The Week Ahead 06.11.2023

Ahead This Week

Economic announcements will be somewhat relaxed this week relative to last week. Starting off on Wednesday, the Chairman of the Federal Reserve, Jay Powell, will hold a press conference after last week’s decision by the US central bank to continue its pause on rate rises. Markets have taken confidence from both that decision and the weak job numbers released on Friday, a potential indication that the US economy may be slowing. On the 9th attention will turn to China, where monthly inflation data will be released. The current rate stands at 0%. Following that, focus will turn to the UK on the 10th with the release of quarterly GDP numbers. Year-on-year growth in the UK economy is estimated to be up 0.5%.

Earnings

Some big names will release their earnings this week. Starting off, Berkshire Hathaway will reveal their Q3 earnings on the 6th. The next day, the world’s largest oil producer Saudi Aramco will publish its Q3 earnings on the 7th. With the recent rally in oil prices, it will be interesting to see if it filters through to strong earnings for the oil major. Finally, Walt Disney will publish its quarterly earnings on the 8th with investors keen to hear what Bob Iger has planned next for the company.

Chart of the Week

So far, six of the seven 'Magnificent Seven' have reported their earnings with the majority showing strong EPS growth.  Additionally, the weekly performance following each release was positive for most except for Alphabet as it missed analyst revenue estimates within its cloud business.

Note: No 5-day stock movement is available for Apple as they only released their earnings at the end of last week. The market is still awaiting Nvidia’s results over the coming weeks.