What to expect in the markets this week: Meta and Tesla report

Results season resumes this week, with results from two members of the Magnificent 7 taking center stage.

Meta Platforms and Tesla will report their quarterly numbers on Wednesday, kicking off a series of reports from Big Tech. Alphabet, Microsoft and Amazon are expected to join the party next week, followed by Apple on November 2. (Nvidia, the group’s most valuable member, won’t report for some time.) The tech sector — and its seven biggest names — has played an outsized role in the stock market’s recent gains.

Meta will address investors weeks after launching a widely adopted AI agent and scaling the tool for businesses. The momentum comes after Meta’s investment in AI weighed on its profits last quarter.

Investors are also watching Tesla’s investments. The electric vehicle maker missed profit estimates last quarter as it spent heavily on autonomous vehicle and robot projects. Tesla’s third-quarter electric vehicle deliveries beat estimates and last week introduced the Roadster, a sports car capable of rushing through the air. But Tesla also faces an investigation into safety standards surrounding Cybercab, its driverless ride-sharing service.

Results expected in the coming week could also offer insight into credit card spending and media streaming. So is travel, with four airlines set to report: This spring, airline executives were optimistic that consumers would pay higher airfares, but air travel was down about 5% year-over-year in September, and Delta Air Lines recently issued a more moderate outlook than expected.

Market Summary

The major indexes recorded mixed results for the week. The Dow Jones industrials rose 0.7%, while the S&P 500 fell 2%. A difficult week for technology stocks particularly weighed on the Nasdaq, which fell 4.5%, ending a four-week winning streak. A higher-than-expected inflation figure fueled speculation that the Fed would continue to raise rates, while memory stocks fell after a Chinese company said it had made progress in producing memory chips. For more, read Friday’s market recap here.

This week’s best events

Here is a list of major events happening this week. TradingView publishes a more detailed schedule, but clicking the link will take you out of the Investopedia site.

• Tuesday, October 20: General Motors (GM) is scheduled to release third-quarter results at 6:30 a.m., followed by a conference call at 8:30 a.m. GM wants to expand its defense business and recently announced a partnership with arms manufacturer Lockheed Martin (LMT).
• Tuesday: Netflix (NFLX) is scheduled to report third-quarter earnings at 4:01 p.m. ET and host a live interview with executives at 4:45 p.m. ET. The streaming giant’s second-quarter numbers were largely in line with expectations, but the company expected revenue growth to slow. The streamer announced layoffs last week. Spotify (SPOT) also reports this week.
• Wednesday October 21: Lam Research Corp. (LRCX) is expected to discuss its “September quarter” results on a conference call at 5 p.m. ET, with numbers expected earlier in the afternoon. The company, which produces chipmaking equipment, has benefited from strong demand during the development of AI.
• Wednesday: IBM (IBM) is scheduled to report third-quarter results and hold a conference call at 5 p.m. ET. Shares of the software giant plunged after releasing disappointing preliminary results last quarter. IBM said its customers are spending less on software and more on server and memory products, whose prices have soared in recent months.
• Wednesday: Meta Platforms (META) is scheduled to report third-quarter results after the market close, followed by a conference call at 5:30 p.m. ET. The social media giant posted record second-quarter revenue, but profits fell short of expectations and shares fell.
• Wednesday: Tesla (TSLA) is scheduled to report third-quarter results after the closing bell, followed by a live Q&A webcast at 5:30 p.m. ET.
• Thursday, October 22: American Airlines (AAL) is scheduled to host a third-quarter earnings conference call at 8:30 a.m. ET, with numbers expected shortly before. The airline beat estimates last quarter, but its shares fell when it issued downbeat forecasts. United Airlines (UAL), Alaska Air Group (ALK) and Southwest Airlines (LUV) also report this week.
• Thursday: Procter & Gamble (PG) is scheduled to hold a conference call on its first quarter financial results at 8:30 a.m. ET, with numbers expected before then. The company behind Tide and Pampers missed revenue estimates last quarter, sending its shares tumbling.
• Thursday: Comcast (CMCSA) is scheduled to report third-quarter earnings and hold a conference call at 8:30 a.m. ET. The company’s shares took off this summer when the Internet and wireless provider announced plans to spin off its media arm, NBCUniversal. AT&T (T) also reports this week.
• Thursday: Western Digital (WDC) is scheduled to release its first quarter financial results after the closing bell and hold a conference call at 4:30 p.m. ET. The memory and data storage company beat expectations last quarter. Toshiba’s plans to double its hard drive capacity have recently weighed on the industry.

More reading on Investopedia

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