Wall Street Week Ahead: Palantir, Disney, AMD, Eli Lilly Lead Earnings
Wall Street week ahead features key earnings from Palantir, Disney, AMD, Eli Lilly amid strong earnings growth but weak jobs data concerns.
Shai.Gal
Shai Gal is a highly experienced financial journalist with expertise in the tech industry and dividend growth stocks. He has a strong track record of producing insightful content that helps investors make informed decisions. Shai is skilled in conducting in-depth research and analysis to identify trends and opportunities in the market.
Aug 03 2025
Earnings Season Delivers Outstanding Performance
The second quarter earnings season has been remarkably strong, with earnings growth now estimated at 9.8% – a significant jump from the 5.8% forecast at the beginning of July. More than half of S&P 500 companies have already reported, and an impressive 81% have beaten analyst expectations, well above the historical average of 76%.
This exceptional performance has been largely driven by technology companies, particularly those investing heavily in artificial intelligence infrastructure. The strength of these earnings provides crucial support for market stability, even as other economic indicators raise concerns.
Employment Raises Red Flags
The week's trading will be influenced by Friday's disappointing jobs report, which showed only 114,000 jobs added in July – well below expectations. The unemployment rate also ticked up to 4.3%, marking the weakest employment data since the beginning of the year.
This labor market softening has reignited concerns about potential economic slowdown, creating a challenging backdrop for equity markets despite the strong corporate earnings.
Key Earnings Reports This Week
The week ahead features a lighter earnings schedule compared to recent weeks, but includes several high-profile companies that could move markets. Monday kicks off with ON Semiconductor and Tyson Foods reporting before the bell, followed by military data analytics company Palantir Technologies after market close.
Tuesday brings a heavier lineup with Eaton Corporation expected to report revenues of $6.9 billion and earnings per share of $2.92. The company has strengthened recently due to AI infrastructure and data center investments. Caterpillar and Pfizer will also report before market open. After the close, semiconductor giant Advanced Micro Devices (AMD) will be closely watched as NVIDIA key competitor, alongside Snap, Rivian, and Amgen.
Wednesday spotlight falls on The Walt Disney Company, with expected revenues of $23.73 billion and EPS of $1.48. Investors will focus on the performance of Disney's experiences division (theme parks and cruises) and streaming services. McDonald's, Shopify, and Uber will also report before market open, while Airbnb, DraftKings, and cybersecurity provider Fortinet report after hours.
Thursday features the week's most anticipated report from Eli Lilly, expecting revenues of $14.71 billion and EPS of $5.57. The pharmaceutical giant will be under scrutiny regarding its GLP-1 weight loss drug market performance, especially following Novo Nordisk's disappointing results. ConocoPhillips, Warner Bros. Discovery, and Peloton will also report before the bell, with Block (Jack Dorsey's payments company), Pinterest, and Take-Two Interactive closing out the week after market hours.
Trump Tariffs Return to Focus
Trade policy concerns are resurfacing as new Trump tariffs on Canada took effect last Friday, with additional tariffs on countries like India and Switzerland expected to be implemented Thursday. These trade measures could impact international commerce and equity market sentiment.
Art Hogan, Chief Market Strategist at B. Riley Wealth, notes: "The current earnings season has been broadly better than expected. There's no question that technology companies, especially those operating in artificial intelligence, are the primary source of market support."
Despite positive earnings data, analysts warn of potential volatility, particularly during the historically turbulent August and September months. Market pullbacks may be viewed as buying opportunities, especially among leading technology stocks.
Earlier concerns about AI demand following the emergence of Chinese AI startup DeepSeek appear to have been exaggerated. Strong results from Microsoft and Meta Platforms have reassured investors about the sustainability of AI investments.
Wirsh Kember, macro analyst at Hive, explains: "Concerns about artificial intelligence demand appear overblown the massive investments in the sector are already producing tangible results."
The five largest companies, Alphabet, Microsoft, NVIDIA, Meta Platforms, and Amazon together represent about a quarter of the S&P 500's weight, making their strong performance significantly influential on overall market direction.
Market Outlook
While some economic sectors show weakness, the dominance of large technology companies in major indices means their continued strong performance can offset broader economic concerns. The combination of impressive earnings results and ongoing AI investment momentum provides a solid foundation for market stability.
As earnings season progresses, the market's ability to maintain its upward trajectory will largely depend on whether corporate America can continue delivering results that justify current valuations amid a potentially slowing economy.
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Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.
