US equities pushed higher on Monday as markets prepare for a big week of mega-cap tech earnings. Energy shares outperformed on the day as WTI briefly traded above $85 before retreating. Tesla set the tone for the session, rising by more than 12.5% following the announcement of a deal with the rental car company Hertz. Hertz announced it would purchase 100,000 Tesla cars, another tailwind for the company following last week’s blowout earnings report. Shares of Tesla traded over the $1,000 barrier, taking the market capitalization of the company above $1 trillion.

Facebook reported mixed results for the third quarter, with revenue figures and forward guidance both falling short of analyst estimates. Despite disappointing revenue data, bottom-line earnings did beat the consensus estimate. Monthly active users also came in lower than expected, but despite the mixed results, Facebook shares traded marginally higher in the after-hours session.

FACEBOOK EARNINGS SUMMARY:

• Revenue: $29.01 billion vs. $29.45 billion est.
• Earnings per Share (EPS): $3.22 vs. $3.17 est.
• Monthly Active Users: 2.91 billion vs. 2.93 billion est.

FACEBOOK DAILY CHART

(Click on image to enlarge)

Chart created with TradingView

Market participants certainly have an action-packed week ahead, with Microsoft, Apple, Amazon, and Alphabet all set to report earnings this week following Facebook. What could be a “make or break” week for equity markets comes before next week’s FOMC policy meeting as near-term event risk remains elevated. With inflation on the mind of many, both the Federal Reserve and market participants may look to corporate guidance for any clues as to the nature of current price pressures, and whether they truly are just “transitory”.