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Tesla & Netflix Earnings plus China GDP data | THE WEEK AHEAD

A preview of the news, earnings, and economic data to expect in the week ahead. This week includes Q3 earnings (highlights including Tesla and Netflix), China releases 3rd quarter GDP data, the UK, the Eurozone and Canada release CPI data and we will monitor the break higher in copper prices and what it implies for the global recovery.

What happened this week

5-day performance as of Friday October 15, 4pm CET

Source: Finviz.com

It was déjà vu this week with stock markets repeating last week’s pattern of starting off weak and reversing the losses in the second half of the week. The Dow Jones importantly crossed back over the psychological 35,000 mark in a sign of strength that would suggest the correction may well be over.

Other parts of the world also saw their stock indices rebound with for once the UK’s FTSE 100 a top performer thanks to the proliferation of commodity stocks in the index. The FTSE reached a new post-pandemic high. Interestingly, given the sharp decline in the Japanese yen, the rally in the Nikkei was somewhat lacklustre.

There was something of a rotation across commodity markets with copper breaking out while crude oil markets steadied at their highs and gold hit $1800 per oz but pulled back thereafter.

The dollar fell back from its 1-year peak thanks to a rebound in the euro, while the British pound hit its highest in nearly a month and the Aussie dollar as good as reversed its entire September decline.

Top 5 stories for the coming week:

The 5 events, news stories or market price action that could shape the week ahead:

1.     Tesla earnings

Despite headlines about Cathie Wood and other high profile investors selling the stock, Tesla has rallied back up to $800 before the release of Q3 results. The optimism comes as delivery data showed Tesla seems to have overcome the global chip shortage that has hampered other carmakers. A good set of results to match the deliveries could see TSLA testing its record high near $900.

2.     Netflix earnings

Judging by the price action in the run up to Q3 earnings, investors appear happy to look through the likely post-lockdown decline in subscriber growth and reappreciate the dominant position Netflix holds in online streaming, despite new rivals including Disney+. The shares are at a record high, reaching $640 heading into Q3 results.

3.     China GDP

The consensus expectation is for China to have achieved 5.2% y/y growth over Q3. That’s sharply down from 7.9% in Q2 but the average of the two is in keeping with typical China GDP growth targets. Given the rising inflation, investors will want to see growth from major economies like China hold up to put to bed fears of stagflation. Should these numbers disappoint, stagflationary jitters could ripple out through risky assets like equities.

4.     Global Inflation

US CPI growth returned to a 13-year high in September at 5.4% y/y. The supply chain bottlenecks and disruptions that are causing the higher prices in the US are part of a global phenomenon so we can expect to see similar affects in the UK, Europe and Canada when data comes out this week. Central banks are beginning the process of tapering bond purchases so these inflation figures will be a good gauge for which of them begin raising rates first. Recent speculation suggests the Bank of England is near the top of the list.

5.     Copper breakout

The breakout on display in the chart below, powered by the double digit weekly gain seen in our performance table would appear to show Copper is ending its rut. Strength in ‘Dr Copper’ is normally associated with expectations for a strong global economy - perhaps markets are pricing in good things from China data this week ?

 

Source: The Market Ear

Economic Calendar:

 

 

TIME (GMT)

Country

Event

CONSENSUS

PREVIOUS

Mon 18

02:00

CNY

Gross Domestic Product (YoY)(Q3) 

5.20%

7.90%

 

02:00

CNY

Industrial Production (YoY)(Sep) 

4%

5.30%

 

02:00

CNY

Retail Sales (YoY)(Sep) 

3%

2.50%

Wed 20

01:30

CNY

PBoC Interest Rate Decision 

3.85%

3.85%

 

06:00

GBP

Consumer Price Index (YoY)(Sep) 

-

3.20%

 

09:00

EUR

Consumer Price Index (YoY)(Sep) 

3.40%

3.40%

 

12:30

CAD

Consumer Price Index (YoY)(Sep) 

-

4.10%

Thur 21

08:00

EUR

Markit PMI Composite(Oct) PREL  

-

56.2

Fri 22

06:00

GBP

Retail Sales (MoM)(Sep) 

-

-0.90%

 

08:00

EUR

IFO – Expectations(Oct) 

-

97.3

 

08:30

GBP

Markit Services PMI(Oct) PREL  

-

55.4

 

12:30

CAD

Retail Sales (MoM)(Aug) 

-

-0.60%

 

Source: FXStreet.com

 

Corporate earnings:

 

TIME

COMPANY

EVENT

Oct-18

Charles Schwab

Q3 2021 Earnings

Oct-18

Philips N.V.

