Bringing fresh optimism to the virus-hit market, U.S jobless claims for the week ended October 17 slipped to the lowest level since the onset of the pandemic, in a sign the economy is gradually gathering steam. The stock markets remained volatile even as the latest reports indicated progress in the stimulus talks. At 3,464.90, the S&P 500 index opened slightly higher on Friday after experiencing weakness in the last session. Dow Jones ended Thursday up $0.54%.
On the earnings front, Tesla, Inc. (TSLA) on Wednesday surprised everyone by reporting record-high revenues and deliveries for the September quarter, underscoring its continued resilience to the COVID crisis. On the other hand, streaming giant Netflix, Inc. (NFLX) disappointed investors with poor third quarter show marked by weak subscription growth and lower-than-expected earnings.
Wall Street is headed for a busy week ahead, with several important announcements lined up. Microsoft Corp. (MSFT) is expected to unveil first-quarter numbers Tuesday after the market’s close. After joining hands with Eli Lilly & Co. (LLY) for coronavirus drug development, Amgen Inc. (AMGN) is set to release third-quarter report Wednesday evening. Google’s parent Alphabet Inc. (GOOG, GOOGL) has rescheduled its third-quarter report to October 29, the peak day of the week when other FAANG members Amazon.com, Inc. (AMZN), Apple Inc. (AAPL) and Facebook, Inc. (FB) are expected to publish their quarterly results – all after the closing bell.
In a week that was pretty low on M&A activities, On October 22, Intel Corp. (INTC) signed an agreement with Korea-based SK Hynix to sell its NAND memory and storage business to the latter for $9 billion. Elsewhere, ConocoPhillips (COP) clinched a deal to acquire rival energy firm Concho Resources (CXO), to create a combined entity worth $60 billion in enterprise value.
Key Earnings to Watch
Monday
SAP, Hasbro, Otis Worldwide, Twilio, Harmonic, and F5 Networks
Tuesday
Microsoft, Advanced Micro Devices, Pfizer, Juniper Networks, S&P Global, FireEye, Crocs, Novartis, Omnicom, 3M, Eli Lilly, Xerox, Harley-Davidson, Caterpillar, JetBlue Airways, BP, and Merck
Wednesday
United Parcel Service, Boeing, Automatic Data Processing, General Electric, Master Card, Boston Scientific, Garmin, Visa, eBay, Ford Motor, Amgen, and Cognizant Technology Solutions
Thursday
Apple, Facebook, Alphabet, Shopify, Twitter, Kraft Heinz, Comcast, Ralph Lauren, Yum! Brands, Kellogg, Sanofi, DuPont, Charles River Laboratories, Moody’s Corporation, Amazon, Starbucks, Activision Blizzard, and Skechers USA
Friday
Exxon Mobil, Under Armour, Chevron Corporation, Colgate-Palmolive, Goodyear Tire & Rubber Company, Eastman Chemical and Charter Communication
Key Corporate Conferences to Watch
Key Investor Days to Watch
Key US Economic Events
Looking Back
The following are notable companies that have reported earnings last week. In case you have missed to catch up on their performance, click on the respective links to skim through the earnings transcripts.
International Business Machines Corp. (IBM)
Lockheed Martin Corp (LMT)
Procter & Gamble Co (PG)
Netflix Inc. (NFLX)
Snap Inc. (SNAP)
Abbott Laboratories (ABT)
Verizon Communications Inc. (VZ)
Tesla, Inc. (TSLA)
Coca-Cola Company (KO)
American Airlines Group Inc. (AAL)
Intel Corp (INTC)
Southwest Airlines Co (LUV)
You can now listen to how the management responds to analyst questions and the tone they use on our YouTube channel, a repository of all the latest earnings conference calls.
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