Amazon, Alphabet, And Apple Headline Big Earnings Week For Tech

Summary:

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Investors next week will be looking for the October jobs report on Friday, as well as the Q3 GDP report ahead of the Fed’s next meeting on Nov. 7. Some 93% of market participants expect the Federal Open Market Committee to cut its benchmark lending rate by 25 basis points, while 7% expect this to change now, according to the CME Group’s FedWatch Tool. Meanwhile, the European Union will release its Q3 GDP estimate on Wednesday. Analysts are expecting a 0.2% rise over the year before, according to Investing.com.

The busy earnings season continues in the week ahead, with a focus on tech. Apple (NASDAQ:AAPL), Microsoft (MSFT), Amazon (NASDAQ:AMZN), Alphabet (GOOG, GOOGL) and Meta Platforms (META) will report Q3 results.

Apple earnings preview: Amazon.com (AMZN) will report Q3 earnings on October 31. The e-commerce and tech giant is forecast to report revenue of $157.34B and EPS of $1.34. Its gross margin is expected to come in at 50.1%. Growth at Amazon Web Services (AWS), its margins, capital expenditures, and retail margins in the US will be on key focus. Bank of America Securities earlier this week said it expects a “mixed” Q3, with “retail in line and AWS beat.”

Alphabet earnings preview: Alphabet (NASDAQ:GOOG)((GOOGL) will report Q3 earnings on Tuesday. The tech giant is expected to report revenue of $86.46B and EPS of $1.81. The Street is expected to focus on advertising growth, which Wedbush Securities said the consensus is “achievable.” However, the firm said in a note earlier this week that it sees headwinds from Amazon’s (AMZN) launch of Prime Video ads earlier in the year. It expects annual growth at Google and YouTube to each reach 11.5%. Wedbush said it expects any impact on Alphabet’s model from US Department of Justice court challenges to be “potentially years away.”

Earnings spotlight: Monday, October 28 – Ford Motor (F) and Waste Management (WMI). See the full earnings calendar.

Earnings spotlight: Tuesday, October 29 – Alphabet (GOOG)(NASDAQ:GOOGL), Advanced Micro Devices (AMD), McDonald’s (MCD), Pfizer (PFE), and Mondelez International. See the full earnings calendar.

Earnings spotlight: Wednesday, October 30 – Microsoft (MSFT), Meta Platforms (META), Eli Lilly (LLY), Caterpillar (CAT), Amgen (AMGN) and Starbucks (SBUX). See the full earnings calendar.

Earnings spotlight: Thursday, October 31 – Apple (AAPL), Amazon (AMZN), Mastercard (MA), Merck (MRK), Uber Technologies (UBER), and Comcast (CMCSA). See the full earnings calendar.

Earnings spotlight: Friday, November 1 – Exxon Mobil (NYSE:XOM), Chevron (CVX), Airbnb (ABNB), Charter Communications (CHTR), Monster Beverage (MNST), and Rocket Companies (RKT). See the full earnings calendar.

Volatility watch: Options trading volume is elevated on Spirit Airlines (SAVE) and Marinus Pharmaceuticals (MRNS). The most overbought stocks per their 14-day relative strength index include United Airlines (UAL), Phunware (PHUN), and Theralase Technologies (OTCQX:TLTFF). The most oversold stocks per their 14-day Relative Strength Index include Silvaco Group (SVCO), MGP Ingredients (MGPI), and Rusoro Mining (OTCPK:RMLFF). Short interest is elevated on Wheeler Real Estate Investment (WHLR) and Hertz Global Holdings (HTZ) as earnings approach.

IPO watch: There are no initial public offerings scheduled for next week. The IPO lockup periods expire during the week for certain blocks of shares of Viking Holdings (VIK) and Pineapple Financial (PAPL).

Dividend watch: Companies that have an ex-dividend date coming next week include Blackstone, (BX), Carrier Global (CARR), Levi Strauss (LEVI), Morgan Stanley (MS) and Costco Wholesale (COST). Companies forecast to raise their quarterly payouts include Visa (V) from $0.52 to $0.60, D.R. Horton to $0.325 from $0.30, Rockwell Automation (ROK) to $1.32 from $1.25, Marathon Petroleum (NYSE:MPC) to $0.55 from $0.52, and Exxon Mobil (XOM) to $0.97 from $0.95. Read through some of the dividend stock picks from Seeking Alpha analysts.

Investor events: TechCrunch Disrupt will take place in San Francisco. Notable speakers at the start-up event include General Motors (GM) CEO Mary Barra, Salesforce’s (CRM) Slack CEO Denise Dresser, Rocket Lab USA (RKLB) CEO Peter Beck, and Khosla Ventures Founder Vinod Khosla. Other notable investor events include McDonald’s (MCD) earnings conference call and V.F. Corporation (VFC) Investor Day event.