Earnings Rush: Tesla, Boeing, and UPS Set to Make Waves This Week

Stocks have been on a winning streak, with the Dow Jones Industrial Average leading the charge. As the earnings season heats up, major players like Tesla, Boeing, and UPS are set to report their quarterly results, drawing significant attention from investors and analysts alike.

Key Takeaways

• Earnings Reports: Tesla, Boeing, UPS, and others are scheduled to release their earnings this week.
• Market Performance: The Dow, S&P 500, and Nasdaq have all reached new highs recently.
• Economic Indicators: Investors will be watching consumer sentiment and jobless claims closely.

Market Overview

The stock market has enjoyed a robust performance, securing its sixth consecutive week of gains. The tech sector, buoyed by strong earnings from Netflix, has played a pivotal role in this upward trend. The Dow Jones Industrial Average rose approximately 1% over the past week, while the S&P 500 and Nasdaq Composite followed closely with gains of around 0.9% and 0.8%, respectively.

Both the Dow and S&P 500 reached all-time highs during the week, showcasing a shift in investor sentiment. Notably, sectors such as Utilities, Real Estate, and Financials have seen significant gains, indicating a rotation out of megacap tech stocks.

Upcoming Earnings Reports

This week is packed with earnings reports from several high-profile companies:

• Tesla (TSLA): Expected to report on Wednesday, with analysts predicting adjusted earnings per share of $0.60 on revenue of $25.42 billion.
• Boeing (BA): Also reporting on Wednesday, following a tumultuous period marked by labor strikes.
• UPS (UPS): Set to release earnings on Thursday, alongside American Airlines.

Economic Data to Watch

In addition to earnings, several economic indicators will be closely monitored:

• Consumer Sentiment: The final reading from the University of Michigan is due on Friday, with expectations of a slight increase to 69.5.
• Jobless Claims: Weekly jobless claims data will be released on Thursday, providing insight into the labor market's health.
• Fed Beige Book: Scheduled for Wednesday, this report will offer a snapshot of economic conditions across the Federal Reserve districts.

Tesla's Earnings Expectations

Tesla's upcoming earnings report is particularly anticipated following its recent "We, Robot" event. Analysts are optimistic about the company's global deliveries and potential improvements in automotive gross margins. However, concerns linger regarding the feasibility of Tesla's ambitious plans, especially after the unveiling of its driverless robotaxi, the Cybercab.

Consumer and Labor Market Insights

Recent retail sales data for September exceeded expectations, indicating a resilient U.S. economy. However, consumer sentiment remains mixed, with frustrations over high prices persisting despite moderating inflation. The Federal Reserve's stance on interest rates will also be a focal point, as officials express differing views on the need for further cuts.

Weekly Economic Calendar

Monday: Leading Economic Index, Earnings from SAP SE, Nucor Corporation.

Tuesday: Philadelphia Fed Non-Manufacturing Index, Earnings from General Motors, 3M Company.

Wednesday: MBA Mortgage Applications, Existing Home Sales, Earnings from Tesla, Boeing.

Thursday: Initial Jobless Claims, Earnings from UPS, American Airlines.

Friday: Durable Goods Orders, University of Michigan Consumer Sentiment.

As the week unfolds, all eyes will be on these earnings reports and economic indicators, which will shape market sentiment and investor strategies moving forward.

Sources

• Tesla, Boeing, UPS highlight earnings rush: What to know this week, Yahoo Finance.