Earnings Season Is Back

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Alex Partida

Oct 17th 2022  .  3 min read

Earnings season is back

When the opening bell sounded, the indices moved to the upside in tandem. Momentum from the pre-market carried into the open and quickly pushed higher out the gate. 3,700 was a psychological target that the S&P 500 futures looked to test early. Once the market reached 3,700, the momentum fizzled out as big money on Wall Street awaited earnings. 

This week the economic calendar takes a back seat to earnings. Publicly traded companies are scheduled to report financial results every quarter. Investors and traders look at different indicators to determine how the stock price will be affected by the numbers. Some of those factors are earnings per share, income statements, and projections for the future.

Markets can be indecisive in weeks with earnings reports looming. The financial data can be released before or after market closing. Let’s look at the important names to report this week by date.

Tuesday reports

On Tuesday, before the open, Johnson & Johnson (JNJ) will kick off the healthcare sector. JNJ is a leader in the medical world and can be influential on how the market sees other names in healthcare to report. When a leader in a sector reports, it is essential to take note of the tone that the reaction to the report sets. 

On Tuesday, after the close, Netflix (NFLX) will be the first name in the technology sector to report. NFLX has notoriously had massive swings on earnings this year so investors will be watching closely. Reactions are not always based on good or bad earnings rather than expectations. Investors in tech will want to see if Netflix can be the first name to beat their expectations. 

Wednesday reports

On Wednesday, before the open, Advanced Semiconductor Material Lithography (ASML) will look to set the tone for other companies such as Nvidia (NVDA), Advanced Micro Devices (AMD), and Qualcomm (QCOM). Lam Research (LRCX) will also report after the Wednesday bell. 

The most notable name of the week to report comes Wednesday after the close. Tesla Motors (TSLA) is a heavily weighted stock and can significantly impact how the market reacts based on the report. Often the Nasdaq will even get movement when a name this meaningful reports. Tesla has been relatively weak over the past couple of weeks regarding Elon Musk and his ongoing Twitter (TWTR) acquisition. This data has the chance to change course for TSLA or further accelerate the selling pressure within the name.

Thursday reports

On Thursday, Snapchat (SNAP) will release its report after the market closes. The report that Snapchat releases can set the tone for other companies in the advertising industry, such as Meta Platforms (Meta), Google (GOOGL), and Roku (ROKU). Snapchat is a name that often gets overlooked during earnings season, but it is huge in the ad space and should be noted before the bigger names report.

Market closes slowly

The market closed the same way that it traded for the majority of the day, sideways. S&P 500 futures traded within a 20-point range for nearly the entire day and closed in that exact area of the chart. It appears that big money on Wall Street is waiting for some names to report to decide the market’s next direction.

Either way, up or down, 3,700 will be the pivotal line in the sand as this week progresses. 

At the close

The Nasdaq and the S&P 500 were positive to close the session. The S&P 500 futures closed up 2.85%, gaining 102 points, while the Nasdaq futures closed up 3.68%, a gain of 396 points. The Dow followed, closing up 1.88%, adding 557 points.