Breakfast News: Earnings Season Begins

Breakfast News: Earnings Season Begins

1. Popular Stocks Set to Drop Q3 Results

In a busy earnings week, Stock Advisor recommendation ASML Holding (ASML 4.20%) will report Wednesday. It comes as the company is committing $1.5 billion to European AI start-up Mistral AI, and follows top- and bottom-line beats in Q2. Watch for full-year guidance in a geopolitically challenged year.

• Currently ranked 8th on Dividend Investor for its ability to offer outsized dividend growth: We'll have an update from Prologis (PLD 1.07%) Wednesday, after Q2 came in ahead of expectations despite industrial real estate uncertainty. There's a 3.6% dividend yield forecast. Progressive (PGR -0.69%) – which commands about 16% of the $307 billion auto insurance market – reports the same day, after posting an earnings beat for Q2.
• AI-led demand driving 60% of Q2 revenue: Taiwan Semi (TSM 6.59%) releases latest figures Thursday. Demand from customers Nvidia (NVDA 3.34%) and Advanced Micro Devices (AMD 3.79%) helped push Q2 earnings up 67% year over year.

2. Futures Rise After Tough Friday

The stock market looks set to bounce back after Friday's pounding. The S&P 500 lost 2.4% last week with Nasdaq stocks down 3.6% – following President Trump's shock announcement of more potential tariffs against China. S&P 500 futures rose 1.5% this morning, with Nasdaq futures gaining 2%.

• "China's position on the trade war is consistent: we do not want it, but we are not afraid of it": China backed up its latest controls on rare earth exports Sunday, saying they're in response to escalating U.S. restrictions. Trump has now softened his stance, saying "Don't worry about China, it will all be fine!"
• Car makers struggling for rare earth supplies: General Motors (GM 1.17%), meanwhile, has less to fear from Chinese rare earth magnet supplies drying up than other auto makers, reports The Wall Street Journal, after the company invested in U.S. rare earth magnet production in 2021.

3. Bank Earnings in Focus

Third-quarter bank earnings arrive this week, with the latest from JPMorgan (JPM 2.52%) due Tuesday. On Friday, CEO Jamie Dimon put the chance of a stock market crash at 30% – perhaps within six months or two years. Updates from Wells Fargo (WFC 1.71%), Goldman Sachs (GS 2.59%), and Citigroup (C 2.03%) are due the same day.

• Superscore of 55 on our Moneyball database: Bank of America (BAC 1.07%) posts earnings Wednesday, after hiking its dividend 8% as a result of Q2 earnings. Morgan Stanley (MS 1.82%) reports the same day, after profit jumped 17% in Q2.
• Forecast dividend yield of 4.6%: Thursday brings the latest from Hidden Gems rec U.S. Bancorp (USB 1.26%), following a 14% rise in Q2 earnings per share. BNY Mellon (BK 1.46%) also reports Thursday.

4. Your Take

Which of the following Rule Breakers picks, all down 25% or more since being recommended in the past 2 years or so, has the best chance of recovering and beating the market over the next 3-5 years, and why: Airbnb (ABNB 0.67%), The Trade Desk (TTD 1.24%), or Progyny (PGNY -1.00%)? Debate with friends and family, or become a member to hear what your fellow Fools are saying.