We’re starting this week with oil prices continuing to rise in the face of the “inflation is transient” crowd, and with tons of earnings to watch for the week of Oct. 18.
Adding to the market jitters on Monday morning was a rise in interest rates and the 10-Year Treasury yield shooting back above 1.60%. I’ve had both of these macro movers on my radar for a while now and have given traders proper warning, so be sure to stay tuned!
Due to this, I expect we’ll see shocking moves in both markets that will unsettle global risk assets for a bit longer.
Taking a look at the global financial market, China’s GDP has remained weak. If you’ve been following me for awhile, then you know that China is not where you want to invest your money right now.
Not only is the Chinese Communist Party hell bent on curtailing corporate influence — i.e. economic growth — but organically the country is facing stronger headwinds than it’s seen in over a decade.
And that’s something to be on the lookout for.
Charts that Matter and 3 Stock Earnings to Watch the Week of Oct. 18
The Russell 2000 is starting to build momentum, more so than the Nasdaq…
We’ll see if the mega-cap stock trend to dominate the rest of the market — like it has the last few years — stays intact this earnings season. I suspect we’ll see mid- and small-cap stocks start to catch up big time.
Speaking of earnings seasons, the week of Oct. 18 is the meat of the biggest reports. What makes this week so special is we’ll get numbers across many different industries, giving us a good handle on the economy.
One earnings report I’m on the watch for the week of Oct. 18 is from Halliburton Co. (NYSE: HAL). Earnings come out before the bell Tuesday and estimates are for $0.27 a share for quarter three (Q3).
With a price-to-earnings ratio of 28 — which isn’t quite nosebleed high — a big beat could lead to a big pop up in the stock. As oil looks set up to rip, I’m particularly curious to see how profitable prices above $65 a barrel is for drilling companies like Halliburton.
I’m also looking at Netflix Inc. (Nasdaq: NFLX), which reports after the market close on Tuesday.
It’s still too early to see how the hugely popular “Squid Game” affected the number, so I’m looking forward to the next report. The show is reportedly worth $900 million in “impact value,” an internal metric used by the company, and it only cost $21.4 million to produce.
But I see a stock that’s stretched and priced to perfection — with downside in the mid $500-range on a short estimate or guidance.
An implied one-day move after earnings is 5.42%, and I expect that’s doubled on a miss….
Last but certainly not least, another important earnings report to watch the week of Oct. 18 is Intel Corp. (Nasdaq: INTC).
Intel reports Thursday after market close, and it’s important in showing how big an effect the semiconductor shortage is having on the stock market.
The stock has been stuck in the low $50-range but I’m more interested in what the company says about the state of the sector and industry. I’m also curious to hear any updates on the outlook for improvements, or lack thereof, in production.
Let me know what you think about my list of earnings to watch this week!
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