The busiest week of third-quarter earnings season ended on a sour note. The market could use a few victories in the days ahead, which will be filled with more quarterly reports and updates on the health of the U.S. labor market. Another big variable: the outcome of Tuesday’s midterm elections, which will determine which party controls the House and Senate for the next two years. There are six Club stocks reporting earnings this week, and the jobs data will also influence expectations for future Federal Reserve policy. 1. Our focus here is stocks, not politics. But the elections across the country cannot be ignored , given the implications for the AI buildout trade if anti-data-center politicians rack up big victories. If the opposite happens, we’re likely to get a relief rally. In addition, President Donald Trump has said he’s waiting for the midterms to pass before ordering any new military action against Iran. If tensions are ratcheted up, that could spell bad news for oil prices, bond yields and future inflation — all potential headwinds for equities. Now, let’s get into what to expect from our portfolio companies and the jobs report. 2. Earnings: Apple will kick things off Monday after the close. This will be John Ternus’ first call as CEO, and he’s got his work cut out for him. The iPhone 18 Pro, Duo, and new Mac and home-device offerings give him plenty to work with. However, the stakes have been raised after Intel’s disastrous guidance for the current quarter was attributed to inflation-induced demand pressure in the PC market. Therefore, it’s the outlook Apple management provides at the end of the prepared remarks that will determine the stock reaction. We’re seeking answers to two big questions: Is demand for Apple’s products holding up better than the overall market thanks to a more affluent customer base? And how are gross margins looking? Apple has already implemented a series of price hikes on some of its hardware offerings due to rising memory costs, but margins can still be squeezed if the full increase wasn’t passed through. Management has to balance price hikes against the risk of demand destruction. Given the hardware memory situation, Apple’s high-margin Services business becomes all the more important. As a revenue stream entirely separate from memory costs, we’re interested in how much it can protect Apple’s overall profitability. Revenue: $ 113.4 billion EPS: $1.99 The question for Eaton is less about big-picture demand for its data center products, as results from Alphabet’s Google Cloud, Microsoft , and Amazon indicate the AI buildout is very much intact. Rather, it’s about how much progress Eaton has made in increasing manufacturing capacity, and if that’s led to further margin expansion. Pricing is another tailwind for Eaton, which reports Tuesday morning. We’re also interested in hearing about the progress made in integrating Boyd Thermal , which added liquid cooling to Eaton’s portfolio of power distribution units, switchgear, transformers, and other electrical equipment. Any updates on the planned divestiture of its mobility unit , which has been a drag on overall growth, are also helpful. Aerospace missed the mark last quarter, though it was up roughly 13% year over year, so we’ll be looking for improvement there. Overall, keep in mind that order growth is a key metric beyond reported sales. The reason? Orders reflect current demand, while sales represent past demand that’s been fulfilled — and investors are always looking toward the future. Revenue: $8.5 billion EPS: $3.54 DuPont , which specializes in materials used across a ton of end markets, including healthcare, water safety, construction, automotive, and aerospace, also reports Tuesday. Generally, organic sales growth is a key metric to watch. By end market, healthcare, which includes medical packaging, and water are the ones that excite us most over the long term. The Middle East is an important region for DuPont’s water business because countries there rely on advanced purification technologies to provide clean drinking water. It has faced some disruption due to the war in Iran (delayed shipments, project timeline shifts), though it’s all been manageable, and strength in the industrial water and semiconductor markets has provided an offset. Will that continue to be the case? Another war-related note: the market will be sensitive to how oil and gas inflation is affecting EBITDA margins (the full-year guide includes a 30-basis-point headwind). Lastly, can growth in non-residential construction minimize the impact of sluggish home construction in the U.S.? Revenue: $1.84 billion EPS: $1.87 Qnity Electronics reports Wednesday, and shares of the semiconductor materials supplier are down almost 20% since the company’s blowout earnings report in early August . Is the decline warranted, or will it prove to be a massive opportunity? Considering Intel’s guidance on the worsening PC slowdown, commentary on current-quarter demand will carry more weight than the September-quarter results. Can possible weakness in consumer electronics be fully offset by strength in AI chip manufacturing? Intel also flagged a shortage of advanced organic substrates that is limiting chip output. We’ll be listening for whether those bottlenecks are disrupting customers’ production plans and, by extension, orders for Qnity’s materials. Any early commentary on 2027 will be notable, as investors consider the potential for upside amid the AI buildout. Revenue: $1.49 billion EPS: $1.20 This is a market interested in defensive names, and Cardinal Health , which reports Thursday morning, fits the bill. But with shares less than 2% from their all-time highs, there’s little room for error. Investors have come to love Cardinal for its ability to deliver double-digit earnings growth, so exceeding EPS estimates is the place to start. On Oct. 1 , Cardinal said it renewed its distribution deal with CVS Health through 2032. Expect analysts to seek color on the economics of that agreement, which lifted an overhang on shares. Other topics to watch for: How are shipments of generic medicines trending? This is a key profit driver for Cardinal, reported within its Pharmaceutical and Specialty Solutions segment. We’ll also look for updates on the performance of higher-margin growth areas such as nuclear pharmaceuticals, direct-to-home delivery, and its OptiFreight healthcare logistics platform. These businesses are reported within Cardinal’s Other segment. Finally, the impact of high oil prices on its Global Medical Products and Distribution segment — which delivers medical, surgical, and laboratory products to hospitals and ambulatory surgery centers — is worth monitoring. Revenue: $66.6 billion EPS: $2.94 Kimberly-Clark joins Cardinal before the bell Thursday, though the maker of Huggies and Scotts toilet paper already preannounced better-than-feared results on Oct. 15, taking away some of the intrigue. The release of preliminary financial results was likely tied to Kimberly-Clark’s efforts to close its blockbuster acquisition of Tylenol maker Kenvue , which is supposed to close by year-end. Could we hear something this coming week? For its part, Kenvue reported better-than-expected sales Friday. Away from Kenvue, we hope to get updates on how Kimberly-Clark is managing cost inflation (including on logistics); sales trends in China now that regulators have pushed back on social-media claims that its diapers contained a toxic chemical; and the outlook for its professional business in the wake of customers working down existing inventory at a faster rate than they placed new orders. Revenue: $4.13 billion EPS: $1.64 3. Jobs, jobs, jobs: This week’s slate of economic data is all about the labor market. The main event is Friday’s October nonfarm payrolls report, with economists expecting 75,000 payroll additions and the unemployment rate remaining at 4.2% . The jobs report arrives with inflation running well above the Fed’s 2% target, potentially forcing central bankers to raise rates in the coming months after making no change at last week’s policy meeting. For this reason, it’s crucial that unemployment remain at bay so that the Fed has the breathing room it needs to curtail inflation. As of Friday, the CME FedWatch Tool puts the odds of a quarter-point hike at just under 75% at the December meeting. Leading up to Friday, we’ll get the September JOLTS (jobs openings and labor turnover survey) report on Tuesday and ADP’s October employment survey. The JOLTS report provides insight into labor market tightness by tracking job openings, hires, quits, layoffs/discharges, and other causes of separation. However, the data is a month old, and we already know the net number of jobs added to the economy in September, so it’s the least consequential of the three labor-market updates. The ADP data, on the other hand, is often used by investors to game the nonfarm payrolls report, though it only covers private-sector hiring. Other economic reports to keep an eye on include the Institute for Supply Management’s monthly manufacturing report, out Monday, and the Census Bureau’s factory orders report, out Tuesday, both of which provide insight into the state of manufacturing. The ISM’s look at services activity will be released Wednesday. Week ahead Monday, Nov. 2 ISM Manufacturing PMI at 10 a.m. ET Before the bell: Marriott International (MAR), Fox Corporation (FOX), Entergy (ETR), Estée Lauder Companies (EL) After the bell: Apple (AAPL) , Diamondback Energy (FANG), Equitable Holdings (EQH), Vertex Pharmaceuticals (VRTX), Williams Companies (WMB), Celanese (CE), Palantir (PLTR), Clorox (CLX), onsemi (ON) Tuesday, Nov. 3 — Midterm Election Day JOLTS report for September at 10 a.m. ET Factory orders at 10 a.m. ET Before the bell: DuPont (DD), Eaton (ETN), Marathon Petroleum (MPC), Archer-Daniels-Midland (ADM), Pfizer (PFE), Keurig Dr Pepper (KDP), Fiserv (FISV), Teva Pharmaceutical (TEVA), Shopify (SHOP), Yum China Holdings (YUMC), Ferrari (RACE), Yum Brands (YUM), Versant Media Group (VSNT), Apollo Global Management (APO), ADT (ADT) After the bell: Super Micro Computer (SMCI), Advanced Micro Devices (AMD), Amgen (AMGN), Coupang (CPNG), Booking Holdings (BKNG), Block (XYZ), Avis Budget Group (CAR), Arista Networks (ANET), Toast (TOST) Wednesday, Nov. 4 ADP private payrolls report at 8:15 a.m. ET ISM Services PMI at 10 a.m. ET Before the bell: Qnity (Q), CVS Health (CVS), Uber (UBER), Novo Nordisk (NVO), McDonald’s (MCD), Kraft Heinz (KHC), Emerson Electric (EMR), Stanley Black & Decker (SWK), Wayfair (W), Martin Marietta Materials (MLM), GlobalFoundries (GFS), SharkNinja (SN) After the bell: McKesson (MCK), MetLife (MET), Allstate (ALL), Qualcomm (QCOM), Expedia (EXPE), Goodyear Tire & Rubber (GT), DoorDash (DASH), Aflac (AFL), Motorola Solutions (MSI), Tenaris (TS), Coherent (COHR) Thursday, Nov. 5 Initial jobless claims at 8:30 a.m. ET Before the bell: Kimberly Clark (KMB), Cardinal Health (CAH), Cigna (CI), Sony (SONY), ConocoPhillips (COP), Cummins (CMI), Duke Energy (DUK), Southern Company (SO), Parker-Hannifin (PH), Becton Dickinson (BDX) After the bell: Live Nation Entertainment (LYV), EOG Resources (EOG), Devon Energy (DVN), Consolidated Edison (ED), Airbnb (ABNB), Compass (COMP), Monster Beverage (MNST), Lyft (LYFT), Mattel (MAT) Friday, Nov. 6 Nonfarm payrolls report at 8:30 a.m. ET Before the bell: Humana (HUM), Charter Communications (CHTR), Enbridge (ENB), Vistra (VST), Under Armour (UAA), Elanco Animal Health (ELAN) (Jim Cramer’s Charitable Trust is long AAPL, KMB, Q, ETN, DD, CAH. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
3 big things we’re watching in the stock market this week
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