Another Exciting Week Begins for Investors

After one of the busiest weeks of the year, with only eight weeks left until 2025, investors are preparing for another busy week. The first week of November will be filled with company earnings announcements.

The market closed last week with a significant rise; Amazon (AMZN)'s earnings, announced on Friday, boosted technology stocks and lifted the NASDAQ by 2.5%. The S&P 500 (1%) and Dow Jones (1%) saw more modest increases.

The Federal Reserve cut interest rates as expected. Additionally, President Trump’s meeting with Chinese President Xi Jinping in South Korea was seen as an important step in easing trade tensions between the two countries.

Next week, a key topic that will attract investors' attention is Artificial Intelligence trading. Companies like Palantir (PLTR), AMD (AMD), Supermicro (SMCI), and Constellation Energy (CEG) are set to announce their quarterly results. Many other companies within the S&P 500 are also expected to report results.

Looking at economic data, the ongoing government shutdown may cause delays in the monthly employment figures for two consecutive months. Therefore, the private sector employment data from ADP stands out as the week's most significant labor market update.

Data on manufacturing and services from the Institute for Supply Management and S&P Global will also be among the key highlights of the week. Additionally, the initial results of the November consumer sentiment survey from Michigan University will be closely monitored.

In the Fed meeting in October, a quarter-point cut was expected. However, according to analysts at Bank of America, Jay Powell’s indication that another cut in December is not assured during his press conference negatively impacted market risk appetite.

Analysts expressed that the Fed is facing an uncertain process due to a lack of economic data. While analysts from BNP Paribas predict that cuts will continue in the December meeting, Bank of America analysts believe there will be no new cuts during the Powell era.

The market takes this situation seriously; the possibility of another quarter-point cut during the December meeting is currently priced in at only 63%.

The decision from last week drew attention both for the cuts and the internal disagreements within the Fed. Jeff Schmid, president of the Kansas City Fed, advocated against making cuts, while some other presidents opposed this view.

The long-anticipated trade discussions between Trump and China indicate that there has been some agreement between the parties. However, this time the scope of the agreement is quite broad. The U.S. has promised to halve tariffs related to fentanyl, while China has committed to suspending export controls on rare earth materials for one year.

An important uncertainty for investors is whether Nvidia can sell its high-quality chips to China, as questions regarding this remain unanswered. Answers to these questions are likely to draw investors' attention in the coming days.

Economic Data and Earnings Calendar

Economic Data:
- S&P Global Manufacturing PMI, October final reading (previous: 52.2)
- ISM Manufacturing, October (forecast: 49.2, previous: 49.1)
- ISM Prices, October (previous: 61.9)
- ISM New Orders, October (previous: 48.9)
- ISM Employment, October (previous: 45.3)
- Construction Spending, month-over-month September
- Total Vehicle Sales, October (forecast: 15.5 million, previous: 16.4 million)

Earnings Calendar:
- Palantir (PLTR)
- Vertex Pharmaceuticals (VRTX)
- Williams Companies (WMB)
- Simon Property Group (SPG)
- Realty Income Corporation (O)
- IDEXX Laboratories (IDXX)
- Ares Management (ARES)
- Diamondback Energy (FANG)
- PSEG (PEG)
- Ryanair (RYAAY)
- ON Semiconductor (ON)
- Loews Corporation (L)
- BWX Technologies (BWXT)
- Coterra Energy (CTRA)
- Lattice Semiconductor (LSCC)
- Hims & Hers (HIMS)
- Vornado Realty Trust (VNO)