Next week, major Wall Street banks will announce their earnings, with Bank of America, Citigroup, and Goldman Sachs scheduled for Tuesday, US Bancorp on Wednesday, and Morgan Stanley on Thursday.
The financial sector is anticipated to experience a challenging quarter, with insiders predicting a year-over-year earnings decline of 0.4%. Specifically, the banking industry is expected to see a more significant drop in earnings, projected at 12%. In contrast, the Investment Banking & Brokerage sector is forecasted to witness a growth of 12%. Overall, earnings for the broader S&P 500 are expected to increase by 4.1% compared to last year.
In addition to the big banks, several technology companies will also report their earnings. Notable highlights include ASML Holdings, a semiconductor company on Wednesday, and Netflix along with Taiwan Semiconductor on Thursday.
Looking to grow your wealth?
Let me help you make your money work for you
Managed Investment Accounts – harness the expertise of professional asset management. I’ll focus on growing your wealth, so you can focus on living your best life.
Automated Trading System – effortlessly grow your capital with our automated trading solutions
On Tuesday, other companies reporting include Albertsons, Interactive Brokers, Johnson & Johnson, Rio Tinto, United Airlines, and UnitedHealth Group. Wednesday will feature Abbott Labs, CSX, Discover, Kinder Morgan, Las Vegas Sands, and Prologis. Finally, Thursday’s reports will come from Blackstone, Elevance Health, Freeport McMoRan, and The Travelers Companies.
Economic Indicators to Monitor
Investors will be keenly watching the upcoming Producer Price Index (PPI) following a stronger-than-expected Consumer Price Index (CPI) report for September. Although the CPI’s headline rate dipped slightly, it remained above Wall Street expectations. Notably, the core rate, which excludes food and energy, rose by one-tenth of a percentage point.
September’s inflation was primarily driven by increases in apparel, food, and services. Key economic indicators scheduled for release next week include the Empire State Manufacturing Index on Tuesday, Import/Export Prices on Wednesday, Retail Sales, Business Inventories, and Industrial Production on Thursday, and Housing Starts and Permits on Friday.
Interestingly, the market did not react severely to the recent CPI data, which was higher than anticipated. This could be attributed to the overall direction of inflation, which appears to be stabilizing, and the Federal Reserve’s shift in focus towards the labor market—particularly after the recent report indicating the highest weekly job losses in over a year. However, concerns persist about a potential resurgence of inflation, especially if geopolitical tensions, such as a conflict involving Iran, lead to spikes in oil prices.
It’s worth noting that the S&P 500 has experienced substantial growth since its low point in 2022, which was just above 3,500. Currently, it trades over 5,800, reflecting an impressive return of nearly 60%.
Stay tuned for these key earnings reports and economic indicators that could shape market sentiment in the coming week.
Wishing you a great week!
Want to make your trading more profitable?
Subscribe to get free research, trading lessons, and more insights.
(We do not share your data with anybody, and only use it for its intended purpose)
