Wall Street enters the new week with earnings season nearing its end.
Just 11 S&P 500 companies are scheduled to report results this week, including Disney (DIS) and Cisco (CSCO), while institutional investors will be poring over 13F filings due Friday, for clues on where the “smart money” positioned at the end of the third quarter.
“With official data limited by the shutdown, investors will be parsing those filings for hints about hedge fund and institutional strategies during the recent market highs,” said Kathleen Brooks, research director at XTB.
Risk appetite picked up to start the week after eight Democrats joined Republicans to advance a procedural vote to end the record-breaking 40-day government shutdown. “There are still more hoops to jump through before the 1.4 million federal workers get their jobs back,” Brooks said. “But this first step towards ending the lockdown has received a warm reception from financial markets.”
The Senate-passed deal would only extend government funding until the end of January, potentially setting up another standoff early next year. “It’s a win for the moderates today,” Brooks said, “but there could be another fight at the start of next year.”
Prediction market Kalshi now sees the most likely duration of the shutdown exceeding 50 days, adding to investor unease ahead of the Thanksgiving travel season.
Thin calendar
Market activity may be muted with much of the economic calendar on hold. “If you were looking to take a week off desk before the holiday period, this wouldn’t be a bad one to disappear for, given the dearth of events on the docket,” said Michael Brown, senior research strategist at Pepperstone.
“I’m not sure I remember a week ahead calendar with less on it than we have this week,” Brown added. “The US government shutdown clearly isn’t helping, with the October CPI, PPI, and retail sales reports all postponed — and some doubt as to whether we’ll actually ever see that data at all.”
In the absence of fresh macro indicators, investors will keep a close eye on AI-linked names after the Nasdaq posted its worst weekly performance since April, pressured by declines in Nvidia and other semiconductor stocks. “There are plenty of reasons for markets to be jittery,” Brooks said, pointing to weakness in momentum trades and earnings revisions.
Earnings and sector outlook
Despite last week’s turbulence, corporate America’s third-quarter results remain strong. “US corporate earnings are growing at their fastest pace in four years, defying fears that trade tariffs would decimate profits,” Brooks noted, citing median earnings growth of 11% in Q3, up from 6% in Q2.
All but one S&P 500 sector posted positive earnings growth, while every sector recorded sales gains. The Dow Jones Transportation Index, seen as a leading indicator of global growth, climbed 2% last week, supported by recovering airline shares and optimism that travel disruptions could be short-lived.
This week’s earnings lineup includes CoreWeave, Occidental, and Plug Power on Monday; Oklo and Nexgel on Tuesday; Cisco, Flutter Entertainment, and Rumble on Wednesday; Disney, Applied Materials, and Newsmax on Thursday; and Quantum, AmpliTech, and Data Storage rounding out the week on Friday.
Seasonal hopes versus shutdown risks
Historically, November has been a strong month for equities, but 2025’s volatility has made for an unusual setup. “After a strong run in October, which is usually a weak month for equities, you get the feeling that 2025 is shaping up to be a unique year for risk assets,” Brooks said.
With sentiment still fragile, traders are watching whether optimism over the potential end of the shutdown can sustain a recovery through November, or whether uncertainty over government funding, delayed economic data, and renewed inflation worries will cap gains.
As Brooks put it: “Hope remains that stocks can turn around earlier losses and post a strong monthly gain for November. But for now, markets are still trading more on headlines than hard data.”