The big first week of earnings season has arrived, with several major financial and consumer stocks set to report their latest results. Nearly 40 S&P 500 companies are scheduled to publish their third-quarter calendar results, including Netflix and Procter & Gamble. Major banks like Goldman Sachs and Bank of America are also on the roof. Earnings season got off to a strong start last week, with JPMorgan Chase, Wells Fargo, and BlackRock beating expectations. Overall, FactSet data showed that 73% of companies that reported earnings beat analyst estimates. On Tuesday, Bank of America is scheduled to report earnings before the bell, followed by a call at 8:30 a.m. ET. Q4: Bank of America jumped after saying a rebound in net interest income is coming. This quarter: Analysts expect a double-digit decline in earnings compared to the same period a year earlier, according to LSEG. What CNBC banking correspondent Heo Soon is monitoring: “Bank of America fumbled the interest rate story as it was rising, leading to huge investment losses. How will they react as interest rates fall?” What history shows: Bank of America shares rose on 10 of the last 12 earnings days, according to Bespoke Investment Group. The company also beat earnings expectations 79% of the time. Goldman Sachs is scheduled to report earnings in the pre-market. A call with management is also scheduled for 9:30 a.m. Q4: Goldman beat estimates, thanks to strong fixed-income trading revenue. This quarter: Analysts polled by LSEG expect the bank to report strong year-over-year earnings growth. What CNBC banking correspondent Hugh Soon is watching: “Goldman Sachs should have tailwinds as long as the monetary easing story is intact; rival JPMorgan has made strong gains in investment banking and trading, and these firms should gain strength if Interest rates fell.” What history shows: Goldman beats expectations 86% of the time, according to Bespoke. Shares also rose on four of the past five earnings days. United Airlines is scheduled to report earnings after the close. A conference call is scheduled for the next day at 10:30 a.m. Final quarter: United Airlines reports a 23% jump in profits but issues disappointing guidance for the third quarter. This quarter: LSEG data shows analysts believe United's profits fell more than 10% year-over-year. WHAT YOU'RE WATCHING Leslie Josephs, CNBC airline correspondent: “United Airlines executives are expected to be upbeat about travel demand and revenues, especially as the industry has reduced capacity in an oversupplied U.S. market. They will, of course, face questions about the election US presidential election impact on bookings after rival Delta expects revenue to decline 1 percentage point due to lower demand before and after the vote expected: An update on talks with United's flight attendants union, one of the last large labor groups remaining to reach an agreement with the carrier in the United States. This cycle. What history shows: United's earnings beat estimates 71% of the time, detailed data shows. However, shares fell on average 0.6% on Wednesdays when Morgan Stanley is scheduled to report its earnings before the bell Call at 8:30 a.m. Q4: Morgan Stanley beats expectations, thanks to strong revenue from trading and investment banking This quarter: The bank is expected to report strong earnings and revenue growth year-over-year, according to LSEG. What Hugh Soon, CNBC banking correspondent, is watching: “Morgan Stanley has several advantages right now: High market valuations and low interest rates are helping the company's wealth managers and relieving pressure on cash holdings.” What history shows: Morgan Stanley's earnings beat expectations 78% of the time, according to Bespoke. The stock also posted an average gain of 0.8% on earnings days. Thursday, Netflix is scheduled to report its earnings after the bell, with a call scheduled for 4:45 p.m. Final quarter: Netflix's earnings beat expectations, thanks to a 34% increase in ad-supported memberships. This quarter: Analysts see the streaming giant's earnings growing more than 30% compared to the same period a year earlier, according to LSEG data. What to watch: Netflix is trending higher on this report, gaining about 6% over the past month. However, Deutsche Bank analyst Brian Kraft believes there is little margin for error. “We remain at a Hold rating given what we believe is valuation, at 31x 2025E EPS, which leaves little opportunity for further multiple expansion and is likely to contract as growth slows heading into 2025 due to diminishing net temporary addition benefit from paid share,” he wrote. Kraft last week. What history shows: Netflix tends to struggle on earnings days, averaging a slight decline, according to Bespoke. Shares also fell on two of the last three earnings days, including a 9.1% decline in April. Friday Procter & Gamble is scheduled to report premarket earnings, followed by a call at 8:30 a.m. Q4: P&G reported weaker-than-expected sales due to declining demand from China. This quarter: Soap and toothpaste maker Ivory Crest is expected to report single-digit earnings growth for its fiscal first quarter. What to watch: Procter has struggled lately, losing more than 1% in the past month. Barclays doesn't see the company's results moving the needle much. Analyst Lauren Lieberman downgraded the stock on September 30 to equal weight from overweight. “Unfortunately, while growth in the US, its home market, has held up well with continued value and volume gains, we expect these other markets to continue to weigh on overall growth over the next 12 months,” she wrote. What History Shows: Detailed data shows that Procter & Gamble beat earnings expectations 85% of the time. Shares also rose on five of the past six earnings days.
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The first big week of the season includes reports from Netflix and the major banks
