The stock market on Wall Street continues to soar, with the S & P 500 reaching a record high on Friday. The positive momentum is fueled by strong quarterly results from major financial firms like Wells Fargo, indicating a healthy U.S. economy. As the third-quarter earnings season kicks into high gear, attention is focused on upcoming reports from more U.S. banks, health-care companies, and tech players. Jim Cramer emphasizes the importance of focusing on company earnings amid economic reports, especially with inflation trending down. The market saw gains across various sectors in the past week, with tech, industrials, and financials leading the way.
Exiting Procter & Gamble was the only trade made in the past week, as the defensive stock didn’t seem suitable for the current market environment. The strong earnings reports from Wells Fargo and JPMorgan reinforced the positive outlook for the financial sector, contributing to the overall market rally. In the upcoming week, influential companies such as UnitedHealth, Goldman Sachs, ASML, and Taiwan Semiconductor Manufacturing Co. are set to report. Morgan Stanley and Abbott Laboratories are scheduled to announce their results, with a focus on Morgan Stanley’s investment banking recovery and Abbott’s legal issues regarding its infant formula.
Abbott Labs’ legal battle over its infant formula seems more manageable following support from U.S. health agencies, potentially boosting the stock. Strong fundamentals and successful business segments are key factors driving Abbott’s growth, despite previous weak points in nutrition and established pharmaceuticals. The week ahead includes key reports from companies like Charles Schwab, Walgreens Boots Alliance, UnitedHealth, Citigroup, and Bank of America. While Morgan Stanley’s ongoing recovery in investment banking is expected to be a highlight, Abbott Labs’ progress in resolving legal issues will also be closely watched.
The upcoming economic calendar includes reports on jobless claims, retail sales, and industrial production, providing further insights into the state of the economy. Notable companies such as Netflix and American Express are set to release earnings reports, along with updates on housing starts and building permits. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade, with a waiting period before execution to ensure transparency and compliance with the club’s terms and conditions. Overall, the market remains optimistic as earnings season unfolds and key economic indicators continue to drive investor sentiment.
