Next week will bring a succession of earnings announcements from major companies in the US stock market, with the FOMC also scheduled to meet. Attention is focused on earnings trends among AI- and semiconductor-related companies and developments in crude oil prices, which could determine the market's direction.
Next week, earnings announcements from major companies in Japan and overseas will reach a peak. Particular attention is expected to focus on the earnings results and capital expenditure plans of hyperscalers such as Alphabet, Microsoft and Amazon. Developments in AI-related stocks and investor expectations are likely to influence the direction of the broader market.
The Federal Open Market Committee (FOMC) is also expected to meet next week, with interest rates expected to remain unchanged. The outlook for future rate hikes will be assessed in light of the Chair's press conference, while some believe that geopolitical developments following the midterm elections and changes in crude oil prices will be key to monetary policy in December.
A number of economic indicators are also scheduled for release, including the August home price index, the S&P/Case-Shiller Home Price Index, durable goods orders, personal income and the deflator, and GDP. The FOMC press conference will be held on the 28th, with attention focused on the interest-rate outlook and the market reaction.
The companies scheduled to report include Verizon and Nucor on the 26th; Teradyne, Boeing, Coca-Cola, Novartis, Corning, UPS and Visa on the 27th; Ford, Alphabet and Microsoft on the 28th; Amazon, Caterpillar, Intel and Eli Lilly on the 29th; and Chevron and Exxon Mobil on the 29th-30th.
Overall, the earnings bar remains high for AI- and semiconductor-related stocks, although there may be instances in which strong earnings receive a straightforward positive response. With crude oil prices remaining volatile, longer-term interest-rate trends may influence the direction of share prices.