Earnings week kicks off with big banks; ASML, TSMC follow

Earnings season begins in typical fashion on Tuesday with a slate of big bank reports. Later in the week, ASML and Taiwan Semiconductor are due, offering another significant gauge for the tech narrative.

The core query is simple: will the numbers and forward guidance provide a reason for investors to drive stocks upward?

Tuesday, October 13 sees a busy start with bank earnings leading the way.

• JPMorgan Chase (JPM)

• Goldman Sachs (GS)

• Citigroup (C)

• Wells Fargo (WFC)

• Johnson & Johnson (JNJ)

• UnitedHealth Group (UNH)

• Domino’s Pizza (DPZ)

• Albertsons (ACI).

In the banking sector, attention should be on lending profitability, deposit costs, trading income, and reserves for potential loan losses. The remarks about consumer and corporate health may be as crucial as the reported earnings figures.

UnitedHealth gives insights into medical expenses, while Domino's and Albertsons offer a further view of consumer behavior.

Wednesday, October 14: additional financial firms and ASML report.

Scheduled before the opening bell are:

• Bank of America (BAC)

• Morgan Stanley (MS)

• BlackRock (BLK)

• State Street (STT)

• ASML (ASML)

• Progressive (PGR)

ASML's release is critical for monitoring semiconductor equipment orders and the spending outlook for chip manufacturers. The firm has confirmed it will report on Wednesday.

Thursday, October 15 shifts the focus to TSMC in the tech space.

Reports due before the U.S. open include:

• Taiwan Semiconductor Manufacturing (TSM)

• Charles Schwab (SCHW)

• BNY (BNY)

• PNC Financial (PNC)

• U.S. Bancorp (USB)

• Prologis (PLD).

Following the market close:

• Alcoa (AA)

• Interactive Brokers (IBKR)

• J.B. Hunt Transport Services (JBHT).

TSMC's earnings call is set for 2:00 a.m. Eastern time on Thursday. The emphasis will be on demand for AI chips, profitability, capital expenditure, and revenue guidance.

Friday, October 16: regional banks complete the week's reports.

Earnings due before the open are:

• Citizens Financial Group (CFG)

• M&T Bank (MTB)

• Regions Financial (RF)

• Truist Financial (TFC)

• Travelers (TRV).

Traders should observe the market's reaction.

A positive earnings surprise may trigger buying, but forward guidance can alter the narrative rapidly.

Will the initial price move persist? Can buyers push through resistance and maintain gains? Or does the advance falter, offering sellers another opportunity?

Earnings supply the catalyst. Market action reveals which side gains control.