1. Earnings Season Continues
This week marks one of the busiest weeks of the third quarter, with results from many tech and manufacturing companies. Check to see if any of your portfolios hold stock of any companies reporting this week. Earnings can give a lot of insight about companies and sectors. With the ongoing coronavirus pandemic, this week will give us insight into how companies fared over the summer.
A lot of tech companies are reporting this week, which will be interesting for those of you that own any tech stocks or ETFs. As always, pay attention to companies earnings per share, revenue and any potential forecasts.
Here are a few of the top companies reporting this week:
- Monday (10/19) – IBM, Halliburton
- Tuesday (10/20) – Procter & Gamble, Netflix, Lockheed Martin, Texas Instruments, Snap,
- Wednesday- (10/21) – Tesla, Nestle, Verizon, Chipotle, Xilinx, Discover, Equifax, Grubhub, Spirit Airlines
- Thursday- (10/22) – Amazon.com, Microsoft, Intel, Coca-Cola, AT&T, Gilead, Kimberly-Clark, Southwest Airlines, Dunkin Brands
- Friday- (10/23) – American Express
Why it’s important
Earnings season gives investors insight into how well companies and sectors are doing. If you own shares of a company or invest in an ETF, it’s worth paying attention to their financial results. Pay attention to the revenue, earnings per share, EBIT or earnings before interest and taxes and compare it to prior quarters. This information provides details about companies worth buying or selling and can give an indication of how the sector is doing overall.
2. Existing Home Sales
Thursday, October 22 at 10:00 am EST
Existing home sales measures the sale and price of existing homes and is broken down by region- West, Midwest, South, Northeast. It is released on a monthly basis by the National Association of Home Builders (NAHB). While it’s a lagging indicator, it can give investors an idea of the current state of the housing market.
Why it’s important: Existing home sales, along with new home sales and home starts, can help investors see how the real estate market in the U.S. is faring. Since the data lags, it’s not the most reliable source for the latest data points. But if you’re thinking about investing in real estate or own real estate, it’s worth keeping an eye out to see how the market is doing.
3. Initial Jobless Claims
Thursday, October 22 at 8:30 am EST
Released every week, the initial and ongoing jobless claims are reported by the U.S. Department of Labor. It includes people filing for unemployment insurance benefits in the prior week. There are two types- initial which includes people filing for the first time, and continuing, which consists of those who have received benefits before.
Why it’s important:
Jobless claims are a leading indicator of the current employment situation in the country and the health of the economy. This data is a precursor to the monthly unemployment rate from the Bureau of Labor Statistics. After data last week showed the jobless rate rising for the first time in weeks, investors will want to closely watch this week’s release. If the numbers continue to rise or remain near the same as last week’s results, it could be a sign that the coronavirus pandemic is still weighing on the economy.
Written by Moriah Costa.
View the original article at here.