Stocks Soar as Tech Companies Prepare for Earnings Reports
Tech Stocks Rise as Treasury Yields Ease
Stocks experienced a surge on Tuesday as Treasury yields decreased from their previous highs, providing a boost to tech stocks ahead of major company earnings reports.
Anticipation Builds for Economic Reports
Investors eagerly await this week’s reports on third quarter gross domestic product, scheduled for release on Thursday, as well as September inflation data in the form of the personal consumption expenditures index. Analysts anticipate these numbers will reflect a continued cooling of the economy, aligning with the Federal Reserve’s preference for the core PCE as its inflation gauge.
Debating the Future of Interest Rates
The recent strong labor data has sparked debates among futures traders about whether the Federal Reserve will raise interest rates again this year. While a rate pause in November seems likely, the probability of a rate increase in December stands at approximately 25%. Rising bond yields in recent days indicate that factors beyond Fed rate moves are at play, and sustained higher bond yields could potentially achieve the same cooling effect as a Fed hike.
Insights from Company CEOs
During this earnings season, investors will closely monitor the statements made by company CEOs regarding their observations of the economy and consumer behavior heading into the end of the year.
Meta Platforms Reports
Meta Platforms Inc, the parent company of Facebook and Instagram, is expected to report earnings per share of $3.64 on revenue of $33.6 billion. Analysts will pay attention to updates on the company’s efficiency efforts and advertising business.
IBM Earnings
International Business Machines (IBM), a computing giant, is anticipated to report earnings per share of $2.13 on revenue of $14.7 billion.
Boeing Reports
Boeing Co, a renowned airplane manufacturer, is projected to report a loss per share of $3.23 on revenue of $18.1 billion. Analysts will be eager for insights on production and delivery.
