Level 1 - Absolute Beginner
This is a big week for money news. The Fed makes a choice about interest rates on Wednesday.
Three big tech companies will also share their numbers. Alphabet and Microsoft report on Wednesday evening. Amazon reports on Thursday.
Meta and Tesla told the world their numbers on October 21.
Oil costs a lot now, about 117 dollars a barrel. That makes many investors nervous.
- week
- Seven days.
- Fed
- The central bank of the United States.
- interest rate
- The price of borrowing money.
- company
- A business.
- report
- To share business numbers.
- investor
- A person who puts money into companies.
- nervous
- A little afraid or worried.
- oil
- A liquid used for fuel.
Level 2 - Elementary
Wall Street faces a packed calendar. The Federal Reserve announces its rate decision on Wednesday, October 28, and later that day Alphabet and Microsoft report results after the market closes. Amazon follows on Thursday, October 29.
Analysts expect Microsoft to earn about 4.71 dollars a share on revenue of around 90.6 billion dollars. For Alphabet the estimates are 3.03 dollars a share and about 127.9 billion dollars in revenue. Amazon is expected to show 1.96 dollars a share on roughly 202 billion dollars.
Meta and Tesla have already reported, on October 21. Apple is expected to report on November 2, but that date is an estimate.
Investors are also watching oil. Brent crude closed near 117 dollars on Friday, which raises the cost of fuel and can push interest rates higher.
- calendar
- A list of dates and events.
- results
- The final numbers of a business for a period.
- analyst
- An expert who studies companies and markets.
- estimate
- A careful guess.
- revenue
- Money a company earns from sales.
- share
- One small part of a company.
- closed
- Finished trading for the day at a price.
- cost
- The price you pay.
Level 3 - Intermediate
Markets enter a week that combines monetary policy, mega-cap earnings and an oil shock. The Federal Reserve announces its decision on Wednesday, October 28, and Alphabet and Microsoft publish quarterly results after the close the same day, with Amazon following on Thursday. Meta and Tesla reported on October 21.
Consensus estimates compiled by SentiSense put Microsoft at earnings of 4.71 dollars a share on revenue near 90.63 billion dollars, Alphabet at 3.03 dollars on 127.91 billion, and Amazon at 1.96 dollars on 202.16 billion. Investors will focus on cloud growth, after Google Cloud revenue rose 82 percent to 24.8 billion dollars in the previous quarter, and on how much these firms plan to spend on artificial intelligence.
The backdrop is unsettling. Brent crude finished the week near 117 dollars, about 17 percent above its level a month earlier, as attacks on shipping near Hormuz continue. Higher energy costs complicate the Fed's job because they lift inflation just when growth may be slowing.
Apple and Nvidia are not due this week; their dates in early and mid November are estimates the companies have not confirmed.
- monetary policy
- Central bank actions on interest rates and money supply.
- mega-cap
- Describing a company worth hundreds of billions.
- consensus
- The general agreement of analysts.
- cloud
- Computing services delivered over the internet.
- backdrop
- The background conditions.
- unsettling
- Causing worry.
- inflation
- A general rise in prices.
- confirmed
- Officially stated to be true.
Level 4 - Advanced
For investors, the coming days compress three forces into a single calendar: a Federal Reserve decision on Wednesday, October 28, quarterly results from Alphabet and Microsoft after the closing bell that evening, and Amazon's report on Thursday. Meta and Tesla have already delivered theirs, on October 21.
According to estimates compiled by SentiSense, Wall Street expects Microsoft to post earnings of 4.71 dollars a share on revenue near 90.63 billion dollars, Alphabet 3.03 dollars on 127.91 billion, and Amazon 1.96 dollars on 202.16 billion. The scrutiny will fall on whether cloud momentum, which saw Google Cloud revenue jump 82 percent to 24.8 billion dollars last quarter, can justify the enormous capital expenditure on artificial intelligence.
The macro backdrop is hostile. Brent crude settled near 117 dollars, roughly 17 percent higher than a month ago, as the campaign against shipping near the Strait of Hormuz persists. Elevated energy prices feed inflation and narrow the Fed's room to ease policy, which is why a hawkish tone on Wednesday could amplify any disappointment from the technology giants.
These figures are consensus estimates, not results, and the dates for Apple and Nvidia remain unconfirmed.
- compress
- Squeeze into a smaller space or time.
- scrutiny
- Close and careful examination.
- momentum
- Strength gained from continued growth.
- capital expenditure
- Money spent on long-term assets such as equipment.
- macro
- Relating to the whole economy.
- hostile
- Unfriendly or unfavourable.
- hawkish
- Favouring higher interest rates to fight inflation.
- amplify
- Make stronger.