What to Expect in the Week Ahead (JPM, DAL, MS, DPZ)

Moomoo Breakfast US wrote a column · Oct 9, 2022 20:17

What to Expect in the Week Ahead (JPM, DAL, MS, DPZ)

Third-quarter earnings season begins this week with several big banks reporting. Investors and economists will also get the latest read on U.S. inflation on Thursday.

$JPMorgan(JPM.US)$, $Wells Fargo & Co(WFC.US)$, $Morgan Stanley(MS.US)$, and $Citigroup(C.US)$ all release results on Friday morning, alongside $PepsiCo(PEP.US)$ reports on Wednesday, followed by $Delta Air Lines(DAL.US)$, $Fastenal(FAST.US)$, $Domino's Pizza(DPZ.US)$, and $Walgreens Boots Alliance(WBA.US)$ on Thursday.

The Bureau of Labor Statistics will report the consumer price index for September on Thursday morning. Economists expect the headline CPI to be up 8.1% year over year. The producer price index for September will be out on Wednesday.

Economists will also be watching the release of minutes from the Federal Open Market Committee's September meeting on Wednesday afternoon. Other data out this week includes the National Federation of Independent Business' Small Business Optimism Index on Tuesday, plus the Census Bureau's retail sales for September and the University of Michigan's Consumer Sentiment Survey for October, both on Friday.

Monday 10/10

Fixed-income markets are closed in observance of Columbus Day and Indigenous Peoples' Day. The New York Stock Exchange and Nasdaq keep regular trading hours.

Tuesday 10/11

The National Federation of Independent Business releases its Small Business Optimism Index for September.

Wednesday 10/12

$PepsiCo(PEP.US)$ releases third-quarter fiscal-2022 results.

The Federal Open Market Committee releases the minutes from its late-September monetary-policy meeting. The FOMC at that meeting raised the federal-funds rates by three-quarters of a percentage point, for a third consecutive time, to 3%-3.25%.

The Bureau of Labor Statistics releases the producer price index for September. Economists forecast that the PPI will jump 8.4% year over year, after an 8.7% increase in August. The core PPI, which excludes volatile food and energy prices, is seen rising 7.2%, compared with 7.3% previously. The PPI spiked a record 11.7% in March and has since steadily, albeit slowly, declined.

Thursday 10/13

$Blackrock(BLK.US)$, $Delta Air Lines(DAL.US)$, $Domino's Pizza(DPZ.US)$, $Fastenal(FAST.US)$, and $Walgreens Boots Alliance(WBA.US)$ hold conference calls to discuss earnings.

The BLS releases the consumer price index for September. Consensus estimates are for a year-over-year increase of 8.1% for the CPI. This compares with gains of 8.3%, in August. The S&P 500 rallied nearly 6% this past Monday and Tuesday on the hopes—once again—of a Fed pivot, and a lower-than-expected CPI would be cheered by both Main Street and Wall Street.

Friday 10/14

The big banks unofficially kick off a crucial third-quarter earnings season. $Citigroup(C.US)$, $JPMorgan(JPM.US)$, $Morgan Stanley(MS.US)$, and $Wells Fargo & Co(WFC.US)$ all report quarterly results before the market open.

$First Republic Bank(FRC.US)$, $PNC Financial Services(PNC.US)$, $U.S. Bancorp(USB.US)$, and $UnitedHealth(UNH.US)$ report quarterly results.

The University of Michigan releases its Consumer Sentiment Survey for October. Consumer expectations for inflation in one and five years were 4.7% and 2.7%, respectively, in September. Those readings are each expected to decrease by 0.1 percentage point.

The Census Bureau reports spending data for September. Economists forecast that retail sales will increase 0.2% month over month, after gaining 0.3% in August. Excluding autos, sales are expected to be flat. Consumer spending has proven resilient despite higher inflation, aided by a strong job market and excess savings.

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