This week, U.S. markets are set to focus on key retail sales data and major corporate earnings releases, all while speculation continues over the Federal Reserve’s next move regarding interest rates. Last week, the Nasdaq, S&P 500, and Dow Jones all closed with gains of over 1%, with the Dow and S&P 500 hitting all-time highs on Friday.
In the upcoming week, investors will be closely watching the September retail sales report, which is expected to provide insights into whether the U.S. economy is continuing to accelerate. Corporate earnings reports from big players like Bank of America, Goldman Sachs, and Netflix will also be in the spotlight.
Big Banks and Netflix in Focus Bank of America, Goldman Sachs, and Morgan Stanley are set to release their earnings early this week, wrapping up the reports from the major banks. Later in the week, United Airlines and Netflix will report earnings, with Netflix’s results drawing particular attention due to its strong stock performance this year. Wall Street anticipates Netflix will report earnings per share of $5.16, with revenue projected at $9.77 billion.
Fed Rate Speculation Grows Investors are debating whether the Federal Reserve will pause interest rate cuts at its November meeting, especially after the release of the September jobs report and recent inflation data. Both the Consumer Price Index (CPI) and Producer Price Index (PPI) showed core price increases above expectations, adding to the uncertainty around the Fed’s decision.
Market sentiment has shifted, with an 18% chance now being priced in that the Fed may not cut rates in November, up from just 3% a week ago. As economic data continues to be released, investors will keep an eye on any signals that may impact the Fed’s decision.
Retail Sales Data Key to Economic Outlook A major economic event this week is the release of the September retail sales report on Thursday. This report will provide crucial data on consumer spending and offer further insight into whether the economy is gaining momentum following the strong jobs data from September.
Rising Treasury Yields Treasury yields are also a point of interest, with the 10-year yield nearing 4.1%—the highest since late July. Rising yields have typically been a headwind for stocks, but analysts are cautious to say whether they’ve reached a level that could seriously hinder stock performance.
Overall, this week’s events will provide important data and earnings reports, offering investors a clearer view of the state of the U.S. economy and the potential direction of Federal Reserve policy in the coming months.
