What will drive the markets this week?
US stocks closed October at new record highs after booking weekly and monthly gains, boosted by strong earnings reports, though economic data painted a more mixed picture on economic recovery, where jobless claims fell but headline inflation hit a fresh 30-year high.
The earnings season continues this week with companies from diverse sectors including energy and healthcare sectors reporting. Notable names include Marathon Oil, ConocoPhillips, and Diamondback (Energy); Ride-hailing companies Lyft & Uber; Pfizer and Moderna (healthcare).
Investors are anxiously expecting tighter Federal Reserve monetary policy as debt yield curves flatten across the globe. Many expect the Fed will announce a plan this week at the two-day Federal Open Market Committee (FOMC) meeting that begins on Tuesday – for tapering its $120 billion in monthly bond purchases. Markets will also digest economic data from across the world.
Monday, November 1:
- Earnings: PG&E.
- ISM Manufacturing PMI (October)
- U.S. Construction Spending (September)
Tuesday, November 2:
- Earnings: Pfizer, Amgen, Thomson Reuters, ConocoPhillips, Marathon Petroleum, Diamondback Energy, Vertex Pharmaceuticals, and Lyft.
- FOMC Meeting
- IBD/TIPP Economic Optimism (November)
- EA Markit Manufacturing PMI, Final (October)
- China Caixin Services PMI (October)
Wednesday, November 3:
- Earnings: CVS Health Corp, Progressive Corp, MetLife, Qualcomm, Emerson Electric, Marriott International, Electronic Arts, Manulife Financial, MGM Resorts International, Broadridge Financial Solutions, Jones Lang Lasalle, Marathon Oil, and APA Corp.
- MBA Mortgage Market Index (October)
- EA Unemployment Rate (September)
Thursday, November 4:
- Earnings: Moderna, Cigna Corp, AIG, Allstate, Illumina, Regeneron Pharmaceuticals, Square, Uber, Airbnb, Dropbox, and First Solar.
- EA Markit Services PMI, Final (October)
- EA PPI (September)
Friday November 5:
- Earnings: EOG Resources.
- LMI Logistics Managers Index (October)
- U.S. Nonfarm Payrolls (October)
- EA Construction PMI (October)
- EA Retail Sales (September)