What To Expect in the Markets This Week

Tuesday’s presidential election will attract a lot of attention from market watchers, as will the Federal Reserve’s decision on Thursday whether to cut interest rates again. Federal Reserve Chairman Jerome Powell’s comments on Thursday could set the tone for future action from the central bank.

Technology companies Palantir Technologies (PLTR), Microchip Technology (MCHP), and Arm Holdings (ARM) will release quarterly financial updates this week, along with drug providers Novo Nordisk (NVO), Vertex Pharmaceuticals (VRTX), and Gilead Sciences (GILD). .

Monday 4 November

• Factory Orders (September)
• Vertex PharmaceuticalsPalantir Technologies,Energy Constellation (CEG), and Marriott International (MAR) Earnings report

Tuesday 5 November

• US trade deficit (September)
• Global Services PMI (S&P) (October)
• Services Purchasing Managers’ Index (ISM) (October)
• US presidential elections
• ferrari (racing), Apollo Global Management (APO), microchip technology, And yum! Trademarks (yum) Earnings report

Wednesday 6 November

• The Federal Open Market Committee (FOMC) meeting begins.
• Novo NordiskToyota Motor(TM)Qualcomm (QCOM)Honda Motor (HMC)Holding armGilead Sciences, CVS Health (CVS) Earnings report

Thursday 7 November

• Initial Jobless Claims (Week Ending November 2)
• US Productivity and Costs (Q3)
• Wholesale Inventories (September)
• Federal Open Market Committee (FOMC) decision on interest rates
• Press conference by Federal Reserve Chairman Jerome Powell
• Consumer Credit (September)
• Arista Networks (ANET)Duke Energy (DUK)AirbnbWarner Bros. Discovery (WBD), News Corporation (NWSA) a report Profits

Friday 8 November

• Consumer Sentiment – Preliminary (November)
• NRG Energy (NRG) Paramount Global (PARA) Earnings report

Investors are focused on Election Day, the Fed’s interest rate decision, and Powell’s comments

Tuesday’s presidential election will be in the spotlight, and its results are likely to have an impact on the economy next year.

Market watchers will also be closely following several economic releases this week, with an eye on the conclusion of the Federal Open Market Committee (FOMC) meeting on Thursday, where the central bank will decide whether to adjust interest rates again.

The Fed’s decision follows its move to cut interest rates by half a percentage point at its last meeting in September, raising the interest rate to 4.75% to 5%. Investors are pricing in another quarter-point cut at this meeting, according to the CME Group FedWatch tool. Market participants will also tune in to Fed Chairman Jerome Powell’s press conference on Thursday afternoon, where he is expected to talk about the central bank’s analysis of the economy and provide guidance on the Fed’s path to lower interest rates in the coming quarters. Other Fed officials will be in a blackout period preventing them from discussing monetary policy.

Besides the election, investors on Tuesday will also get updated Purchasing Managers’ Index (PMI) data on the services sector and a September update on the US trade deficit. Information on the US consumer is also scheduled to be released this week, with updated data on consumer credit levels released on Thursday and a first look at consumer confidence for November on Friday.

Investors are watching earnings from Palantir, Novo Nordisk and Toyota

Data analysis software company Palantir Technologies leads this week’s corporate earnings reports when it releases its financial update on Monday. Asset management firm Ark Invest recently noted that the company’s software products are a beneficiary of artificial intelligence (AI) trends, with the company’s stock price up more than 140% this year. The third-quarter report comes after it raised its full-year guidance in its last earnings report in August.

Other technology companies are scheduled to report this week, including Microchip Technology on Tuesday and Arm Holdings on Wednesday.

Danish pharmaceutical company Novo Nordisk, maker of weight-loss drugs Ozempic and Wegovy, will report earnings on Wednesday, after the 25% revenue growth it reported in the previous quarter failed to meet analysts’ estimates. Gene-editing technology provider Vertex Pharmaceuticals will release its report on Monday, and HIV treatment maker Gilead Sciences will release its financials on Wednesday.

Pharmacy chain CVS Health will also release its quarterly earnings on Wednesday, following its decision last month to replace chief executive officer (CEO) Karen Lynch with David Joyner, who most recently ran CVS’ Caremark business.

Media company Paramount Global’s report on Friday comes after it announced it would cut 2,000 jobs as it seeks to cut costs. Warner Bros. will release Discovery and News Corp released its quarterly financial statements on Thursday.

Foreign automakers are also scheduled to announce their agenda this week, with Italy’s Ferrari to release its report on Tuesday and Japan’s Toyota Motor Co. to release its financial report on Wednesday.