As we embark on a new week, staying informed about upcoming economic events and news releases is crucial for making informed financial decisions.
Earnings Reports :
Next week could be one of the busiest of the current earnings season. We’ll get the last reports from the financial sector early in the week, with Charles Schwab, Bank of America, Goldman Sachs, and Morgan Stanley all scheduled to report. Johnson & Johnson and Lockheed Martin also will report on Tuesday, while Tesla, Procter & Gamble, and Netflix will follow on Wednesday. AT&T and TSMC will report on Thursday, and American Express will release its earnings on Friday. Investors will be paying close attention to these earnings reports for indications of corporate performance and guidance for the future.
U.S. Retail Sales :
On Tuesday, October 17, the U.S. Census Bureau will release its September retail sales report, providing insights into consumer spending patterns. Retail sales are a key indicator of economic health, as consumer spending accounts for a significant portion of the U.S. economy. Retail sales have risen for five consecutive months as consumers remain willing to spend, despite persistently high inflation and rising interest rates. Robust consumer spending, which accounts for more than two-thirds of U.S. GDP , is one of the reasons the U.S. has been able to avoid a recession. Analysts anticipate a 0.7% increase in retail sales for September, following a 0.4% rise in August.
FOMC speeches :
The upcoming week is filled with Fed speak, as traders will focus on Fed Chair Jerome Powell’s speech at the Economic Club of New York and with the release of their Beige Book. The Fed hawks Bowman and Waller will draw extra attention to see if they are close to abandoning their calls for further tightening. A detailed look into the discussions and deliberations of the FOMC, will provide valuable insights into the Fed’s monetary policy stance. Investors will closely scrutinize the minutes for clues regarding future interest rate decisions.
U.S. Housing Starts :
The U.S. Census Bureau will release its September housing starts report, shedding light on the health of the housing market. Housing starts, a measure of new home construction, are considered a leading economic indicator. Economists forecast a slight decline in housing starts for September, following a 1.4% increase in August. he National Association of Home Builders (NAHB) will issue its Housing Market Index (HMI) for October, tracking sentiment among executives in the homebuilding industry. Housing starts and building permits, proxies for new home construction, will follow on Wednesday. The data on September’s existing home sales will come out on Thursday.
Global Economic Data :
Beyond the U.S., economic data releases from around the globe will also be in focus. On Wednesday, October 18, the Eurozone will release its September inflation figures. On Friday, October 20, China will release its third-quarter GDP data. These releases could influence market sentiment and currency valuations. In the UK , There are a number of key economic releases to watch out for next week, the most obvious being CPI inflation on Wednesday but jobs figures on Tuesday and retail sales on Friday will also be very closely monitored. In Australia , RBA meeting minutes will be released on Tuesday and market participants will be on the lookout for any dovish comments after the official cash policy rate was left unchanged at 4.1% for the fourth consecutive meeting. Employment change for September will be out on Thursday where it is forecasted to decrease to a smaller magnitude of +15K from +64.9K jobs added in August. In New Zealand, Q3 inflation rate will be released on Tuesday.
In conclusion, this week presents a packed schedule of news and data releases that could shape market movements and investment strategies. Staying informed and analyzing these developments will be crucial for navigating the financial markets effectively.
Trade Safe. Happy Trading !