By Wallace Witkowski, MarketWatch

SAN FRANCISCO (MarketWatch)--Earnings from the energy and health care sectors will dominate investor attention as respective heavyweights report following a week where upside earnings surprises lifted the broader market out of a slump.

The broader market comes off a big week with the Dow Jones Industrial Average (DJI) finishing up 2.6%, the S&P 500 index (SPX) having its best gain of 2014 with a 4.1% advance, and the Nasdaq Composite Index (RIXF) closing up 5.3%.

Dow components reporting this week

 
Company/Ticker      Report date                                                                                                                               Estimated EPS / revenue   Market cap 
Merck & Co.         Oct. 27                                                                                                                                   88 cents / $10.64 billion $163.36 billion 
Pfizer Inc.         Oct. 28                                                                                                                                   55 cents / $12.27 billion $181.35 billion 
DuPont              Oct. 28                                                                                                                                   53 cents / $7.95 billion  $62.78 billion 
Visa Inc.           Oct. 29                                                                                                                                   $2.10 / $3.19 billion     $133.53 billion 
Exxon Mobil Corp.   Oct. 31                                                                                                                                   $1.72 / $103.46 billion   $401.35 billion 
Chevron Corp.       Oct. 31                                                                                                                                   $2.54 / $52.97 billion    $220.64 billion 
 
 
 
 
 
 
 

Out of the six Dow components reporting, two are the biggest names in the energy sector and two represent heavyweights in heathcare. The week also sees more than 150 companies on S&P 500 reporting.

The two sectors represent polar opposites of the broader market this year: Healthcare is the best performer on the S&P 500 while energy has fallen to a loss on the year following a plunge in oil prices.

Energy earnings expectations slip on slumping oil prices

Energy earnings are expected to take a big third-quarter hit. At the beginning of the third quarter, August crude oil futures were trading at about $105 a barrel on the New York Mercantile Exchange. By the end of September, the most actively traded futures contract settled just above $91 a barrel, a 13% decline over the quarter.

Exxon Mobil is expected to report quarterly earnings of $1.72 a share, down from the $1.91 a share consensus expected at the start of the third quarter, according to FactSet data.

Similarly, Chevron is estimated to report third-quarter earnings of $2.54 a share, down from the $2.79 a share consensus that started that quarter. ConocoPhillips earnings are expected at $1.19 a share, down from a forecast $1.48 a share at the beginning of the quarter. Earnings for the sector are expected to decline 1% from a year ago.

The outlook for the sector isn't looking much better. Since the end of September, analysts have slashed energy earnings estimates for the fourth quarter, according to John Butters, senior earnings analyst at FactSet.

"As a result of these cuts to estimates, the Energy sector has recorded the largest decrease in expected earnings growth (to -4.7% from 7.0%) of all 10 sectors during this time," Butters said in a recent note.

Health care looks healthiest on the revenue side

Health care earnings are much better positioned this season. The sector is expected to see earnings growth of 12.4% in the third quarter and the best revenue growth of any other sector at 10.2%. In addition to Pfizer and Merck, it's a big week for biotechs Gilead Sciences, Amgen, and AbbVie, along with drug distributor McKesson and pharmacy-benefits manager Express Scripts.

As far as earnings growth for the sector, Gilead is expected to do the heavy lifting. Excluding the biotech's contribution, earnings growth for the health-care sector is estimated at 5.7%, according to FactSet's Butters.

Social media to have its say

The social media side of tech will have some big shoes to fill following earnings beats from Microsoft, Yahoo, and Apple this past week. Earnings reports from Twitter and Facebook will start off and the week.

Notable earnings reports this week

 
Company/Ticker      Report date                                                                                                                               Estimated EPS / revenue   Market cap 
Merck & Co.         Oct. 27                                                                                                                                   88 cents / $10.64 billion $163.36 billion 
Pfizer Inc.         Oct. 28                                                                                                                                   55 cents / $12.27 billion $181.35 billion 
DuPont              Oct. 28                                                                                                                                   53 cents / $7.95 billion  $62.78 billion 
Visa Inc.           Oct. 29                                                                                                                                   $2.10 / $3.19 billion     $133.53 billion 
Exxon Mobil Corp.   Oct. 31                                                                                                                                   $1.72 / $103.46 billion   $401.35 billion 
Chevron Corp.       Oct. 31                                                                                                                                   $2.54 / $52.97 billion    $220.64 billion 
 
 
 
 
 
 
 
 

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