The First Slice for Monday, October 18, 2021

The Chicago Sky came from behind to beat the Phoenix Mercury 80-74 and win the best-of-five finals series 3-1 to claim the franchise’s first championship on Sunday.

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Stocks appear to have shaken off the often spooky trading pattern of October for now, and whether that continues could depend on earnings in the week ahead.

Dozens of companies are reporting, from Netflix and Tesla to Intel, Procter & Gamble and American Express. Railroads, airlines, health care, tech, financial firms, energy and consumer products companies are all reporting in the first big wave of reports.

Stocks were higher in the past week, with the Nasdaq leading the charge with a 2.2% gain. Cyclical sectors, like materials, industrials and consumer discretionary were outperformers, and tech held its own with a 2.6% gain. Real estate investment trusts were also among the best sectors up nearly 3.5%.

Major banks, like CitigroupGoldman Sachs and Bank of America, have reported quarterly results with solid beats in the past week. The financial sector, which includes insurance and credit-card firms besides banks, is at this point expected to see a profit gain of 30.7%, according to I/B/E/S data from Refinitiv. Overall the profits of S&P 500 companies are expected to gain 32%, based on estimates and actual third-quarter reports.

Besides earnings, there are a few economic reports to watch, including existing home sales and the Philadelphia Fed manufacturing survey on Thursday. On Friday, Markit manufacturing and services PMI data is released. The Federal Reserve’s beige book on the economy is issued Wednesday afternoon.

The first bitcoin futures exchange-traded fund could begin to trade next week, when ProShares Bitcoin Strategy ETF is expected to debut. The Securities and Exchange Commission could still hold up the ETF if it objects to the filing before midnight Monday, but that is not seen as likely, a source told CNBC.

Bitcoin rose above $60,000 for the first time in six months Friday, as investors bet the ProShares and other cryptocurrency-based ETFs would begin to trade soon.

Week ahead calendar

Monday

Earnings: Albertsons, State Street, Zions Bancorp, FNB, Steel Dynamics

8:30 a.m. Business leaders survey

9:15 a.m. Industrial production

10:00 a.m. NAHB survey

4:00 p.m. TIC data

Tuesday

Earnings: Netflix, Johnson & Johnson, Procter & Gamble, Travelers, United Airlines, Synchrony Financial, Halliburton, Manpower Group, Kansas City Southern, Bank of NY Mellon, Fifth Third, Intuitive Surgical

8:30 a.m. Housing starts

11:00 a.m. San Francisco Fed President Mary Daly

1:00 p.m. Atlanta Fed President Raphael Bostic

2:00 p.m. Atlanta Fed’s Bostic

Wednesday

Earnings: TeslaVerizonIBM, Lam Research, CSX, Baker Hughes, Abbott Labs, Nasdaq, Biogen, Knight-Swift Transportation, Canadian Pacific Railway, Northern Trust, Tenet Healthcare, PPG Industries, SLM

12:00 p.m. Atlanta Fed’s Bostic

12:00 p.m. Chicago Fed President Charles Evans

1:45 p.m. St. Louis Fed President James Bullard

2:00 p.m. Beige book

8:35 p.m. San Francisco Fed’s Daly

Thursday

Earnings: AT&TIntel, Blackstone, Union Pacific, Chipotle Mexican Grill, SnapWhirlpool, Celanese, Southwest Airlines, AutoNation, American Airlines, KeyCorp, Crocs, Marsh and McLennan, Ally Financial, Freeport-McMoRan, Nucor, Quest Diagnostics, Mattel, Genuine Parts, Alaska Air, Tractor Supply

8:30 a.m. Initial jobless claims

8:30 a.m. Philadelphia Fed manufacturing

10:00 a.m. Existing home sales

Friday

Earnings: HoneywellAmerican Express, Schlumberger, Regions Financial, Roper, VF Corp, HCA Holdings, Seagate Technology

9:45 a.m. Manufacturing PMI

9:45 a.m. Services PMI

10:00 a.m. San Francisco Fed’s Daly

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