What will drive the markets this week?
On Friday, the U.S. stock market experienced a robust surge, primarily driven by exceptional performances within the technology sector. Ultimately, the day concluded with stocks closing at significantly elevated levels. This upswing came in the wake of the September jobs report, which disclosed a broad increase in U.S. hiring, coupled with a slowdown in wage growth.
European stocks, bond prices, and the euro faced declines on Friday due to the release of the U.S. non-farm payrolls, which surpassed expectations. This development reinforced market sentiment that high-interest rates are likely to persist for an extended duration.
Over the weekend, major stock markets in the Gulf region encountered a substantial drop in response to growing concerns regarding war between the Palestinian group Hamas and Israel. Saudi Arabia’s benchmark index experienced a steep decline of 1.6%, marking its most significant drop in a ten-month period.
This week, investors will closely monitor the Israel-Hamas war and its potential repercussions on global markets.
Also, the start of earnings season is anticipated, featuring notable reports from major banks and financial institutions such as JPMorgan Chase, Wells Fargo, Citigroup, BlackRock, and PNC Financial Services. Furthermore, companies like PepsiCo, Delta Air Lines, Walgreens Boots Alliance, and UnitedHealth are scheduled to release their earnings updates.
Regarding economic data, Wednesday and Thursday will provide fresh insights into inflation trends, as updates on producer and consumer prices are awaited. Moreover, Wednesday will witness the release of meeting minutes from the Federal Reserve’s most recent Federal Open Market Committee (FOMC) meeting, shedding light on their discussions and decisions.
Lastly, commencing on Tuesday, Amazon is gearing up for its two-day event known as “Prime Big Deal Days,” exclusively available to Prime members. This event promises a multitude of deals and discounts on popular brands and products.
Tuesday, Oct. 10
- PepsiCo. (PEP) and Neogen Corp. (NEOG) report earnings
- NFIB Business Optimism Index (Sept)
- Consumer Inflation Expectations (Sept)
- Wholesale Inventories (Aug)
- Day 1 of Amazon Prime Big Deal Days Event
Wednesday, Oct. 11
- Producer Price Index (PPI) (Sept)
- FOMC Meeting Minutes
- Day 2 of Amazon Prime Big Deal Days Event
Thursday, Oct. 12
- Infosys Ltd. (INFY), Fastenal Co. (FAST), Delta Air Lines (DAL), Walgreens Boots Alliance (WBA), Domino’s Pizza (DPZ), and Commercial Metals Co. (CMC) report earnings
- Consumer Price Index (CPI) (Sept)
- China Inflation Rate (Sept)
- China Trade Balance (Sept)
Friday, Oct. 13
- UnitedHealth Group (UNH), JPMorgan Chase (JPM), BlackRock (BLK), Progressive Corp. (PROG), Citigroup (C), Wells Fargo (WFC), and PNC Financial Services (PNC) report earnings
- Michigan Consumer Sentiment Index - Preliminary Reading (Oct)