos and, thereby, have their biometric data scanned and stored by Google without their consent.
"When a Texas mother uploads photos of her daughter’s third birthday party to Google Photos, for example, Google captures the face geometry of every child’s face that can be detected in those photographs. Even more troubling, when the mother uploads video of the birthday party, Google runs facial recognition on every face detected in that video, including the faces of uninvolved bystanders in the park, restaurant, or schoolyard," Paxton said. "To Google, it does not matter that the 3-year-olds, the bystanders, and grandma never consented to Google capturing and recording their biometric data."
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Paxton has made privacy issues a concern of his tenure. His office recently distributed $4.2 million dollars to 42,000 Texans whose personal information was comprised in a 2016 data breach of ride-share company, Uber. This is also not the first time the attorney general has sued Google, launching a lawsuit in 2020 with nine other states to combat Google's anti-competition practices.