Pfizer, McDonald’s Q3 Earnings to Set Early Market Tone; Alphabet, AMD Follow Post-Close

U.S. Stock Market Outlook: Earnings-Driven Moves Expected in Tuesday’s Session

U.S. markets are gearing up for key earnings updates today from major players like Ford, VF Corp, McDonald’s, Pfizer, Alphabet, and AMD. With overnight movements already setting the tone, traders are bracing for potential volatility as the week progresses.

Overnight Earnings Movements: Ford Falls, VF Corp Soars

Ford Motor shares declined approximately 6% in after-hours trading on Monday following its cautious full-year guidance. Facing pressures from a fierce electric vehicle (EV) price war, Ford now expects to close the year at the low end of its $10 billion to $12 billion earnings range. CEO Jim Farley cited a surge in EV competition and compliance demands as significant headwinds, with Ford’s EV segment reporting a $3.7 billion loss so far this year. High inventory levels and competition from General Motors further underscore Ford’s challenges.

In contrast, VF Corp, which owns brands like Vans and The North Face, jumped 23% post-earnings. CEO Bracken Darrell’s turnaround strategy appears effective, with VF Corp returning to profit after two quarterly losses. Notably, revenue in China grew 9% year-over-year, highlighting strong international demand. Analysts are optimistic about VF Corp’s trajectory, with its efficient inventory management and targeted product positioning setting it up well for upcoming quarters.

Pre-Market Anticipation: McDonald’s and Pfizer

Traders are closely watching McDonald’s and Pfizer’s pre-market earnings, as both companies face unique pressures. McDonald’s is handling fallout from an E. coli outbreak linked to its Quarter Pounder, which temporarily led to menu adjustments. Analysts project Q3 earnings of $3.20 per share and revenue of $6.82 billion, with modest U.S. sales growth expected. Health updates could further influence sentiment on McDonald’s shares, which have recently underperformed.

Pfizer, expected to report earnings per share of $0.62 for Q3, is likely to show marked improvement from a year-ago loss. Cost-saving initiatives and growth in non-COVID medications are key drivers. Although shares have lagged year-to-date, Pfizer’s cost efficiency and resilience may support a favorable report.

Post-Market Focus: Alphabet and AMD in the Spotlight

Alphabet and AMD are likely to be Tuesday’s post-market highlights, with both companies expected to report strong growth. Alphabet is projected to report $1.84 per share in earnings on $86 billion in revenue, supported by strength in digital advertising and cloud services. Investors will be watching for any updates on Alphabet’s AI initiatives, as competition in this space heats up.

AMD, also primed for positive results, is expected to report a 16% year-over-year revenue increase to $6.71 billion, driven by record data center revenues. Demand for its AI chips, particularly the Instinct, EPYC, and Ryzen processors, remains robust. Although AMD recently held back on raising its AI guidance, investor sentiment is strong, with 80% of analysts rating the stock a “buy.”

Market Outlook: Mixed Open with Earnings Catalysts Ahead

A mixed open is likely for U.S. markets as traders process earnings reports throughout the day. Key performances from Ford, McDonald’s, Pfizer, Alphabet, and AMD will be crucial for setting market direction.

While solid tech earnings could create a bullish post-market tilt, the challenges facing automakers and consumer staples may lend bearish undertones, supporting a cautious stance among traders as this busy earnings week continues.