Last week, we saw a tremendous amount of green in the market, with the Dow up 1.42%, the S&P up 1.51%, the Russell up 1.69%, and the Nasdaq up 1.72% on a week over week basis. This incredible amount of green in the market came on the back of some better than anticipated earnings releases and some better than anticipated PPI numbers. However, it’s important to remember that we’re not out of the woods yet. Earnings season kicks off in a huge way this week, so we’re bound to see some volatility in the markets!
Last week, reports came out for both CPI and PPI, which gave us some mixed signals. CPI came in 0.1% higher than expected across the board, whereas PPI came in 0.1% lower than expected across the board. Additionally, we saw consumer credit come in quite a bit lower than anticipated, at $8.9 billion, as opposed to an expected $13.2 billion. Given the inconclusive nature of the inflation numbers, we can’t really draw any definitive conclusions. However, it will be important to pay attention to where inflation goes over the coming months, as we all know this will weigh heavily on the Fed’s interest rate decision.
Although things are a bit slower in terms of economic data releases next week, there will still be a few important ones to pay attention to. Things kick off with retail sales and the homebuilder confidence index on Thursday, followed by housing starts and building permits on Friday. This means we’ll get a good idea of whether or not consumers are spending money in addition to whether or not the federal funds rate cut had any immediate effect on housing demand.
Q3 earnings season really starts up this week, as we have our first week that’s jam packed with earnings releases. We’ll see the following companies report this week:
10/15 – UnitedHealth Group (UNH), Johnson & Johnson (JNJ), Bank of America Corporation (BAC), Goldman Sachs Group (GS), Citigroup (C), Rio Tinto (RIO), PNC Financial Services Group (PNC), State Street Corporation (STT), Ericsson (ERIC), United Airlines (UAL), JB Hunt Transport Services (JBHT), Interactive Brokers Group (IBKR), Albertsons Companies (ACI)
10/16 – ASML Holding (ASML), Abbott Laboratories (ABT), Prologis (PLD), U.S. Bankcorp (USB), CSX Corporation (CSX), Kinder Morgan (KMI), Crown Castle (CCI), Las Vegas Sands (LVS), Discover Financial Services (DFS), Equifax (EFX), PPG Industries (PPG), Synchrony Financial (SYF)
10/17 – Taiwan Semiconductor Manufacturing (TSM), Netflix (NFLX), Morgan Stanley (MS), Intuitive Surgical (ISRG), Elevance Health (ELV), Marsh & McLennan Companies (MMC), Blackstone (BX), Freeport-McMoran (FCX), Truist Financial (TFC), The Travelers Companies (TRV), Wipro (WIT), M&T Bank (MTB), Nokia Corporation (NOK)
10/18 – Procter & Gamble (GP), American Express (AXP), Schlumberger (SLB), Fifth Third (FITB)
This week, Q3 earnings season really kicks off, with the remaining large banks, like GS, C, STT, USB, and MS reporting their earnings. We’ll likely hear more of the same commentary from the other big banks that reported their earnings last week, but it’ll still be important to pay attention to what they have to say about their underlying business and the effect of Fed rate cuts.
Everyone will also be interested in hearing what ASML and TSM have to say about the semiconductor space. As we all know, the sector has been white hot, and these two giants will more than likely move NVDA, depending on what they have to say in their calls.
Lastly, the first tech company of the quarter, NFLX will report their earnings. They will set the stage for large and mega cap tech in a huge way, so it’ll be important to pay attention to what they have to say on their call!
Monitoring the market conditions this week.
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