Third-quarter earnings season moves into high gear this week, with Netflix, Tesla, Meta Platforms and Capital One among the companies reporting. CNBC's Investing Club says the market has been hard to please so far, and that few big economic reports leave earnings in the spotlight.
The market has been hard to please this earnings season, and the week ahead brings plenty of chances to change that, according to CNBC's Investing Club. Netflix, Tesla, Meta Platforms and Capital One are among the companies set to report quarterly results in the coming days. No huge economic reports are on the docket, so earnings take center stage.
Bank earnings draw selling
There may be little margin for error, if the reception to last week's bank reports is any indication. Top and bottom-line beats from Goldman Sachs met with selling, while State Street and Bank of America, with more apparent blemishes, got hit even harder.
Since Jim Cramer's early October warning of "a much more difficult backdrop," tensions in the Middle East worsened, and two September inflation reports came in hotter than expected. The durability of the AI spending boom has also been called further into question, and the midterms are about two weeks away.
Capital One reports Tuesday night
The credit-card issuer starts the week's updates on Tuesday night. The Investing Club wants to see sequential expansion in net interest margin, after net interest income came up short last quarter, and better net charge-offs after a high reading in July.
Capital One is expected to report earnings of $5.50 per share on revenue of $16.26 billion, according to LSEG estimates as of Friday. The club notes the shares trade at less than 9 times forward earnings.
Meta faces an AI spending question
Meta Platforms reports after Wednesday's close. The Investing Club wants to know whether management will share actual engagement numbers for Muse, its agentic AI platform assistant, and how it will explain and fund its compute spending.
LSEG expects Meta to report earnings per share of $5.94 on revenue of $63.32 billion, as of Friday.
Other reports to watch
On Wednesday night, Lam Research and Texas Instruments join Meta. Western Digital reports Thursday night. On Tuesday, RTX, GE Aerospace and Northrop Grumman report, and the Investing Club will also listen to what airlines say about consumer health amid rising gas prices and inflation.
Source: CNBC
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