The biggest earnings week ahead comes at an important time for the US stock market. The Nasdaq Composite and Nasdaq 100 are both trading below their respective 100-day moving averages, putting the sellers more in control from a technical perspective. Next week’s calendar brings Microsoft, Alphabet and Amazon, along with a broad mix of semiconductor, industrial, consumer and energy companies. The question is straightforward: Can earnings and guidance give buyers a reason to step back in, or will the results open the door for another shove lower?
The technical backdrop: Buyers have work to do
The technology-heavy indices head into the week with their 100-day moving averages overhead and their 200-day moving averages looming below:
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Nasdaq Composite: Trading near 26,022, below its 100-day moving average at 26,255. The 200-day moving average is at 24,922, about 4.23% below the current price.
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Nasdaq 100: Trading near 29,037, below its 100-day moving average at 29,573. Its 200-day moving average is at 27,836, about 4.14%% below the current price.
For buyers, the first step is to get back above those 100-day moving averages and stay above. That would take some of the pressure off and give traders something positive to lean against.
Absent that, rallies can still be corrections within a more bearish technical picture. The 200-day moving averages become increasingly important downside targets if the selling continues. They are not guaranteed destinations, but traders need to know where they are.
Wednesday and Thursday bring the heavyweights
Wednesday after the close is a key event, with Microsoft and Alphabet reporting alongside ServiceNow, KLA and other widely followed names.
For Microsoft, the focus will be on Azure cloud growth, demand for AI services, and whether the spending needed to build that business is translating into revenue and profits. For Alphabet, traders will watch search advertising, Google Cloud, and how AI is affecting both the opportunity and the cost of doing business.
Amazon follows Thursday after the close. AWS cloud growth, retail margins and its own investment spending will help shape the market’s assessment of the technology outlook.
The common thread? Investors will want evidence that spending is producing results—and guidance that supports more growth ahead.
The key releases for the week.
Monday, October 26
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Before the open: Verizon.
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After the close: Celestica, Cadence Design Systems, Rambus, and Whirlpool.
Celestica, Cadence, Rambus and Whirlpool get the week started with a look across technology infrastructure and the semiconductor supply chain.
Tuesday, October 27
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Before the open: SoFi, UPS, Coca-Cola, Corning, Freeport-McMoRan, PayPal and S&P Global.
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After the close: Robinhood, Seagate, Visa, and Waste Management.
UPS provides a read on shipping activity, while Visa and PayPal offer insight into payment volumes and consumer spending. Robinhood adds a look at retail trading activity.
Wednesday, October 28
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Before the open: Amphenol, Boston Scientific, Vertiv, GE Vernova, UBS, ADP and Phillips 66.
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After the close:Microsoft, Alphabet, ServiceNow, KLA, Carvana, FedEx, Fortinet, T-Mobile and Chipotle.
This is a particularly busy day. Vertiv, Amphenol and GE Vernova bring infrastructure and power demand into focus before the technology heavyweights (Microsoft and Alphabet) report after the close.
Thursday, October 29
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Before the open: Caterpillar, Carrier, Eli Lilly, Vulcan Materials, STMicroelectronics and L3Harris.
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After the close:Amazon, Intel, Sandisk, Roblox, Reddit, Twilio, Coinbase, Starbucks and Rivian.
Caterpillar offers a window into equipment demand and business investment. After the close, Amazon leads a wide-ranging group covering chips, consumer spending, digital advertising and cryptocurrency trading.
Friday, October 30
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Before the open: Exxon Mobil, Chevron, BP, Regeneron, AstraZeneca, and General Dynamics.
Energy takes a prominent role to finish the week, with traders watching production, margins, spending plans and management’s outlook.
Watch the reaction as closely as the results
An earnings beat does not automatically mean a stock moves higher. Expectations matter. Guidance matters. So does what has already been priced in (watch the technicals for clues on what is priced in).
If companies deliver good numbers and their shares cannot rally—or an early rally quickly fades—that tells traders something about the appetite to buy. Conversely, disappointing results followed by a recovery can signal that sellers had their shot and could not keep control.
For the broader technology market, the technical roadmap is clear. Get above the 100-day moving averages and stay above, and the buyers improve their position. Stay below, and the sellers retain the advantage, with the 200-day moving averages waiting underneath.
The earnings will provide the headlines. The price action will tell us what traders think of them.
This article was written by Greg Michalowski at investinglive.com.