U.S. stocks face a packed week after the latest stretch of third-quarter earnings ended on a weaker note. Investors will assess another round of corporate results, the outcome of Tuesday’s midterm elections and new data on the labor market.
The elections could affect sentiment around companies tied to artificial-intelligence infrastructure, particularly if candidates opposed to new data centers perform strongly. A different result could support a relief rally. Geopolitical developments will also remain relevant: any escalation involving Iran could put upward pressure on oil prices, bond yields and inflation expectations, creating additional headwinds for equities.
Apple is scheduled to report after Monday’s close, in what will be John Ternus’ first earnings call as chief executive. Investors are expected to focus less on the recent quarter than on management’s outlook, including demand for its products, gross margins and the effect of higher memory costs. Price increases may help offset those costs but could also weigh on demand. The company’s higher-margin Services division will be closely watched as a potential support for profitability.
Eaton, reporting Tuesday, is expected to draw attention to manufacturing capacity, margins, pricing and the integration of Boyd Thermal, which expanded its liquid-cooling offerings. Investors will also look for an update on the planned mobility-unit divestiture and signs of improvement in aerospace. Order growth will be especially important because it offers an indication of future demand rather than simply reflecting completed sales.
DuPont’s results will provide clues about organic growth across its end markets. Healthcare and water remain key areas of interest, while the company’s water business in the Middle East has faced manageable delays linked to the conflict involving Iran. Investors will also assess the effect of oil and gas inflation on margins and whether stronger non-residential construction can offset weak U.S. homebuilding.
Qnity Electronics reports Wednesday, with investors likely to focus on current-quarter demand after the semiconductor-materials supplier’s shares fell almost 20% from their early-August earnings report. Commentary on the PC market, AI chip production and shortages of advanced organic substrates could determine whether the recent decline appears justified. Any early comments about 2027 may also attract attention.
Cardinal Health reports Thursday with its shares near record highs, leaving limited room for disappointment. Investors will focus on earnings growth, generic-drug shipments and the economics of its distribution agreement with CVS Health, which was renewed through 2032. Updates on nuclear pharmaceuticals, direct-to-home delivery, OptiFreight and the effect of elevated oil prices on its medical-products business will also be relevant.
Kimberly-Clark will report alongside Cardinal Health. The company has already released preliminary results that were better than feared, reducing the surprise factor in the upcoming report. Investors may instead look for information about its planned acquisition of Kenvue, cost inflation and logistics, diaper sales in China, and demand in its professional business.
Economic data will culminate in Friday’s October nonfarm payrolls report. Economists expect 75,000 jobs to have been added, with unemployment remaining at 4.2%. The figures arrive as inflation remains above the Federal Reserve’s 2% target and markets assign odds of just under 75% to a quarter-point rate increase at the December meeting, according to the CME FedWatch Tool cited in the report.
Before Friday, investors will receive September’s JOLTS report and October’s ADP private-employment survey on Tuesday and Wednesday, respectively. The week will also include manufacturing data from the Institute for Supply Management, factory orders from the Census Bureau and the ISM services report. Initial jobless claims are due Thursday.
The week’s main schedule begins Monday with the ISM manufacturing PMI and earnings from companies including Marriott, Fox and Apple. Tuesday brings the midterm elections, JOLTS, factory orders and reports from DuPont and Eaton. ADP payrolls, ISM services and Qnity’s results are due Wednesday. Thursday includes jobless claims and earnings from Kimberly-Clark and Cardinal Health, while Friday is centered on the nonfarm payrolls report.
Sources: CNBC Markets.