Key earnings reports, market recap, economic reports reviewed and more: Monday's 5 things to know
Monday's PMI release kicks off a week of economic reports including focus on manufacturing and services sectors and the October employment report on Friday
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Here are the key events taking place this week that could impact trading.
EARNINGS THIS WEEK: Third-quarter earnings season continues this week, with 161 companies in the S&P 500 set to report, including one Dow member, Amgen.
While many high-profile companies have already reported, there are still some key names on deck, including Fox Corp. on Tuesday and News Corp. on Thursday.
AMGEN
Also watch for results from major health care-related companies such as CVS Health, Pfizer, Eli Lilly, Cardinal Health, Cigna and Humana.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FOX | FOX CORP. | 44.12 | +0.75 | +1.73% |
| NWSA | NEWS CORP. | 29.54 | +0.39 | +1.34% |
| CVS | CVS HEALTH CORP. | 57.10 | +0.27 | +0.48% |
| PFE | PFIZER INC. | 25.14 | +0.19 | +0.76% |
| LLY | ELI LILLY & CO. | 749.60 | -3.69 | -0.49% |
| CAH | CARDINAL HEALTH INC. | 123.40 | +3.05 | +2.53% |
| CI | THE CIGNA GROUP | 330.07 | +6.68 | +2.07% |
| HUM | HUMANA INC. | 295.62 | +1.60 | +0.54% |
More than half of the S&P 500 (264 companies) has reported 3Q numbers, and so far, the results are ahead of expectations.
STOCK RECAP: U.S. stocks rose Friday, with big gains by Apple helping offset declines among consumer discretionary stocks weighed down by a sales warning from e-commerce giant Amazon.
The tech-heavy Nasdaq Composite Index rose 309.78 points, or 2.9%, to 11102.45, bouncing back after two days of declines. The S&P 500 added 93.76 points, or 2.5%, to 3901.06 while the Dow Jones Industrial Average was up 828.52 points, or 2.6%, to 32861.80.
All three indexes finished the week with gains, with the Dow industrials' recent run-up putting it down less than 10% year-to-date.
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The Apple logo is seen on the outside of Bill Graham Civic Auditorium before the start of an event in San Francisco, California. (JOSH EDELSON/AFP via Getty Images / Getty Images)
Octobers are often billed as bad luck by traders, since the stock-market crash of 1929 and Black Monday both took place during the month. This year, however, the Dow industrials are on track to finish October up more than 14%, which would be its best monthly performance since January 1976.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 43870.35 | +461.88 | +1.06% |
| SP500 | S&P 500 | 5948.71 | +31.60 | +0.53% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18972.420086 | +6.28 | +0.03% |
These gains are a testament to how the group of companies known as FAANG – Facebook parent Meta Platforms, Apple, Amazon, Netflix and Google parent Alphabet – no longer drive the performance of major stock indexes as they did for years.
Those companies' shares all are down significantly in 2022, and Meta, Amazon and Alphabet all fell sharply this week after reporting lackluster earnings.
ECONOMIC REPORTS: Recent figures on the strength of the U.S. economy have been mixed.
Data Friday showed a stronger-than-expected monthly rise in consumer spending in September.
A busy week is ahead for economic data, with a focus on the manufacturing and services sectors, and ending with a flourish on Friday when the Labor Department releases the October employment report.
FED EXPECTED TO AGGRESSIVELY HIKE RATES TO 5%, TRIGGERING GLOBAL RECESSION: SURVEY
A photo of the outside of the Federal Reserve. (AP Photo/Patrick Semansky, File / Associated Press / AP Images)
The Fed's preferred inflation gauge, the core personal-consumption expenditures index, edged slightly lower last month from August.
A separate report showed worker pay and benefits rose 5% in the third quarter from a year before, marking a slight cooling from the prior quarter.
A day earlier, data showed the U.S. economy grew in the third quarter, though consumer and business spending faltered.
BOND MARKET FLUID: U.S. bond yields have eased in recent days as investors reassess their expectations for more rate increases from the Federal Reserve.
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Two traders working on the floor of the New York Stock Exchange in New York City. (Courtney Crow/New York Stock Exchange via AP) / Associated Press)
The central bank is meeting next week and is expected to deliver another 0.75-percentage-point increase, but some investors expect the Fed will ease up on the pace of rate increases thereafter.
The yield on the benchmark 10-year Treasury moved up to 4.009% Friday, from 3.938% on Thursday. Yields and prices move inversely.
TOO MUCH OVERHEAD: Elon Musk, who declared himself "Chief Twit" after closing his $44 billion takeover of Twitter this week, hinted at more staffing shakeups for the platform on Sunday morning.
A Twitter user asked Musk what the "most messed up" thing at Twitter right now is.
"There seem to be 10 people ‘managing’ for every one person coding," Musk replied.
The Tesla CEO said in May, just weeks after first making the offer, that the "company will be super focused on hardcore software engineering, design, infosec & server hardware" once the takeover is complete.
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In this photo illustration, a Twitter logo seen displayed on a smartphone screen. (Sheldon Cooper/SOPA Images/LightRocket via Getty Images / Getty Images)
"I strongly believe that all managers in a technical area must be technically excellent," Musk tweeted on May 6. "Managers in software must write great software or it’s like being a cavalry captain who can’t ride a horse!"
One of Musk's first moves after assuming control of the platform was to fire a trio of executives: former CEO Parag Agrawal, chief financial officer Ned Segal and policy chief Vijaya Gadde.
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Musk told potential investors that he planned to cut Twitter's workforce by about 75% from 7,500 to around 2,000 employees, according to the Washington Post.