Capital One, Meta Earnings Loom as Investors Watch Spending; Apple Duo Preorders Begin

For Capital One, portfolio director Jeff Marks said the bank and credit card provider's spending has weighed on profits. 'Investors typically don't want to hear about investment years. They want profit,' Jeff said. He said that is part of the reason the stock has struggled this year, pointing to Capital One's more than 16% year-to-date decline.

Meta, also a portfolio holding, has seen its Muse personal AI agent become a hit, Jeff said. 'Now, I think the question is how much investment comes with that.' The potential for increased spending was one reason the club trimmed its Meta position last month to protect profits. The stock surged in the two weeks after the Muse launch on Sept. 8 but has cooled off recently. With Meta expected to deploy large amounts of cash toward expanding Muse, investors will be closely watching its capital expenditure plans.

The earnings preview came as stocks were mixed Friday, with the rotation out of AI names and into defensives still ongoing. Sharp week-to-date losses in the tech-heavy Nasdaq and weekly gains in the Dow told the story. Jeff highlighted the financial sector as an industry benefiting from the market shift after a rough start earlier in the week following earnings. Club banks Wells Fargo, Bank of New York and Goldman Sachs were all positive for the week. Consumer staples names such as club holding Kimberly-Clark extended gains after one of their best days in years Thursday. The club published commentary on the things going right for the consumer products giant and a major catalyst ahead.

Apple shares were modestly higher Friday, tracking to eclipse Wednesday's record-high close, as preorders kicked off for the company's highly anticipated iPhone Duo. Apple's first foldable iPhone will hit stores Oct. 23. Early indications suggest demand is already strong. Jeff pointed to delivery estimates pushing into early 2027 as an encouraging signal. 'That is a very good sign, especially because these phones come with a very high price point,' Jeff said, referencing the Duo's starting price of $1,999. Jim Cramer has been bullish on the Duo since getting a first look at the device at Apple's flagship store in New York in September. During Thursday's October Monthly Meeting, Jim said he experimented with the two-sided seamless phone and was blown away, adding that he plans to get the Duo as a second phone.

Jim Cramer's Charitable Trust is long BNY, WFC, GS, META, and APPL, CNBC said.

Editor's Summary

Capital One and Meta are set to report earnings next week, with investors focused on investment spending and profitability. Apple's iPhone Duo preorders began Friday, while markets continued rotating from AI names into defensives. CNBC's Investing Club said it trimmed Meta last month to protect profits and highlighted financials and consumer staples as recent winners.