What will drive the markets this week?
Last week ended lower for wall street stocks as the September US jobs report got investors concerned the Fed would continue with aggressive hikes on interest rates. Even though job growth was slower than the previous month, the employment rate was also lower than expected.
In Europe, the STOXX index posted weekly gains of nearly 1%, as expectations that major central banks may tame their aggressive policy approach had briefly boosted equities in the first few sessions of the week.
Corporate earnings season kicks off this week with several big banks and financial firms, including JPMorgan Chase, Morgan Stanley, BlackRock, and Citigroup, set to report earnings. Other major firms such as PepsiCo, TSMC, Delta Air Lines, and UnitedHealth are also scheduled to release results. Key reports on consumer and producer inflation, retail sales, and consumer confidence will become available this week. Meeting minutes from the FOMC’s latest policy meeting, held September 20-21, will be released Wednesday.
The week could also be a big one for cryptocurrency markets, as regulatory changes may be on the horizon. The G20’s Financial Stability Board (FSB) is expected to unveil plans to regulate the crypto and decentralized finance (DeFi) industries at the coming G20 meeting in Washington on Wednesday and Thursday.
Events expected to influence financial markets in the week
Tuesday, October 11
- Pinnacle Financial Partners (PNFP) reports earnings
- NFIB Business Optimism Index (Sep)
- IBD/TIPP Economic Optimism Index (Oct)
- Consumer Inflation Expectations (Sep)
Wednesday, October 12
- PepsiCo (PEP), Infosys Ltd. (INFY), and Wipro Ltd. (WIT) report earnings
- Producer Price Index (PPI) Inflation (Sep)
- FOMC Meeting Minutes (Sep. 20-21 Meeting)
Thursday, October 13
- TSMC (TSM), Wells Fargo (WFC), BlackRock (BLK), Progressive Corp. (PGR), Walgreens Boots Alliance (WBA), Fastenal Co. (FAST), Delta Air Lines (DAL), Domino’s Pizza (DPZ)
- Consumer Price Index (CPI) Inflation (Sep)
Friday, October 14
- UnitedHealth Group (UNH), JPMorgan Chase (JPM), Morgan Stanley (MS), Citigroup (C), PNC Financial Services (PNC), U.S. Bancorp (USB), and First Republic Bank (FRC) report earnings
- Retail Sales (Sep)
- Import & Export Prices (Sep)
- Business Inventories (Aug)
- Michigan Consumer Sentiment Index - Preliminary Reading (Oct)