Mag 7 Earnings

In the upcoming week, five of the Mag 7 stocks that have contributed significantly to market gains over the previous two years are scheduled to report.

Alphabet, the parent company of Google, is scheduled to report on Tuesday. Microsoft and Meta will follow on Wednesday, and Apple and Amazon on Thursday.

Due to their enormous market valuations, the corporations have a significant impact on markets. Together, they make up 23% of the S&P 500's weight, so how the market responds to their performance might have an impact on more general indices in the days to come.

Following CEO Elon Musk's statement that he anticipates a 20% to 30% increase in car sales next year, Tesla, the first of the Magnificent Seven to release results, witnessed a sharp rise in its stock price on Thursday.

When compared to the rest of the S&P 500, the firms have reported significantly higher profit growth; however, this difference is anticipated to narrow in the upcoming quarters.

Nonfarm Payrolls

Friday's employment data is anticipated to reflect the impact of strikes at Textron, Hilton Hotels, and Boeing, causing job growth to decelerate to a more moderate 111,000 in October. In addition, Hurricanes Helene and Milton caused weather-related difficulties. It is predicted that the unemployment rate will stay at 4.1%.

After making a 50-bps decrease in September, the Fed has already signalled that it will lower interest rates by 25 basis points at its November meeting; but, this week's economic statistics may still influence that vote.

The September JOLTS data on Tuesday and the initial jobless claims report on Thursday will be keenly scrutinised for any indications of a labour market slowdown, even as Fed officials presumably examine short-term variables influencing payroll figures.

Gross Domestic Product

The first estimate of the third-quarter GDP on Wednesday and the personal income and spending report on Thursday, which includes the core PCE price index—the central bank's preferred inflation indicator—are the other significant data releases that the Fed will be closely monitoring in the upcoming week.

The economy should have grown at a strong 3% annual pace, which is in line with the growth rate from the previous quarter, according to economists.

A report on pending home sales, October statistics on business mood and consumer confidence, and the Institute for Supply Management's October manufacturing index are all scheduled to be released on the economic calendar.

Final Week Ahead of Election

Investors will probably continue to be on edge because this week is the last full week in markets before the U.S. presidential election on November 5 and the Fed's next monetary policy meeting on November 7.

In national and swing state polls, Republican presidential candidate Donald Trump and his Democratic opponent, Vice President Kamala Harris, are close; however, in recent weeks, Trump's leads have widened. In electoral prediction markets, the former president is also a small favourite.

(Sources: investing.com, reuters,com)