1. Gross Domestic Product
Thursday, October 29 at 8:30 AM ET
The preliminary reading of third-quarter gross domestic product (GDP) will be released by the U.S. Bureau of Economic Analysis. GDP is a measure of the economic conditions of a country during a set period of time. There are generally three readings of the same quarter, as more data is released. It’s the broadest measure of the economic health of the country and a good indicator of how things are faring. Keep in mind that the data lags and doesn’t necessarily reflect the current economic conditions.
Why it’s important: The economy declined by -31.4% in the second quarter as a result of closures and social distancing measures from the coronavirus pandemic. Economists and analysts have forecasted that the economy picked up over the summer months. If the economy contracted, that could cause some moves in the stock market, as it would indicate things have not recovered as expected.
2. Core Durable Goods
Tuesday, October 27 at 8:30 AM ET
Durable goods are a measure of the change in new orders manufacturing items. Core durable goods exclude aircraft and transportation, as it’s more volatile. The monthly figures from the U.S. Census Bureau are an economic indicator as it gives insight into the supply chain. A high number indicates the economy is doing well, while a low number indicates the economy is on a downward trajectory.
Why it’s important: When businesses are confident or think that consumers are going to start spending more, they tend to prepare by ordering goods. That’s why durable goods are such a closely watched number. It can tell investors if the economy is on it’s way to an upward or downward swing. This month’s durable goods numbers are worth paying attention to, as the holiday season is just around the corner.
3. More Earnings Results
Companies continue to report their third-quarter financial results this week, with big names like Microsoft, Boeing, and Apple. 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 and this week should be a chock-full of information.
Here are a few of the top companies reporting this week:
- Monday (10/26) – Hasbro, Chegg, Cathay, Crane, Knoll
- Tuesday (10/27) – Microsoft, Pfizer, Merck & Co, AMD, 3M, Caterpillar, Jetblue, Tata Motors
- Wednesday- (10/28) – Visa, Boeing, Gilead, Ford, AIG, Pinterest
- Thursday- (10/29) – Apple, Alphabet, Amazon.com, Comcast, Facebook, Yum! Brands, Kellog
- Friday- (10/30) – Exxon Mobil, Chevron, Glencore, Under Armour
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.
Written by Moriah Costa.
View the original article at here.