Third-quarter earnings season is entering its busiest stretch, with Capital One reporting Tuesday night and Meta after Wednesday's close. After last week's bank earnings were met with selling even when profits beat expectations, the backdrop remains tough: rising bond yields, two September inflation reports hotter than expected, Middle East tensions, and doubts about the durability of AI spending. According to LSEG, Capital One is expected to earn $5.50 per share on $16.26 billion in revenue, with focus on net interest margin, charge-offs, expenses and the Discover acquisition; its shares trade below 9 times forward earnings. Meta is expected to report EPS of $5.94 on $63.32 billion in revenue, and investors will watch how management justifies large AI infrastructure spending alongside its Muse AI assistant.
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