MMR

Midterm Elections, Fed Meeting Could Spark Big Stock Moves

Despite a full slate of earnings, U.S. voters could have the biggest impact on stocks

Digital Content Manager
Nov 1, 2018 at 4:23 PM
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The first full trading week of November is set to be a lively one for stocks. Earnings season remains in full swing, with quarterly reports due out from the likes of Dow stock Walt Disney Co (NYSE:DIS), online marketplace Etsy Inc. (NASDAQ:ETSY), dating app service Match Group Inc (NASDAQ:MTCH), and a number of other big names from the media, entertainment, energy, and consumer discretionary sectors.

But bigger-picture news looks poised to drive the daily action. On Tuesday, voters across the U.S. will head to the polls, and some changes could be afoot on Capitol Hill as a result. Meanwhile, the Fed assembles for its two-day meeting on Wednesday, with a policy decision due out on Thursday afternoon. Against this backdrop, don't be surprised to see some major mid-week volatility make landfall on Wall Street.

Below is a brief list of some key market events scheduled for the upcoming week. All earnings dates listed below are tentative and subject to change. Please check with each company's respective website for official reporting dates. 

On Monday, Nov. 5, the Institute for Supply Management (ISM) non-manufacturing index and Markit's services purchasing managers index (PMI) will both be released. Avis Budget (CAR), Diamond Offshore Drilling (DO), Ferrari (RACE), Marriott (MAR), Mosaic (MOS), PG&E (PCG), SeaWorld (SEAS), and Sysco (SYY) will kick off an active earnings week. 

In addition to a closely watched midterm election vote, Tuesday, Nov. 6, will feature the Labor Department's Job Openings and Labor Turnover Survey (JOLTS). Earnings season picks up with a slew of quarterly reports, including Axon Enterprise (AAXN), Bausch Health (BHC), CVS Health (CVS), Eli Lilly (LLY), Etsy (ETSY), Glu Mobile (GLUU), GoDaddy (GDDY), Match Group (MTCH), Papa John's (PZZA), Ralph Lauren (RL), Tableau Software (DATA), Twilio (TWLO), Wendy's (WEN), and Zillow (ZG). 

The two-day Federal Open Market Committee (FOMC) meeting begins on Wednesday, Nov. 7. While they await Thursday's policy statement, traders will digest the MBA mortgage index, the weekly crude inventories report, and the Fed's consumer credit report.

Home entertainment names Roku (ROKU) and DISH Network (DISH) will step into the earnings confessional on Wednesday, as will 21st Century Fox (FOXA), Ctrip.com (CTRP), Dean Foods (DF), Humana (HUM), Keurig Dr Pepper (KDP), Marathon Oil (MRO), Michael Kors (KORS), Monster Beverage (MNST), Qualcomm (QCOM), Square (SQ), Take-Two Interactive Software (TTWO), Sunoco (SUN), TripAdvisor (TRIP), and Wynn Resorts (WYNN).

The Fed's statement is due out at 2:00 p.m. ET on Thursday, Nov. 8 -- and while no monetary policy changes are expected, traders are likely to read carefully into the committee's language. The usual report on weekly jobless claims is also set for release, while Dow stock Walt Disney (DIS) will unveil earnings. Activision Blizzard (ATVI), Cheniere Energy (LNG), Crocs (CROX), DR Horton (DHI), Dropbox (DBX), Funko (FNKO), Hertz Global (HTZ), NRG Energy (NRG), Olympic Steel (ZEUS), Skyworks Solutions (SWKS), and Yelp (YELP) will also report. 

The week will end with inflation data on Friday, Nov. 9, with the producer price index (PPI) and core PPI due out. The preliminary University of Michigan consumer sentiment index and data on wholesale inventories are also on the docket, while New York Fed President John Williams, Philadelphia Fed President Patrick Harker, and Fed Vice Chair Randal Quarles all have speaking engagements. E.W. Scripps (SSP), Moneygram (MGI), Potbelly (PBPB), and Tribune Media (TRCO) will release their quarterly earnings. 

 

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