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3 Earnings Reports to Watch Next Week

Vince Martin

Editor’s note: InvestorPlace’s Earnings to Watch is updated weekly. Please check back next week for our latest earnings calendar picks.

The peak of earnings season arrives next week. The question is whether even strong earnings reports will matter. Clearly, investors are nervous at the moment – for reasons that go well beyond the earnings calendar.

Whether it’s higher interest ratestrade war fears or just valuation concerns, the market has seen several major selloffs of late — including on Thursday.

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Broad market indices don’t look that bad – the S&P 500 Index is down only about 6% from its highs – but smaller stocks and several key sectors have seen much steeper declines. At this point, earnings reports are going to have to turn the tide – starting next week.

And there are some big earnings reports on the way. Several tech titans will try and reverse the slide in that key sector. A leading semiconductor company will try and calm the jitters in the chip space. The earnings calendar can change the narrative around the market. The concern at the moment, however, is that it’s the only thing that can do so.

Earnings Calendar Reports: Microsoft


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Microsoft (MSFT)

Earnings Calendar Report Date: Wednesday, Oct. 24, after market close

On Thursday, I detailed why fiscal first-quarter results from Microsoft (NASDAQ:MSFT) would be key for the company. With Microsoft stock trading near its highest multiples in over a decade, the company needs a strong quarter from Azure and its cloud business more broadly to keep its stock afloat. But as one of several major tech companies on the earnings calendar next week, Microsoft’s numbers also will matter to the market.

Considering its size and presence in multiple markets, any weakness will raise demand concerns across the tech space. And it could only add to the pressure on tech stocks that’s been seen over the past couple of weeks.

Microsoft earnings need to be strong – not just for MSFT to rebound, but for a number of other stocks to do the same.

Earnings Calendar Reports: Intel


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Intel (INTC)

Earnings Calendar Report Date: Thursday, Oct. 25, after market close

Chip stocks have been among the biggest victims of the recent selloff – but the concerns around Intel (NASDAQ:INTC) go beyond simple sector worries. INTC stock sold off after the Q2 report in July. And as I wrote at the time, the report highlighted risks in terms of both competition and execution.

With INTC stock near an eight-month low, Q3 earnings need to answer at least some of the many questions facing the company. Truthfully, I’m not much more optimistic than I was back in July. Both Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA) are taking market share in key categories. Semiconductor cycle concerns are only adding to the pressure.

These are problems that likely don’t get fixed in a single quarter. If Intel disappoints, there’s a path to new lows – and a likelihood that it could bring down other chip stocks with it.

Earnings Calendar Reports: Amazon


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Amazon.com (AMZN)

Earnings Calendar Report Date: Thursday, Oct. 25, after market close

Thursday afternoon is a big one for tech titans on the earnings calendar. Amazon.com (NASDAQ:AMZN) joins Intel and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) in reporting third-quarter earnings.

Alphabet’s earnings are important but Amazon’s likely will be more instructive. One of the notable aspects of the recent selloff is that investors are starting to pay attention to valuation in a way they weren’t just a few months ago. We’ve seen that with Netflix (NASDAQ:NFLX), who posted a blowout quarter only for investors to essentially shrug.  After two sessions, NFLX stock is basically flat to where it traded ahead of earnings.

If Amazon meets the same fate – and it hardly seems unlikely – that could be a sign that the market has changed. It’s already looking the market is moving away from cyclicals and tech to value stocks and defensives. A big report from Amazon that’s met with indifference could signal that shift will last a lot longer than just a couple of weeks.

As of this writing, Vince Martin did not hold a position in any of the aforementioned securities.

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