Investors are gearing up for a busy week as Tesla, Boeing, and UPS headline the latest wave of earnings reports.
Fresh off six consecutive weeks of gains, the stock market now turns to quarterly results from major companies, including Tesla, which will report earnings on Wednesday following its “We, Robot” event earlier this month.
Markets have performed well recently, with the Dow Jones Industrial Average rising 1% last week and the S&P 500 and Nasdaq gaining around 0.9%.
Sectors such as utilities, real estate, and financials also saw strong performances, reflecting a rotation out of tech stocks, reported Yahoo!Finance. Meanwhile, small-cap stocks outpaced the broader indexes, with the Russell 2000 posting a 2% gain.
Earnings season has kicked off with encouraging numbers: 79% of S&P 500 companies have exceeded analysts’ expectations so far, according to FactSet, per Yahoo!Finance. Tesla, Boeing, General Motors, American Airlines, and UPS are expected to continue the momentum, keeping investors focused on company-specific performance and guidance.
Tesla’s earnings report will be closely watched after the recent unveiling of the Cybercab, a $30,000 autonomous vehicle. While Tesla’s global deliveries have improved, some analysts remain skeptical about the viability of the driverless Cybercab, noting the absence of traditional features like a steering wheel.
Tesla’s stock has fluctuated this year and is down about 10% year-to-date.
Economic indicators will also play a significant role this week, with the Fed’s Beige Book set to provide a snapshot of economic conditions across the 12 Federal Reserve districts. The housing market will remain in the spotlight as mortgage rates approach 6.5%, impacting home sales and consumer sentiment.
Labor data will also be scrutinized, with weekly jobless claims due Thursday.
Recent jobless claims have shown some stabilization, but economists warn that disruptions from Hurricanes Helene and Milton and the Boeing labor strike could skew future readings.
Consumer sentiment data from the University of Michigan, set for release on Friday, will offer further insights into the economy’s state. Analysts expect a slight increase in sentiment, though high prices dampen consumer optimism despite easing inflation.
Speeches from key Fed officials this week will provide important clues as the Federal Reserve is expected to decide on additional rate cuts.
San Francisco Fed President Mary Daly has hinted at the possibility of further cuts. At the same time, Fed Governor Chris Waller urged caution, suggesting the economy might not be slowing as much as anticipated.