Wall Street begins its second week of third-quarter earnings as investors brace for the first inflation data since the U.S. government shutdown, with Netflix, General Motors, Tesla, Ford, and Intel, all reporting.
The September Consumer Price Index (CPI), delayed nine days, is also scheduled for release on Friday, after the shutdown halted economic data releases since October 1. The government said the numbers were needed for the Social Security Administration to process benefit payments on time.
The report will arrive just before the Federal Reserve’s October 28–29 policy meeting, where traders expect a quarter-point rate cut, the second in two months after weak job data pushed the Fed to lower rates in September.
More than 80 of all S&P 500 companies will release their Q3 earnings this week, extending a busy start to the season. JPMorgan Chase and Goldman Sachs opened the season last week and delivered strong figures, with about 84 % of companies that have reported so far beating all estimates, as Cryptopolitan previously reported.
General Motors, Netflix, and Tesla report during packed mid-week sessions
General Motors (GM) will report Tuesday morning before markets open, followed by a management call at 8:30 a.m. ET. Last quarter, the automaker absorbed a $1.1 billion tariff hit. Analysts surveyed expect profits to drop more than 20 % year-over-year.
Edison Yu, an analyst at Deutsche Bank, said GM could still top forecasts but warned that “while pricing should remain consistent, results will likely be hurt by a small volume decline as well as higher net tariff impact.” Bespoke Investment Group found GM beats estimates 88 % of the time, though its stock has fallen on its last three earnings days, twice by more than 8 %.
Netflix will release results after the close Tuesday, followed by a call event. The streamer’s last report showed 16 % revenue growth, and analysts project nearly a 30 % profit increase this quarter.
Laurent Yoon from Bernstein said in a client note on Saturday that the animated hit “K-Pop Demon Hunters” drove the stock market’s rebound, adding about 500 million viewing hours, with another 400 million expected in the fourth quarter.
Netflix has exceeded earnings for six straight quarters and seen gains on three of the last four report days, Bespoke’s data shows.
Tesla follows Wednesday after the closing bell. The company missed sales targets last quarter as auto revenue slipped again, and analysts forecast another 20 % drop in earnings. Colin Langan of Wells Fargo expects a short-term beat but said “there’s too much hype baked into the stock.”
He added that the Full Self-Driving system remains under NHTSA investigation, affecting credibility. Tesla has beaten expectations less than 60 % of the time, Bespoke data show.
That “narrowing gap highlights emerging cracks in the market’s foundation,” Turnquist said in written commentary. Similarly, Kevin Gordon, senior investment strategist at Charles Schwab, said he will be watching how broadly based the market’s gains are going forward.
Ford, Intel, and the delayed CPI dominate Thursday’s market focus
Ford Motor reports Thursday after the bell, with an analyst call shortly following after. Last quarter, Ford reinstated its full-year guidance despite a $2 billion tariff hit. Analysts now expect earnings to fall more than 25 % from a year earlier.
Itay Michaeli of TD Cowen said attention will be on Ford’s aluminum supply from Novelis, especially for the F-Series trucks. He wrote that his estimates “do not contemplate any material production disruptions,” keeping forecasts near the top end of Ford’s EBIT outlook at $7.4 billion. Ford has beaten Wall Street estimates four quarters in a row.
Intel will also report Thursday after markets close, with its call at 5 p.m. ET. Last quarter, the chipmaker beat revenue forecasts and cut foundry spending. Analysts expect Intel to return to profitability this period. Its shares have jumped 62 % in three months after the U.S. government took a 10 % stake and Nvidia invested $5 billion.
Investors will be watching how Intel plans to leverage that backing. Still, its stock fell after each of the last three earnings, including an 8 % drop after the previous quarter.
“We’d really have to see something out of left field in terms of notable inflation pressures to knock the Fed off of a rate cut path at the October meeting,” Glenmede’s Michael Reynolds said.
That “narrowing gap highlights emerging cracks in the market’s foundation,” Turnquist said in written commentary. Similarly, Kevin Gordon, senior investment strategist at Charles Schwab, said he will be watching how broadly based the market’s gains are going forward.
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Source: https://www.cryptopolitan.com/wall-street-enters-second-q3-earnings-week/
