Wall Street Earnings Season and U.S. Inflation: What Investors Can Expect This Week

A new earnings season kicks off on Wall Street this week: 26 S&P 500 companies will report quarterly results, with most coming from the financial sector, according to Barron’s. On Tuesday, Citigroup, JPMorgan Chase, Goldman Sachs, and Wells Fargo will report; Bank of America, BlackRock, and Morgan Stanley will follow a day later. Outside the financial sector, ASML and TSMC, as well as Johnson & Johnson and UnitedHealth, will present their quarterly results.

Banking reports, along with new economic statistics, will give investors insight into the state of corporate earnings and the outlook for interest rates, Reuters notes. The key macroeconomic release will be September U.S. inflation data—the Consumer Price Index (CPI): Yahoo Finance calls it a key factor in the Fed’s decision at its October meeting. However, a rate hike as early as October seems unlikely, while a 0.25 percentage point increase in December is already fully priced in, notes The Wall Street Journal.

In Europe, data on inflation, industrial production, and eurozone foreign trade will be released. In Asia, statistics on China’s inflation and foreign trade will be released. The sell-off in the bond market will remain a key topic: France continues to be under particular scrutiny from investors due to its budget problems, according to the WSJ.

On Monday, October 12, the U.S. bond market will be closed in observance of Columbus Day. The stock markets will operate as usual.

On Tuesday, October 13, the National Association of Realtors will release data on existing-home sales for September. Against the backdrop of high mortgage rates, the figure remains at its lowest level since the 2008–2009 financial crisis, Barron’s notes.

The earnings season on Wall Street will traditionally be kicked off by U.S. banks: Citigroup, Goldman Sachs, JPMorgan Chase, and Wells Fargo. In addition, Domino’s Pizza, Johnson & Johnson, and UnitedHealth Group will report their quarterly results.

On Wednesday, October 14, the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) will release the Consumer Price Index for September. The consensus forecast calls for an acceleration in annual inflation from 3.4% to 3.6% and in core inflation from 2.4% to 2.5%, according to Barron’s.

These statistics will serve as one of the key indicators ahead of the Fed’s October meeting. According to ING economist James Knightley, only an “exceptionally strong CPI report” could shift expectations that rates will remain unchanged in October, the WSJ reports.

The Federal Reserve will release the "Beige Book" — a report on the state of the U.S. economy based on information from the 12 regional Federal Reserve Banks.

China is set to release its September inflation and foreign trade data. The figures will show whether exports remain a pillar of support for the world’s second-largest economy amid rising food and energy prices, according to the WSJ. “Exports are likely to continue to be supported by strong shipments of chips and automobiles,” the newspaper quotes Bank of America economists as saying.

ASML, Bank of America, BlackRock, and Morgan Stanley will report their quarterly results.

On Thursday, October 15, the U.S. Census Bureau will release retail sales data for September. Economists, on average, forecast a 0.3% increase from the previous month, following a 1.1% jump in August.

On the same day, the U.S. will release its Producer Price Index. The consensus forecast calls for a 5.3% year-over-year increase in the PPI and a 4.4% rise in the core index, compared with 5.4% and 4.6%, respectively, in August. The report will show how much price pressure is intensifying at the producer level following the recent sharp rise in energy prices, explains the WSJ.

Eurostat will release data on industrial production in the eurozone for August.

TSMC and Alcoa will report their quarterly results.

On Friday, October 16, the eurozone will release final inflation data for September and foreign trade statistics.

Travelers and Truist Financial will report their quarterly results.

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