WinCap Financial

Wednesday is the main event, with Tesla and Alphabet reporting after the close. These two companies will give investors a fresh read on AI spending, digital advertising, EV demand, and corporate capital spending. Options markets are pricing in roughly a 7% move for both stocks after earnings, so expect volatility.

The AI trade is evolving. Instead of chasing the companies building AI, we’re focusing on the companies monetizing it. Names like Intuit combine AI-driven growth with recurring revenue, strong cash flow, and far more reasonable valuations.

On the economic front, watch Tuesday’s ADP employment report and Thursday’s weekly jobless claims for clues on the labor market ahead of next month’s jobs report. Then on Friday, we’ll get the latest Manufacturing and Services PMIs, along with new home sales

One wildcard to watch this week is geopolitics. Any new developments in Iran have the potential to overshadow earnings and economic data, particularly if they impact oil prices or broader market sentiment.