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Summary of article:
US stocks were volatile as technology stocks reported worse-than-expected financial reports. This week the market’s focus will be on oil prices in the Middle East, Fed’s stance, important economic data, 143 corporate financial reports and changes in Trump’s tariffs.
Franklin Investment Advisors noted this week thatUS stocks There are five major observed variables. First of all, the situation in the Middle East andoil price : Pay attention to the progress of US-Iran talks,strait of hormuz and changes in Red Sea traffic conditions and oil prices.
The second is the Federal Reserve (Fed): Pay attention to the officials’ views on the economy, employment, inflation, interest rates, etc.
The third is economic data: The economic data released this week include the preliminary value of the University of Michigan consumer confidence index in November; ISM Manufacturing/Non-Manufacturing Index, Challenger Layoffs, Non-Farm Employment Report in October; Shock to job vacancies, factory orders, trade balance etc in September.
Fourth, corporate financial reports: Companies that will release financial reports this week include Apple, AMD, Qualcomm, Supermicro, Palantir, IREN, Datadog, Lumentum and Astera Lab, Haycom Telecom, Jiangmao Optoelectronics, Cloudflare, Arista Networks, Applovin, HubSpot, IonQ, Affirm, Block, Circle, Berkshire Hathaway, Franklin Templeton, Booking, Includes AirBnB, Tessar International. Kratos, Uber, Lyft, Utopia Performing Arts, McDonald’s, Yum Brands, Texas Fresh Cut Steak, Vistra, Oklo, MP Materials, Pfizer, Tempus AI, Amgen, Vertex, Moderna, and 143 other companies.
Fifth, Trump’s tariffs: After the Trump administration invoked Article 122 to impose 15% tariffs, it is also expected to invoke Article 232 (national security tariffs), Article 301 (unfair trade tariffs), Article 201 (anti-dumping tariffs), and Article 338 (trade discriminatory tariffs) to impose additional tariffs.
In terms of corporate financial reports, Franklin Investment Consulting reported that US corporate profit growth is strong. According to Bloomberg information, as of October 29, a total of 57.6% of the S&P 500 companies announced financial reports, of which 60% had better-than-expected revenue, with an average increase of 12.6%; 82.6% of profits exceeded expectations, with an average increase of 25.4%.
The market expects S&P 500 corporate profits to rise 29.5% in the third quarter, according to FactSet data through Oct. 23. Among them, profit growth of energy (up 136%), technology (65.6%), communication services (39.8%), and raw materials (30%) companies will be higher than the broader market.
The Franklin Equity team reported that the Fed kept interest rates on hold and strongly affirmed the performance of the US economy. However, although US employment is stable and the economy is strong, inflationary pressures remain. Anthropic officially submitted an IPO application, which once again revived investor confidence in the AI field. However, technology giants like Alphabet, Amazon, Intel and ServiceNow suffered huge losses after announcing their results, affecting investor confidence.
Summary FAQ
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Mainly the situation in the Middle East and changes in oil prices, especially the US-Iran talks, the Strait of Hormuz and the Red Sea traffic situation, because if geopolitics heats up, it could increase energy costs and increase market volatility.
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Statements from Fed officials on the economy, employment, inflation and interest rates will influence the market’s decision on the timing of interest rate cuts; Additionally, data such as University of Michigan Confidence, ISM, Non-Farm Payrolls and JOLT will also reflect the strength of the economy.
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This week, 143 companies, including Apple, Super Micro and Berkshire Hathaway, will announce financial reports that will test whether profits can remain strong; Additionally, if Trump’s tariffs expand the use of Articles 232, 301, 201, and 338, it could once again suppress risk appetite.
