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This week on Wall Street

Earnings to Election … Here’s what to look out for in the week ahead. Key Earnings on Deck This week, several major companies will release earnings reports that are likely to stir market activity. On Tuesday, General Electric (GE), Lockheed Martin (LMT), and Verizon (VZ) headline the list of reporting companies. Other key reports follow on Wednesday, with Tesla (TSLA), Boeing (BA), and Coca-Cola (KO) set to announce their quarterly results. Spirit Airlines (SAVE), Southwest Airlines (LUV), and Boston Beer Company (SAM) will close out the week on Thursday.  Economic Data to Watch In addition to earnings, crucial economic data is expected this week. On Wednesday, the National Association of Realtors will release the latest Existing Home Sales report. Forecasts predict a modest increase from the previous month’s 3.86 million sales to 3.88 million. The Services PMI and Manufacturing PMI are due on Thursday, and are expected to show continued strength, with the Services PMI forecasted at 55.0 and the Manufacturing PMI at 47.5 (Source: National Association of Realtors). Investors will also be looking ahead to Friday’s final release of the Michigan Consumer Sentiment Index, which is expected to remain flat at 68.9.

Election Impact and Market Predictions The U.S. presidential election is now just 14 days away. Historically, stock market performance has predicted 83% of elections, with a rising S&P 500 often signaling an incumbent party win. Some experts are forecasting that the S&P 500 could reach 6,200 by year-end, which would translate into a 30% annual gain and the largest since 1997. Billionaire Stanley Druckenmiller — who previously funded Nikki Haley’s campaign — is predicting this year will be a 17% outlier, as he recently stated that Wall Street is “very convinced” former President Trump will return to the White House, citing movement in bank stocks and crypto as indicators. Still, an October survey from The Wall Street Journal shows economists believe Trump’s economic policies would lead to higher inflation and deficits compared to Vice President Harris’s plans.

One more thing: The last full-sized K-Mart in the mainland U.S. closed yesterday in Bridgehampton, New York. The closure marks the near-complete shutdown of the once-massive discount retailer which had 2,000 locations in the U.S., leaving only a small store in Miami and a few locations in Guam and the U.S. Virgin Islands.