# Three stock market tests this week

> Capital One, Meta and a wave of earnings reports will show whether companies can justify their spending as inflation stays hot.
- Title: Three stock market tests this week · CNBC | Shortify
- Summary: Capital One, Meta and a wave of earnings reports will show whether companies can justify their spending as inflation stays hot. Major earnings from Capital…
- Keywords: earnings season, capital one, meta platforms, stock market, inflation, federal reserve, ai spending, business, finance, Three, stock, market
- Source: CNBC — https://cnbc.com/investingclub/2026/10/18/here-are-the-3-big-things-were-watching-in-the-stock-market-this-week.html
- Author: Zev Fima,Kevin Stankiewicz
- Published: 2026-10-18T15:24:37+00:00
- Read time: 2 min
- Topics: earnings season, capital one, meta platforms, stock market, inflation, federal reserve, ai spending, business, finance
## Banks set a tough tone
Top and bottom-line beats from Goldman Sachs were met with selling. State Street and Bank of America got hit even harder despite reporting results.
## The backdrop got worse
Rising bond yields, two hotter-than-expected inflation reports, Middle East tensions and questions about AI spending durability have made earnings season harder.
## Capital One reports Tuesday
The credit-card issuer reports Tuesday night. CEO Richard Fairbank's commentary on spending across income groups will be especially notable given hot inflation readings.
## What Capital One must show
Net interest income fell short last quarter. The company needs sequential expansion this time. Better net charge-offs and a loan reserve release would build confidence.
## Capital One's valuation case
At less than nine times forward earnings, Capital One shares look too cheap to give up on despite heavy business investment holding back recent earnings.
## Capital One's expected numbers
As of Friday, Capital One is expected to report earnings of five dollars fifty per share on revenue of sixteen point two six billion dollars.
## Meta's Muse moment
Meta reports after Wednesday's close. CEO Mark Zuckerberg is riding high from the viral launch of its agentic AI platform assistant, Muse.
## What Meta must explain
Management needs to share actual numbers on Muse adoption, daily active users and user type breakdown. But aggressive AI infrastructure spending will counterbalance the optimism.
## Meta's spending justification
How well Zuckerberg and CFO Susan Li explain and justify AI spending will impact the stock market reaction. Will they point to current monetization or future revenue potential?
## Meta's expected numbers
Meta is expected to report earnings per share of five dollars ninety four on revenue of sixty three point three two billion dollars, according to LSEG.
## AI buildout signals
Lam Research and Texas Instruments report Wednesday night. Lam Research makes equipment chipmakers need for semiconductors. Texas Instruments' power management chips for data centers matter most.
## Storage and defense watch
Western Digital reports Thursday. RTX, GE Aerospace and Northrop Grumman report Tuesday. Airlines including United, Alaska Air, Southwest and American report throughout the week.
## Consumer spending reads
General Motors, Tesla, Netflix, Spotify, Procter and Gamble and American Express all report. Airlines will signal consumer health amid rising gas prices and inflation.
## Key takeaway

Major earnings from Capital One, Meta and dozens of other companies this week will test whether the market's frosty reception to bank results continues or improves.