Paint maker RPM, potato supplier Lamb Weston and beer importer Constellation Brands report Tuesday, giving investors a read on consumer and industrial demand with the 10-year yield above 5.3%.
Tuesday brings a handful of earnings reports that offer a window into consumer spending and industrial demand just as borrowing costs reach levels unseen in more than two decades.
Before the opening bell
RPM International, the maker of Rust-Oleum paints and construction coatings, is expected to report earnings of $1.95 a share on revenue of about $2.22 billion. The stock heads into the report on a weak note after falling 3.92% to $95.30 on Monday, a day when the S&P 500 rose 0.66%. That 4.6 percentage-point gap sharpens the focus on demand from construction and home improvement customers, the same rate-sensitive end markets weighing on homebuilders.
Lamb Weston, a leading supplier of frozen french fries to restaurant chains, is expected to post earnings of about 59 cents a share on revenue of $1.65 billion. Its shares rose 2.25% to $44.58 on Monday. Restaurant traffic and pricing power at quick-service chains are the key variables for the company.
Architectural glass maker Apogee Enterprises and food safety company Neogen also report, with expected revenue of about $363 million and $208 million respectively.
After the close
Constellation Brands, the U.S. importer of Modelo and Corona beer, headlines the evening. Analysts expect earnings of $3.55 a share on revenue of about $2.54 billion. The stock closed Monday at $113.31, up 0.39%.
Constellation's results will be read closely for signs of how beer drinkers are spending and for any commentary on freight costs. U.S. diesel topped $6 a gallon in September, and moving heavy product by truck is a meaningful expense for a beer importer.
Penguin Solutions, which supplies memory and computing systems for artificial intelligence workloads, is expected to earn 77 cents a share on revenue of about $521 million.
The backdrop
None of these companies is large enough to move the indexes on its own, but together they test the same question: whether demand is holding up in sectors exposed to housing, restaurants and discretionary spending while 10-year Treasury yields sit near 5.3%. Monday's record in the Nasdaq came almost entirely from technology leaders. Results that show resilience in the rest of the economy would help broaden a rally that remains narrow.