A Critical Earnings Week for Stocks Has Started

Starting a Busy Week in the Markets

The market has entered the busiest week for third-quarter earnings reports. The results of many major technology companies stand out on the calendar.

The initial results showed a positive start. As of October 24, S&P 500 companies have reported their results, with 29% of them having disclosed their earnings. Analysts expect a 9.2% increase in earnings per share for the third quarter. While this marks the ninth consecutive quarter of positive earnings growth, it falls short of the 12% increase seen in the second quarter of this year.

At the start of the third quarter, expectations were slightly lower; analysts had predicted a 7.9% increase in earnings per share for S&P 500 companies.

This week, five members of the "Fabulous Seven," including Microsoft (MSFT), Alphabet (GOOG), Meta (META), Apple (AAPL), and Amazon (AMZN), will report results, representing nearly a quarter of the S&P 500.

Additionally, other notable companies reporting results this week include Boeing (BA), Visa (V), Starbucks (SBUX), UnitedHealth Group (UNH), Verizon (VZ), Mastercard (MA), Merck & Co. (MRK), Shell (SHEL), Exxon Mobil (XOM), Chevron (CVX), Coinbase (COIN), Caterpillar (CAT), ServiceNow (NOW), Anheuser-Busch InBev (BUD), and Eli Lilly (LLY).

Current Company Results

PayPal (PYPL) shares surged over 14% after the digital payments company significantly exceeded earnings estimates and announced a new partnership with OpenAI.

PayPal reported earnings of $1.34 per share, exceeding Wall Street estimates of $1.21. The company also reported $8.4 billion in revenue, surpassing the anticipated $8.2 billion.

PayPal raised its full-year earnings forecast to a range of $5.11-$5.15.

Moreover, the announcement of PayPal's collaboration with OpenAI to integrate payment solutions into AI platforms further bolstered its shares.

UPS (UPS) reported fourth-quarter revenue forecasts that exceeded Wall Street expectations on Tuesday, resulting in a 14% rise in its shares.

UnitedHealth (UNH) increased its annual profit forecast and reported better-than-expected results on Tuesday, leading to a 4% rise in its shares.

Waste Management (WM) shares fell 2% after reporting third-quarter results. Earnings per share were $1.98, below the expected $2.01.

Whirlpool (WHR) reported better-than-expected results after Monday's close, with its shares increasing 3% in after-hours trading.

The company's revenue was $4.03 billion, exceeding the $3.93 billion estimates. Adjusted earnings per share were $2.09.

Keurig Dr. Pepper (KDP) shares rose 9% after raising year-end sales forecasts and surpassing revenue expectations.

The company reported earnings of $0.54 per share and revenue of $4.3 billion.

Procter & Gamble (PG) shares gained 3% after exceeding first-quarter estimates.

Deckers Outdoor Corporation (DECK) shares fell 8% due to failing to meet forecasts for 2026, as the company cited weak consumer sentiment in the U.S. market.

Blackstone (BX) shares dropped 4% after third-quarter results fell short of expectations.

Union Pacific (UNP) reported a slight increase in profits for the third quarter.

American Airlines (AAL) third-quarter results were not as bad as feared, leading to a 4% increase in its shares.

T-Mobile (TMUS) saw its shares decline 0.6% despite third-quarter earnings exceeding estimates.

STMicro (STM) provided fourth-quarter sales forecasts below market expectations, resulting in a 7% drop in its shares.