The U.S. government shutdown enters its second month and is on the verge of becoming the longest in history. Wall Street, however, couldn't seem to care less.
All three major equity indexes hit record highs last week, closing up more than 0.7%, with the Nasdaq Composite the standout, rising 2.2%.
That is because the artificial-intelligence trade is alive and well, with Big Tech companies, which predominantly trade on the Nasdaq, reiterating that they will continue to spend hundreds of billions of dollars on data centers amid voracious demand for computing power to fuel all manner of AI applications.
Equity markets were also supported by the Federal Open Market Committee cutting the federal-funds rate by a quarter of a percentage point on Wednesday and the de-escalation of trade tensions after President Donald Trump met with his Chinese counterpart Xi Jinping on Thursday.
This week, Wall Street will get an update on the labor market when ADP releases its National Employment Report on Wednesday. Also on Wednesday, the Supreme Court will hear oral arguments in cases challenging the legality of the Trump administration's tariffs.
Third-quarter earnings season has proven to be strong so far, with almost two-thirds of S&P 500 companies having reported. More than 80% have beaten earnings-per-share estimates, while nearly 80% have surpassed sales expectations
Palantir Technologies and Vertex Pharmaceuticals will release earnings on Monday, followed by Advanced Micro Devices and Pfizer on Tuesday. McDonald's, Qualcomm, and Robinhood Markets will announce their results on Wednesday, while Airbnb and ConocoPhillips follow suit on Thursday. Constellation Energy, Duke Energy, and KKR round out the week on Friday.
Monday 11/3
Grab, Ares Management, BioNTech, Clorox, Coterra Energy, Diamondback Energy, Hologic, IAC, Idexx Laboratories, Loews, ON Semiconductor, Palantir Technologies, Pinnacle West Capital, Public Service Enterprise Group, SBA Communications, Simon Property Group, Vertex Pharmaceuticals, and Williams Cos. announce quarterly results.
The Institute for Supply Management releases its Manufacturing Purchasing Managers' Index for October. Consensus estimate is for a 49.4 reading, slightly higher than in September.
Tuesday 11/4
Advanced Micro Devices, AES, Aflac, American International Group, Amgen, Apollo Global Management, Archer-Daniels-Midland, Assurant, Astera Labs, Axon Enterprise, Ball Corp., Broadridge Financial Solutions, Corteva, Eversource Energy, Exelon, Ferrari, Gartner, Global Payments, Henry Schein, International Flavors & Fragrance, Jack Henry & Associates, Live Nation Entertainment, Marathon Petroleum, Marriott International, Martin Marietta Materials, Match Group, Molson Coors Beverage, Mosaic, Norwegian Cruise Line Holdings, Pfizer, Pinterest, Shopify, Spotify Technology, Stanley Black & Decker, Super Micro Computer, Skyworks Solutions, TPG, Thomson Reuters, Uber Technologies, Waters Corp., Yum! Brands, and Zoetis release earnings.
Wednesday 11/5
Albemarle, Allstate, APA, AppLovin, Arm Holdings, Atmos Energy, Bio-Techne, Bunge Global, Cameco, Cencora, CF Industries, Charles River Laboratories International, CRH, Devon Energy, DoorDash, Emerson Electric, Energy Transfer, Fair Isaac, Fidelity National Information Services, Fortinet, Humana, Iron Mountain, Johnson Controls International, McDonald's, McKesson, MetLife, Paycom Software, PPL, PTC, Qualcomm, Robinhood Markets, Sempra, Steris, Targa Resources, Texas Pacific Land, TKO Group Holdings, Toyota Motor, Trimble, and Zimmer Biomet Holdings report quarterly results.
ADP releases its National Employment for October. Economists forecast a 30,000 increase in private-sector employment, after a decline of 32,000 in September. Absent data from the federal government, the Federal Open Market Committee has to scour private and state-level reports for an update on the labor market.
The ISM releases its Services PMI for October. The consensus call is for a 50.9 reading, roughly one point more than in September.
The Supreme Court hears oral arguments for two cases in which small businesses sued the Trump administration, alleging illegal use of the International Emergency Economic Powers Act to implement tariffs.
Thursday 11/6
Airbnb, Air Products & Chemicals, Akamai Technologies, AstraZeneca, Becton Dickinson, Camden Property Trust, Consolidated Edison, ConocoPhillips, Cummins, Datadog, DuPont, EOG Resources, EPAM Systems, Evergy, Expedia Group, Insulet, Kenvue, Mettler-Toledo International, Microchip Technology, Moderna, Monster Beverage, News Corp, NRG Energy, Parker-Hannifin, Ralph Lauren, Rockwell Automation, Solventum, Tapestry, Take-Two Interactive Software, Trade Desk, Viatris, Vistra, Warner Bros. Discovery, Wynn Resorts, and Block announce earnings.
Friday 11/7
Brookfield Asset Management, Brookfield Infrastructure Partners, Constellation Energy, Duke Energy, Enbridge, Franklin Resources, and KKR report quarterly results.
The University of Michigan releases its Consumer Sentiment survey for November. Expectations are for a 53.2 reading, compared with 53.6 in October. Consumer sentiment remains in the doldrums despite record highs in the stock market. Consumer expectations for the year-ahead inflation were 4.6% in October, and 3.9% for longer-term inflation.