Stocks Set for a Big Week: Tesla, Boeing, and UPS Lead Earnings Reports

Stocks rallied last week, with the Dow Jones Industrial Average gaining 1%, while the S&P 500 and Nasdaq Composite followed closely with increases of 0.9% and 0.8%, respectively. Netflix’s strong earnings powered tech stocks higher, but now the spotlight shifts to Tesla’s upcoming quarterly report, which is scheduled for Wednesday.

Both the Dow and the S&P 500 hit all-time highs during the week. Meanwhile, there was a clear shift out of mega-cap tech stocks and into sectors such as Utilities, Real Estate, and Financials. Utilities soared by 3.4%, leading sector gains, while Real Estate and Financials posted 3% and 2.4% rises, respectively. Small-cap stocks, represented by the Russell 2000 index, outpaced the major indices, closing the week with a 2% gain.

Stocks Poised for Volatility as Earnings Roll In

Earnings season is off to a strong start, with 79% of S&P 500 companies exceeding expectations for the third quarter, surpassing the five-year average of 77%, according to FactSet analyst John Butters. This week will bring earnings from major players like Boeing, General Motors, American Airlines, and UPS, but all eyes are on Tesla, as it prepares to report.

Beyond earnings, critical economic reports are on the horizon. The University of Michigan’s final reading on consumer sentiment and the Federal Reserve’s Beige Book, set for Wednesday, will provide insights into the broader economy. Tesla, fresh off its “We, Robot” event earlier this month, is expected to report adjusted earnings per share of $0.60, with revenue estimated at $25.42 billion. Higher global deliveries and potential growth in automotive gross margins could drive Tesla’s earnings higher in the coming quarter.

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