As the first trading day of November approaches, market watchers are focusing on key economic indicators and corporate earnings, following a robust rally in October for the S&P 500 and Nasdaq.
Investors will be closely monitoring jobs data this week, though the ongoing federal government shutdown, which began on October 1, has resulted in the absence of the Labor Department’s monthly employment report traditionally released on the first Friday of each month. Instead, attention will shift to private organizations for insights into employment trends. The ADP will publish its monthly hiring report on Wednesday at 8:15 a.m. ET, following the release of preliminary data each Tuesday. Last week, ADP reported that private employers added an average of 14,250 jobs per week over the four weeks ending October 11. Economists project that private-sector jobs will have gained 35,000 in October, a significant rebound from the 32,000 job losses observed in September.
Earnings reports are also a focal point as the market continues to process information from a flurry of corporate results. In the past week, major tech companies, including Meta Platforms, Microsoft, Amazon, and Apple, reported their earnings, and several others are set to follow this week. Notably, DuPont is scheduled to release its third-quarter earnings on Thursday. This follows its recent spinoff of Qnity Electronics, which will officially begin trading separately under the ticker “Q” on Monday. Shareholders will receive one share of Qnity for every two shares of DuPont they own. The remaining DuPont will concentrate on sectors such as healthcare, water, and diverse industrials.
Eaton, another key player in the market, will report its third-quarter results before Tuesday’s opening bell, continuing to capitalize on the growing demand from data centers supporting artificial intelligence applications. The company previously adjusted its earnings guidance, causing some volatility in share prices. Investors will be eager to see whether Eaton can deliver better-than-expected results.
The week will also see the performance of Solstice Advanced Materials, which was spun off from Honeywell. Having commenced trading amidst a backdrop of fluctuating share prices, its earnings report on Thursday will provide insight into management’s expectations for the coming quarters.
On the restaurant front, Texas Roadhouse will report its third-quarter earnings post-market on Thursday. The restaurant industry is grappling with rising food prices, particularly beef, which recently reached all-time highs. While Texas Roadhouse has previously shown resilience amid these challenges, investors will want to hear how the company is navigating the pressures of food inflation.
The economic calendar for the week includes upcoming reports on auto sales and the consumer sentiment index from the University of Michigan. On Monday, the ISM manufacturing report for October will be released, followed by the ADP’s national employment report on Wednesday. Additionally, various corporations will report their results throughout the week, with significant attention placed on events before and after the market closes.
As investors remain vigilant, the balance between upcoming economic data and earnings season will undoubtedly shape market sentiment in the days ahead.