Q3 2021 Earnings

Oct-18

State Street Corp.

Q3 2021 Earnings

Oct-18

Sandvik AB

Q3 2021 Earnings

Oct-19

Johnson & Johnson

Q3 2021 Earnings

Oct-19

Procter & Gamble Co.

Q1 2022 Earnings

Oct-19

Netflix Inc.

Q3 2021 Earnings

Oct-19

Philip Morris Inc.

Q3 2021 Earnings

Oct-19

Bank of New York Mellon

Q3 2021 Earnings

Oct-19

Telefon AB L.M.Ericsson (A)

Q3 2021 Earnings

Oct-19

Ericsson (Telefon AB L.M.Ericsson) (B)

Q3 2021 Earnings

Oct-19

Travelers Inc (Travelers Companies)

Q3 2021 Earnings

Oct-19

Deutsche Börse AG

Q3 2021 Earnings

Oct-19

Nestle India Ltd Dematerialised

Q3 2021 Earnings

Oct-20

Tesla

Q3 2021 Earnings

Oct-20

Verizon Inc.

Q3 2021 Earnings

Oct-20

Abbott Laboratories

Q3 2021 Earnings

Oct-20

NextEra Energy Inc

Q3 2021 Earnings

Oct-20

IBM Corp. (International Business Machines)

Q3 2021 Earnings

Oct-20

Biogen Inc

Q3 2021 Earnings

Oct-20

EQT AB Registered Shs

Q3 2021 Earnings

Oct-20

Kinder Morgan Inc (P)

Q3 2021 Earnings

Oct-20

Discover Financial Services

Q3 2021 Earnings

Oct-20

PPG Industries Inc.

Q3 2021 Earnings

Oct-20

Nasdaq Inc

Q3 2021 Earnings

Oct-20

Las Vegas Sands Corp.

Q3 2021 Earnings

Oct-20

Svenska Handelsbanken AB (A)

Q3 2021 Earnings

Oct-21

PayPal Inc

Q3 2021 Earnings

Oct-21

Danaher Corp.

Q3 2021 Earnings

Oct-21

Intel Corp.

Q3 2021 Earnings

Oct-21

AT&T Inc. (AT & T Inc.)

Q3 2021 Earnings

Oct-21

SAP SE

Q3 2021 Earnings

Oct-21

Blackstone

Q3 2021 Earnings

Oct-21

Union Pacific Corp.

Q3 2021 Earnings

Oct-21

Snap Inc. (Snapchat)

Q3 2021 Earnings

Oct-21

Marsh & McLennan Cos. Inc.

Q3 2021 Earnings

Oct-21

Chipotle Mexican Grill Inc.

Q3 2021 Earnings

Oct-21

Nordea Bank Abp Registered Shs

Q3 2021 Earnings

Oct-21

Volvo AB (A)

Q3 2021 Earnings

Oct-21

NHN Corp

Q3 2021 Earnings

Oct-21

Volvo AB (B)

Q3 2021 Earnings

Oct-21

Barclays plc

Q3 2021 Earnings

Oct-21

SVB Financial Group Shs

Q3 2021 Earnings

Oct-21

Southwest Airlines Co.

Q3 2021 Earnings

Oct-21

Swedbank AB

Q3 2021 Earnings

Oct-22

Reliance Industries Ltd Dematerialised

Q2 2022 Earnings

Oct-22

Honeywell

Q3 2021 Earnings

Oct-22

American Express Co.

Q3 2021 Earnings

Oct-22

Chugai Pharmaceutical Co. Ltd.

Q3 2021 Earnings

Oct-22

Roper Industries Inc.

Q3 2021 Earnings

Oct-22

Sika AG

Q3 2021 Earnings

Oct-22

Schlumberger N.V. (Ltd.)

Q3 2021 Earnings

Oct-22

China Telecom Corp. Ltd.

Q3 2021 Earnings

Oct-23

ICICI Bank Ltd

Q2 2022 Earnings

 

Source: markets.businessinsider.com/earnings-calendar

 

Good luck trading this week!

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