Fed Minutes, PepsiCo and Delta Air Lines Earnings Reports: What Investors Can Expect This Week

The main event of the week will be the release of the minutes from the Fed’s September meeting. Weak labor market data has reduced the likelihood of another rate hike as early as the October meeting, so investors will be looking to the document for clues regarding the central bank’s next moves, according to The Wall Street Journal.

In Europe, a new batch of economic data will be released amid concerns over France’s budgetary and political issues, while in Asia, the market will be watching for signals from the Bank of Japan and the reopening of Chinese stock exchanges following “Golden Week.”

This week is relatively light on major market events: no major economic releases are expected, and among large companies, only PepsiCo and Delta Air Lines will report their financial results. The main wave of third-quarter earnings reports will begin next week, according to Reuters.

On Monday, October 5, the Institute for Supply Management will release the September Purchasing Managers' Index (PMI) for the U.S. services sector. The consensus forecast is 55 points, slightly below August's reading.

The final September PMI figures for the services sectors in France, Germany, and the eurozone will be released in Europe.

On Tuesday, October 6, the eurozone will release retail sales data for August, Germany will release industrial orders statistics, and France will release industrial production data. “Retail sales in the eurozone and industrial orders in Germany should show how the European economy is coping with higher energy costs,” the WSJ quotes analysts at Danske Bank as saying.

Bank of Japan Governor Kazuo Ueda will deliver a speech in which investors will be looking for clues regarding the timing of the next rate hike.

Amazon will lower prices for 48 hours as part of Prime Big Deal Days. U.S. online spending has been accelerating for four consecutive quarters—a trend that, according to Bernstein analysts, has “surprised” many investors. Amazon’s promotion will serve as another test of demand ahead of the holiday season, writes Investor’s Business Daily.

Constellation Brands, Lamb Weston Holdings, and RPM International will report their quarterly results.

On Wednesday, October 7, the Federal Open Market Committee will release the minutes of its September meeting, at which the Fed unanimously raised the federal funds rate by 0.25 percentage points—to a range of 3.75–4%. Following stronger-than-expected inflation data and weak labor market statistics, traders now estimate the probability of another rate hike at the meeting in late October at 20 percent—down from 65 percent a week earlier.

The WSJ notes that the market is currently pricing in at least three rate hikes over the next 12 months.

China will release its foreign exchange reserves data for September. The resumption of trading after the holidays could increase stock market volatility as investors rebalance their portfolios. According to UOB economists, data on domestic tourism during the holiday period is of particular interest, the publication notes.

Applied Digital and Levi Strauss will release their financial reports.

On Thursday, October 8, the European Central Bank will release the minutes of its September meeting, at which it raised interest rates.

PepsiCo will report its quarterly results.

On Friday, October 9, the University of Michigan will release the October U.S. Consumer Sentiment Index. According to Barron's, economists are forecasting an average reading of 47.7 points—0.5 points lower than the September figure.

Delta Air Lines will report its results for the previous quarter.

This article was AI-translated and verified by a human editor