What To Expect in the Markets This Week

Coming up: Presidential election, Fed interest rate decision, earnings from Palantir, Novo Nordisk, Toyota

Key Takeaways

• The 2024 presidential election is on Tuesday.
• The Federal Reserve will announce its interest rate decision on Thursday, followed by Fed Chair Jerome Powell’s press conference.
• Palantir, Microchip Technology, and Arm Holdings are among the technology firms reporting this week, while pharmaceutical companies Novo Nordisk, Gilead Sciences, and Vertex also will issue financial reports.

The presidential election on Tuesday will attract a lot of attention from market watchers, as will Thursday’s Federal Reserve decision on whether to again cut interest rates. Fed Chair Jerome Powell’s remarks on Thursday could set the tone for future action from the central bank.

Technology firms Palantir Technologies (PLTR), Microchip Technology (MCHP), and Arm Holdings (ARM) will release quarterly financial updates this week, along with pharmaceutical providers Novo Nordisk (NVO), Vertex Pharmaceuticals (VRTX), and Gilead Sciences (GILD). 

 Monday, Nov. 4

• Factory orders (September)
• Vertex Pharmaceuticals, Palantir Technologies, Constellation Energy (CEG), and Marriott International (MAR) report earnings

Tuesday, Nov. 5

• U.S. trade deficit (September)
• S&P Global services PMI (October)
• ISM services PMI (October)
• U.S. presidential election
• Ferrari (RACE), Apollo Global Management (APO), Microchip Technology, and Yum! Brands (YUM) report earnings

Wednesday, Nov. 6

• Federal Open Market Committee (FOMC) meeting begins
• Novo Nordisk, Toyota Motor (TM), Qualcomm (QCOM), Honda Motor (HMC), Arm Holdings, Gilead Sciences, and CVS Health (CVS) report earnings

Thursday, Nov. 7

• Initial jobless claims (Week ending Nov. 2)
• U.S. productivity and costs (Third Quarter)
• Wholesale inventories (September)
• FOMC interest rate decision
• Federal Reserve Chair Jerome Powell press conference
• Consumer credit (September)
• Arista Networks (ANET), Duke Energy (DUK), Airbnb (ABNB), Warner Bros. Discovery (WBD), and News Corp. (NWSA) report earnings

Friday, Nov. 8

• Consumer sentiment – preliminary (November)
• NRG Energy (NRG) and Paramount Global (PARA) report earnings

Investors Focusing on Election Day, Fed Interest Rate Decision, Powell Comments

The presidential election on Tuesday will be in the spotlight, with the results likely to have an impact on the economy in the coming year.

Market watchers will also be closely following several economic releases this week, with focus on the Thursday conclusion of the Federal Open Market Committee (FOMC) meeting, where the central bank will decide whether to again adjust interest rates.

The Fed’s decision follows its move to lower interest rates by half a percentage point at its last meeting in September, taking the rate to 4.75% to 5%. Investors are pricing in another quarter-point cut at this meeting, according to the CME Group FedWatch tool. Market participants will also be tuned in to Fed Chair Jerome Powell’s press conference Thursday afternoon, where he is expected to talk about the central bank’s analysis of the economy and provide guidance on the Fed’s path for interest rate cuts in coming quarters. Other Fed officials will be in a blackout period that prohibits them from discussing monetary policy. 

Besides the election, investors on Tuesday will also get updated Purchasing Managers’ Index (PMI) data on the services sector and the September update on the U.S. trade deficit. Information about the U.S. consumer is also set for release this week, with updated data on consumer credit levels released on Thursday and the first look at November consumer sentiment coming on Friday.

Investors Watching for Earnings from Palantir, Novo Nordisk, Toyota 

Data analytics software firm Palantir Technologies leads this week’s corporate earning reports when it releases its financial update on Monday. Asset management firm Ark Invest recently cited the company’s software products as being a beneficiary from artificial intelligence (AI) trends, with the company’s share price rising more than 140% this year. Its third-quarter report comes after it raised its full-year guidance in its most-recent earnings report in August. 

Other tech firms are set to report this week, including Microchip Technology on Tuesday and Arm Holdings on Wednesday. 

Danish pharmaceutical firm Novo Nordisk, the maker of weight-loss drugs Ozempic and Wegovy, will report its earnings on Wednesday, coming after the 25% revenue growth it reported in the prior quarter failed to meet analyst estimates. Gene-editing technology provider Vertex Pharmaceuticals will report on Monday and HIV-treatment maker Gilead Sciences issues its financials on Wednesday. 

Drugstore chain CVS Health also will release its quarterly earnings on Wednesday, following its decision last month to replace Chief Executive Officer (CEO) Karen Lynch with David Joyner, who most recently ran CVS subsidiary Caremark.

Media company Paramount Global’s report on Friday follows its announcement it would eliminate 2,000 jobs as it looks to cut costs. Warner Bros. Discovery and News Corp. will issue their quarterly financials on Thursday.

Foreign automakers are also on the schedule this week, with Italy’s Ferrari reporting on Tuesday and  Japan’s Toyota Motor issuing its financial report on Wednesday.