Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Virus V. Earnings: How The Week Sets Up

By Boris SchlossbergMarket OverviewOct 26, 2020 06:29AM ET
Virus V. Earnings: How The Week Sets Up
By Boris Schlossberg   |  Oct 26, 2020 06:29AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Market Drivers For Oct. 26, 2020

  • Equities lower on lockdowns and stimulus fail
  • IFO come sin mixed
  • Nikkei -0.44% Dax -2.05%
  • UST 10Y 0.81%
  • Oil $38.78
  • Gold $1900/oz.
  • BTC/USD $1308.

Asia and the EU

  • EU IFO 95 vs. 96.5

North America Open

  • USD New Home Sales 8:30

A very distinct risk-off mood to the start of the week as investors woke up to grim news that COVID cases were rising to record highs in Europe and the US with France’s caseload expected to hit 100,000 infections per day sometime this week.

Adding to the sour mood was news that stimulus talks remained at an impasse over the weekend essentially eliminating any prospect of the bill’s passage before the election. Finally, disappointing earnings from SAP (NYSE:SAP) – on the bellwether stocks on the DAX – sent the share plunging by 20% which pushed DAX lower by 2%.

With COVID and stimulus failure factored into investor sentiment the unknown for the market this week will be earnings. This is a very busy week for earnings especially for tech-heavy NASDAQ which will see Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Facebook (NASDAQ:FB), and Google (NASDAQ:GOOGL) all report numbers with investors hoping that these “work-from-home” beneficiaries will surprise to the upside.

The FANGs have been the primary drivers of the rebound in stocks and their profit picture as well as forward guidance will be crucial to any further rally in the indices. If the high tech darlings fail to meet the expectations of investors the market could set up for a vicious downward slide as investors will face risk from COVID lockdowns, lack of fiscal stimulus, and peak growth in WFH stocks.

With markets generally sanguine up to now a miss on earnings expectations could be the key catalyst for a correction that some analysts have argued is long overdue. Still, the dominant theme, for now, remains risk on with benchmark 10-year yields at recent highs of 81 basis points, and if the FANGS can assuage investor concerns and beat their marks the rally could continue unabated despite all the risks present in the global economy.

Virus V. Earnings: How The Week Sets Up

Related Articles

Virus V. Earnings: How The Week Sets Up

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email