The stock market — and the world — will be distracted in the coming week as the U.S. works through one of the most complex presidential elections in its history. The Federal Reserve steps in with a policy decision on Thursday. And the blast-furnace pace of earnings reports will continue.
Gold miners, nuclear power producers and biotechs are a few of the industries due to check in. Other names popular with investors and due to report include Palantir, Ferrari and MercadoLibre. Meanwhile, some of the biggest names in the market — including Amazon.com, Meta Platforms and Netflix — hover near buy points.
Stocks To Watch: Sizing Up A Paused Market
The stock market is near record highs but appears paused amid an earnings onslaught and the upcoming presidential election.
Still, earnings reports are driving many big stock moves, both up and down, and a number of stocks are in buy zones or setting up. Those include tech giants Amazon.com, Meta Platforms and Oracle. GoDaddy and TG Therapeutics round out the list.
Amazon passed an early buy point. Meta and Oracle are pulled back in tight trade. Amazon, Meta and GoDaddy have just reported earnings, while Oracle's are weeks away. TG Therapeutics was breaking out in strong trade Friday, and should post quarterly results in a few weeks.
Economic Calendar: Looking Beyond The Rate Cut
The Federal Reserve is virtually certain to cut its benchmark interest rate a quarter point on Thursday. However, market reaction is likely to depend on what Chair Jerome Powell has to say following the announcement. While the Fed chief won't handicap the likelihood of a further rate cut at the December meeting, what he does say should be pretty soothing for investors.
The main thing Wall Street wants to hear is that the federal funds rate remains well into restrictive territory after the latest cut. Friday's weak October jobs report was clouded by one-time factors. But recent data on inflation, wage growth and job openings all suggest the Fed will be able to ease further.
What Trump Vs. Harris Outcomes Mean For Stocks And The Economy
Power Grid: Nuke Week Puts AI In Focus
Artificial intelligence has big tech companies pouring money into nuclear energy. S&P 500 names Vistra and Constellation Energy have rallied around 30% since late September. Analysts expect Constellation to reports an 18% Q3 earnings gain early Monday. Vistra and several other nuclear-related companies report Thursday. Views see Vistra's EPS up 9% on a 22% revenue gain. Small modular reactor technology company NuScale Power targets a loss of 14 cents, improved from a loss of 22 cents per share a year ago on sales of $3.9 million, down 44%. Uranium refiner Cameco, also on Thursday, is the least extended of the group, working on a breakout from a cup base.
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Software Leaders: Palantir Sails Into Q3 Report
Data analytics darling Palantir Technologies reports Q3 results on Monday. Analysts project 29% EPS growth, with revenue climbing 26%. Government revenue is expected to climb nearly 23%, with commercial revenue up 31%. Analysts will look for news on artificial intelligence projects. Palantir, added to the S&P 500 in September, is up 144% so far this year.
Biotechs: Hot Prospects, Cool Expectations
A handful of biotech companies will report third-quarter earnings next week. Vertex Pharmaceuticals and BioNTech are on deck on Monday. Analysts expect Vertex earning to be flat after two years of growth. Analysts expect BioNTech to report a per-share loss of $1.59 – flipping from a year-earlier gain – and $585 million in sales, down 39%. Gilead Sciences reports late Wednesday, with views pointing to a 33% drop in earnings on a 1% sales slip. Gilead is up 14% from an August breakout, poised to break to an eight-year high. On Thursday, Moderna will report what analysts see as narrower losses, as sales skid 32%.
Automakers: Update On An Exotic Car Legend
Ferrari reports its third quarter early Tuesday. Analysts expect a 12% EPS increase on a 9% revenue gain, according to FactSet. That would be slower than in the prior three months. Investors will clue into the supercar maker's electric-vehicle plans and impact from China's softening economy. Ferrari shares are 5% below a flat-base buy point.
Commodities: An Important Week For Goldbugs
With gold prices racing to record highs, results due Thursday from Barrick Gold, Cameco and AngoGold Ashanti will be in focus in the coming week. Barrick is expected to post 31% EPS growth on a 19% sales bounce. Cameco earnings are seen falling 19% on 36% sales growth. AngoGold only reports production totals. Despite gold's gains, the market is skittish, and sent group heavyweight Newmont sharply lower on its Oct. 25 report.
Gold price and gold stocks could be even more volatile in the coming week, amid election results. GOLD and CCJ have recently pulled back below buy points, while AU is etching a down-sloping handle in a cup-with-handle pattern.
Stock Market Earnings Briefs
Marriott International opened the year in a rally, then fell into a six-month base. It is now breaking out of that base and in a buy range ahead of Monday morning's Q3 report. Analysts expect single-digit earnings and sales growth. Shares are up 16% this year.
Bright Horizons provides child care and early education, and a host of related services for families and employers. The stock, up 41% this year, has pulled back in a nine-week flat base. It reports third-quarter results late Monday.
Louisiana-Pacific delivers third-quarter earnings and revenue early on Tuesday. Analysts project Q3 EPS falling 45% to 89 cents and sales dropping 6% to $681 million. LPX shares have rallied 38% in 2024, but declined nearly 9% in October.
Teva Pharmaceutical reports its Q3 earnings before the stock market opens on Wednesday. The Street projects adjusted earnings of 66 cents per share, up 10%, and $4.14 billion in sales, an increase of more than 7.5%. Teva is 2% below a buy point in a cup base.
MercadoLibre reports third-quarter results on Wednesday. Analysts polled by FactSet expect earnings growth to slow to 48%, or $10.59 per share. Sales are seen rising 40% to $5.28 billion, according to FactSet. The Uruguay-based e-commerce company's stock is on a strong run, up 30% year-to-date and up 66% in the past 12 months. It sits in a six-week, second-stage flat base.
Arista Networks reports Q3 financial results late Thursday. Analysts expect the maker of cloud computing network gear to report earnings of $2.08 per share, up 14%, with revenue growing 16% to $1.755 billion. Arista's biggest customers are Microsoft and Facebook-parent Meta Platforms. In 2025, analysts expect a revenue boost from customer investments in artificial intelligence infrastructure. Shares are poised for a rebound from support.
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