Weekly Stock Market Update & SPY Technical Analysis
Earnings will take center stage this week as investors anticipate reports from major players like Tesla, Amazon, Coca-Cola, and Boeing. Last week, Taiwan Semiconductor (TSM) and Netflix exceeded expectations, driving their shares, and the broader market, higher. Markets ended the week near record highs, and this week's earnings results will determine whether those gains can hold.
With Netflix and TSM setting a high bar, Tesla and Amazon will need to deliver strong results to fuel a similar rally. For Tesla, profitability will be in the spotlight, while Amazon's focus will be on revenue growth.
Tesla's net income dropped 45% in the last quarter, leading to a significant drop in its stock despite revenue growth. The company is expected to hit revenue targets this time, thanks to strong delivery numbers, but it must improve profit margins to truly impact its share price. Following a stock decline after the RoboTaxi event, a disappointing earnings report could deal a heavy blow to Tesla and the broader electric vehicle (EV) sector.
Beyond earnings, investors will also focus on the release of the Federal Reserve's Beige Book and several Fed speeches throughout the week. These speeches aren’t expected to offer new insights, but will provide updates on the Fed's monetary policy stance and economic conditions across the 12 Federal Reserve districts.
Finally, the last reading of October’s Consumer Sentiment report is due on Friday. Analysts expect a slight uptick from 68.9 to 69.0. The lowest sentiment reading this year came in June at 66.4, while the highest was 79.4 in March. As we approach the holiday season, a rise in consumer sentiment would be a positive signal for investors.