All three major equity benchmarks rose last week as Wall Street braced for earnings season. The S&P 500 index led the way, advancing 1.2%, while the Dow Jones Industrial Average and Nasdaq Composite rose 0.9% and 0.6%, respectively.
The S&P and Nasdaq both closed at record highs on Tuesday before dipping slightly to close out the week. That those two indexes are less than 1% from their peaks, despite elevated oil prices and multi-decade-high Treasury yields, is a testament to investors' confidence in the earnings power of corporate America. S&P 500 third-quarter profit growth is expected to jump 29.6% from a year earlier, according to FactSet estimates. That would be the third consecutive quarter of greater-than 25% earnings growth.
Twenty-six S&P 500 companies are slated to report earnings this week, the majority of which are in the financial sector. Citigroup, JPMorgan Chase, Goldman Sachs Group, and Wells Fargo will release quarterly results on Tuesday, followed by Bank of America, BlackRock, and Morgan Stanley on Wednesday, and Charles Schwab and Interactive Brokers Group on Thursday.
Outside the financial sector, Johnson & Johnson and UnitedHealth Group will announce earnings on Tuesday, while ASML Holding will report on Wednesday, followed by Taiwan Semiconductor Manufacturing on Thursday.
The big economic data release this week will be Wednesday's consumer price index from the Bureau of Labor Statistics. Stubbornly high inflation remains the focus of the Federal Open Market Committee, which will meet at the end of the month to set monetary policy.
On Thursday, the BLS will release the producer price index, and the Census Bureau will report retail sales data.
Monday 10/12
Fixed-income markets are closed in observance of Columbus Day.
Tuesday 10/13
Albertsons, Citigroup, Domino's Pizza, Goldman Sachs Group, Johnson & Johnson, JPMorgan Chase, UnitedHealth Group, and Wells Fargo report quarterly results.
The National Federation of Independent Business releases its Small Business Optimism Index for September. The consensus call is for a 98 reading, about one point less than in August, and right in line with the 52-year average.
The National Association of Realtors reports existing-home sales for September. Economists forecast a seasonally adjusted annual rate of 3.96 million homes sold, roughly even with the August figure. Existing-home sales remain near the low they hit after the the 2008-09 financial crisis, as 30-year mortgage rates have soared past 7%.
Wednesday 10/14
ASML Holding, Bank of America, BlackRock, Fastenal, Morgan Stanley, Progressive, and State Street release earnings.
The Bureau of Labor Statistics releases the consumer price index for September. Consensus estimate is for a 3.6% year-over-year increase, two-tenths of a percentage point more than in August. The core CPI, which strips out volatile food and energy prices, is expected to rise 2.5%, compared with 2.4% previously.
The Federal Reserve releases the beige book for the seventh of eight times this year. The report gathers anecdotal information on current economic conditions from the 12 regional Federal Reserve banks.
Thursday 10/15
Alcoa, Bank of New York Mellon, Charles Schwab, Interactive Brokers Group, J.B. Hunt Transport Services, Marsh & McLennan, PNC Financial Services Group, Prologis, Taiwan Semiconductor Manufacturing, and U.S. Bancorp announce quarterly results.
The Census Bureau reports retail sales data for September. Economists forecast a 0.3% month-over-month gain, after a 1.1% jump in August. Excluding autos and gas, sales are seen rising 0.2%.
The BLS releases the producer price index for September. The consensus call is for a 5.3% year-over-year jump, while the core PPI is expected to rise 4.4%. This compares with increases of 5.4% and 4.6%, respectively, in August.
Friday 10/16
Citizens Financial Group, M&T Bank, Regions Financial, Travelers, and Truist Financial report earnings.