Despite some great economic data coming out last week, the major US indices didn’t surge as you might expect them to. Unfortunately, the Nasdaq, S&P, and Dow were up slightly, and the Russell was down slightly on a week-over-week basis. However, we’re not out of the woods yet. We have a huge week ahead of us in terms of economic data. Additionally, Q3 earnings season kicks off this week, with the big banks coming out and setting the stage for the rest of the companies waiting in the wings to release their earnings.
Last week, we saw some incredible beats on the labor market front. To start things off, the JOLTS report came in with 8 million job openings for the month of August, compared to an expected 7.7 million jobs. We also saw the unemployment rate tick below expectations, coming in at 4.1% versus an expected 4.2%. Lastly, nonfarm payrolls surged past expectations, with the actual reading coming in at 254,000 jobs added during the month of September, compared to an expected 150,000. This is an indicator that the economy is still in great shape, despite what naysayers have been saying.
We won’t get a week off this week, as we kick things off on Wednesday with speeches from various Fed officials as well as the FOMC meeting minutes. Then, on Thursday, we get the highly anticipated CPI data for the month of September. Lastly, on Friday, we get PPI numbers as well as the preliminary reading of consumer sentiment for the month of October. Needless to say, this week is going to be a big week in terms of economic data releases. The markets are going to keep a close eye on the inflation metrics, especially since we saw our first rate cut just a couple of weeks ago.
This week, Q3 earnings season kicks off as some of the largest banks in the world report their earnings.
10/08 – Pepsico (PEP)
10/10 – Infosys (INFY), Delta Air Lines (DAL), Domino’s Pizza (DPZ)
10/11 – JP Morgan Chase (JPM), Wells Fargo (WFC), Progressive (PGR), BlackRock (BLK), The Bank of New York Mellon (BK), Fastenal (FAST)
As with the beginning of every earnings season, the banks will be the main focus of everyone this week. Analysts and retail investors alike will be patiently waiting to hear what the banking behemoths like JPM, WFC, and BK have to say about their previous quarter. We’ll likely also get some insightful commentary from Wall Street’s favorite big bank CEO, Jamie Dimon, as well!
Monitoring the market conditions this week.
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