Finance Community News reported on October 28th (Editor Liu Rui) that on the eve of the US election on November 5th, the US stock market will experience a week of continuous high energy.

First, 5 of the 'Big Seven' will release heavyweight financial reports this week, followed by heavyweight economic data - the US PCE index and non-farm payroll report will both be released, which is expected to make the market experience an exciting and stimulating week.

The busiest earnings week for US stocks is approaching.

This week, the US will enter the busiest third-quarter earnings week: nearly a thousand US companies will release earnings this week, with about 170 companies in the S&P 500 Index planning to report earnings.

Among these, $Berkshire Hathaway-A (BRK.A.US)$Please use your Futubull account to access the feature.$Exxon Mobil (XOM.US)$Please use your Futubull account to access the feature.$Chevron (CVX.US)$ and $Eli Lilly and Co (LLY.US)$ Among the well-known giants, the most eye-catching ones must be the seven giants of tech stocks in the USA - these companies are not only the key driving force for the profit growth of the US stock market, but also have huge market capitalization, accounting for about 25% of the S&P 500 index.

This week, five of these seven tech giants will release earnings.

First to appear is $Alphabet-A (GOOGL.US)$ Will announce earnings after the close on Tuesday; followed by $Microsoft (MSFT.US)$ and $Meta Platforms (META.US)$ Will debut after the close on Wednesday; $Apple (AAPL.US)$ and $Amazon (AMZN.US)$ The financial report will be released after the market on Thursday.

Among the aforementioned five, the "Seven Giants" $Tesla (TSLA.US)$ has already announced financial results far better than expected last week, while $NVIDIA (NVDA.US)$ will wait until November 20th to release the financial report.

It is worth mentioning that, while continuing to outperform the US stock market, the average expected PE ratio of the 'Big Seven' stocks is currently 35 times, much higher than other companies in the S&P 500 Index. However, whether the earnings growth of these companies can match such high valuations still needs to be confirmed by this week's financial reports.

Bryant VanCronkhite, Senior Portfolio Manager at Allspring Global Investments, said: 'I believe some companies should have very high PE ratios, but if this 'taken for granted reason' is shaken, then these stocks have significant downside potential.'

Heavyweight data keeps coming.

In addition, two major super-heavyweight data releases are expected this week, which are expected to have a significant impact on the market.

One of them is the most favored inflation indicator by the Federal Reserve: the Personal Consumption Expenditures Price Index (PCE). This index will be released on Thursday to measure changes in prices of consumer goods and services.

Economists expect that the 'core' PCE index in September (excluding highly volatile categories such as food and energy) will reach an annual rate of 2.6%, lower than the previous value of 2.7%. If inflation cools significantly, it means that the Federal Reserve may not be eager to cut interest rates significantly.

In addition, the U.S. Department of Labor will release the U.S. non-farm payroll report for October on Friday, which is the most important economic report of the month. In September this year, the U.S. unemployment rate was 4.1%, with an increase of 0.254 million jobs, higher than expected, which is one of the reasons for the recent strength in the U.S. stock market.

In the latest report this Friday, whether the U.S. government will revise the data from last month will be closely watched.

In addition, regarding the non-farm payroll data for October, according to Bloomberg data, economists currently expect a net increase of 0.125 million jobs, with the unemployment rate remaining at 4.1%—but the actual data is likely to show significant deviations.

Michael Reid, from the Capital Markets Company of Royal Bank of Canada, wrote in the report: "After two hurricanes, a strike, and rotating layoffs, we expect the October employment report to be quite noisy."

Nanette Abuhoff Jacobson, Global Investment Strategist at Hartford Funds, also stated that after the U.S. experienced two major storms, this non-farm payroll report may be "chaotic," but wage data will be worth watching.

"If we see wage increases, that's worrisome," Jacobson said. "The bond market has already felt the possibility of stronger economic growth than expected, a potential resurgence of inflation, and the possibility that the Fed may not loosen monetary policy as expected."

According to the Fed Watch Tool of the CME Group, the market currently expects a high probability of 92.8% that the Federal Reserve will cut interest rates at the November meeting.

Editor/Somer