U.S. stocks near record highs, with tech giants' earnings in focus
1min read Securities Times News, the three major US stock indexes are close to their historical highs. Apple, Microsoft, Amazon, Alphabet and Meta will all report earnings this week, and the market is paying attention to the investment and future profit margins of the tech giants in the field of artificial intelligence.
Last week, Tesla's earnings report exceeded expectations, driving the Nasdaq index higher. The latest data on the inflation indicator favored by the Fed, the October non-farm employment report, and the earnings reports of tech giants will determine the market's direction in early November.
Economic data will test investors' expectations for a soft landing.
On October 30, the US Bureau of Economic Analysis will release its estimate of the US GDP in the third quarter, and it is expected that economic growth will continue to be robust.
On October 31, the latest data on the PCE price index, the inflation indicator favored by the Fed, will be released.
On November 1, the US Bureau of Labor Statistics will release the latest data on the US employment situation, and it is expected that the number of non-farm jobs will increase and the unemployment rate will remain stable in October.
The earnings reports of tech giants will test profit expectations. 37% of the companies in the S&P 500 have already reported quarterly earnings, showing a 3.7% YoY increase in profits, the worst YoY increase in profits since the second quarter of 2023.
Analysts expect that the earnings of the "Big Seven" tech companies this quarter will grow 18.1% YoY, while the earnings of the other 493 companies in the S&P 500 are expected to grow only 0.1% YoY.
