Written by Norman Isaac Mwambazi

What to watch this week: Tesla, AT&T, Netflix, Chipotle, and others

As we draw closer to the end of the earnings season, hundreds of companies have already re companies are going …

As we draw closer to the end of the earnings season, hundreds of companies have already re companies are going to release their earnings reports for their third quarter of the 2021 fiscal year (Q3 FY2021), to join the hundreds of the S&P 500 Index components that have released theirs this month so far.

Last week, we had U.S. Big Banks JPMorgan Chase (ticker: JPM), Morgan Stanley (ticker: MS), Goldman Sachs (ticker: GS), Wells Fargo (ticker: WFC), among many other companies releasing their Q3 FY2021 earnings reports, and most of them exceeded Wall Street expectations. This week, investors will have their eyes and ears stuck on notable large-cap companies in sectors like energy, telecom, technology, airlines, consumer staples, and health care, 72 of them to be exact, as they release their highly anticipated reports.


Today, Monday, October 18, 2021, American grocery company Albertsons Companies, Inc. (ticker: ACI) and financial services and bank holding company State Street Corporation (ticker: STT) will release their Q3 FY2021 earnings reports. State Street has had a good year, with its stock gaining as high as 50.37% year to date. The company has a market capitalization of $35.38 billion, and Wall Street expects its earnings in this quarter to be better than what the company posted in Q2 FY2021 in August 2021. 

Another event expected sometime today is the U.S. industrial production data that will be released by the Federal Reserve Bank for the month of September. Economists expect this data to rise 0.20%, lower than the rise of the same in August (0.40%). Economists also expect capacity utilization for September to have been at 76.5%, slightly higher than August’s 76.4%.

Tuesday 10/19

Proctor & Gamble Co. (ticker: PG)

Procter & Gamble, an American multinational consumer goods corporation with renowned brands such as Ariel, Duracell, Gillette, Pampers, and Oral-B among others is releasing its Q3 FY2021 report on Tuesday, October 19, 2021, after market close. The company has had a moderate year, with its stock gaining only 3.99% so far this year. PG has a market capitalization of $348.05 billion and its stock is trading at $143.21 each.

Netflix Inc. (ticker: NFLX)

A household name in video streaming services, Netflix has been one of the big beneficiaries of the stay-home directives during the COVID-19 pandemic. The company has seen its stock grow 21.31% year to date, with its stock currently trading at $634.29 for each share. With a market capitalization of $280.73 billion a host of new releases lined up, Wall Street expects the streaming service to post even stronger figures for Q3 FY2021. It is worth noting that this is the quarter within which the fifth season of the highly anticipated Money Heist was released.

Other companies that are releasing their Q3 FY2021 earnings reports are pharmaceutical giant Johnson & Johnson (ticker: JNJ), consumer financial services company Synchrony Financial (ticker: SYF), drilling oil and gas well company Halliburton (ticker: HAL), stock brokerage firm Interactive Brokers Group (ticker: IBKR). Others include Kansas City Southern, ManpowerGroup, Canadian National Railway, and Dover.

The U.S. Census Bureau will also release the residential construction data report for September and economists expect a slight increase in housing starts and are looking at a seasonally adjusted annual rate of 1.623 million compared with 1.615 million reported in August.


Tesla Inc. (ticker: TSLA)

Although the chip shortage has affected a lot of automakers, Tesla has defied these and has continued to make record-breaking deliveries of its electric vehicles (EVs). Although the company’s China wing is facing competition from local producers and a crackdown on tech companies by the Chinese regulators, it has continued to meet delivery targets, as well as shipping to Europe.

Even with this success in this quarter, CEO Elon Musk has not shied away from mentioning that the company would have done so much better were it not for the computer chip shortage. Tesla’s stock has gained 19.34% year to date in what has been a year of ups and downs. The company has a market capitalization of $862.16 billion and with EV deliveries in record numbers, Wall Street expects the company to post better figures than Q2 FY2021 come Wednesday. The company’s stock is currently trading at $870.78 a share.

Other companies holding their earnings calls on this day are telecommunication and mass media giant Verizon Communications Inc. (ticker: VZ), tech giant International Business Machines Corp. (ticker: IBM), Abbott Laboratories, Nasdaq, Lam Research, Biogen, Canadian Pacific Railway, and NextEra Energy among others.

On the economic data side, the Fed will release its beige book about current economic conditions across its 12 districts.


AT&T Inc. (ticker: T)

The world’s largest telecommunications company and the largest provider of mobile telephone services in the U.S. will release its Q3 FY2021 earnings report this week on Thursday, October 21, 2021, after market close. The company has had a below-par year, with its stock dropping more than 13% year to date. AT%T has a market cap of $180.89 billion, and analysts have mixed feelings about its stock, and most of them will issue a “Sell” or equivalent rating if it keeps plummeting. The company’s shares are currently trading at $25.33 a share.

Other companies investors should look out for this Thursday are Freeport-McMoRan, Genuine Parts, Dow, Southwest Airlines, Valero Energy, Quest Diagnostics, American Airlines Group, Barclays, Blackstone, and Snap-on, and Chipotle Mexican Grill among others.

The National Association of Realtors will report existing-home sales for the month of September that economists project its seasonally adjusted annual rate of 6.10 million homes compared with 5.88 million homes sold in August.

The Federal Reserve Bank of Philadelphia will round up the day with the release of its diffusion index that economists expect to fall to 24 this month. The diffusion index is a measure of overall manufacturing activity and it was reading 30.7 in September.


Not so much activity from S&P 500 Index’s components on Friday this week, but a handful of them like American Express, Schlumberger, Cleveland-Cliffs, Seagate Technology Holdings, Whirlpool, Honeywell, Celanese, HCA Healthcare, and VF Corp. will host investor conference calls.