Week ahead: Goldilocks for stocks, The Fed, FANG + US Election

This narrative be likely be mapped out this week for three key reasons...Firstly, the Fed setting interest rates on Wednesday (with a hold expected), secondly, we have company earnings rising more expected which is also supportive of equites. This week results will be out from Microsoft $Microsoft(MSFT.US)$ Apple $Apple(AAPL.US)$ , Meta $Meta Platforms(META.US)$ , Amazon $Amazon(AMZN.US)$ and Alphabet $Alphabet-C(GOOG.US)$ , as well as Boeing $Boeing(BA.US)$ , Exxon $Exxon Mobil(XOM.US)$ and Merck on plus. Thirdly, it's a US Presidential election year, which is historically a positive one of stocks. Regardless of which party has won, throughout history the S&P500 has been positive 80% of the time.

So far this earnings seasons, better than expected earnings results have come through from the US heavyweights including the Dow Jones 30 names such as Intel $Intel(INTC.US)$ Nike $Nike(NKE.US)$ Goldman Sachs $Goldman Sachs(GS.US)$ and Netflix $Netflix(NFLX.US)$ . And I believe this narrative will continue... because broad earnings were downgraded by most Wall Street analysts ahead of earnings season. And that set the bar low, to allow for companies to beats expectations. Markets, like good surprises.

Netflix $Netflix(NFLX.US)$ shares surged 18% last week after it not only reported stronger than expected results, seeing its best quarter of growth since pandemic. But also, the stream giant successful executed in adding a new revenue stream to its business with live streaming and ad-revenue gaining traction.