Markets This Week, 10/9-10/13, 2023: From Jobs to Prices

Economy and Markets: The Week Ahead

Stocks staged a surprising rally on Friday, led by technology stocks, after the latest jobs report, which was assessed as a reflection of a Goldilocks labor market. September’s report showed that employment increased by the most in eight months, while wage growth slowed significantly. Thanks to the rally, most major U.S. indexes closed the week in the black.

The extent of hiring growth in September, coupled with the upward revisions for prior months, indicated that the job market hasn’t cooled as much as was previously thought. On the other hand, wage growth is perceived as one of the major factors of entrenched high inflation, so that the moderation of this measure may point to a weakening labor market.

The producer and consumer inflation data, scheduled to be published this week, is of utmost importance. It will add to the previously released economic reports and allow policymakers to better assess the inflationary trends influencing their monetary policy decisions.    

In this uncertain environment, investors are recommended to base their decisions on trustworthy data and analysis.

Upcoming Earnings and Dividend Announcements

The Q2 2023 reporting season has almost ended, but there are still companies reporting this week.

The most noteworthy earnings events this coming week are the reports of PepsiCo (PEP), Delta Air Lines (DAL),Wells Fargo (WFC), BlackRock (BLK), Citigroup (C), and UnitedHealth Group (UNH).

Companies’ reporting dates, consensus EPS forecasts, past data, analyst ratings, and price targets can be found on the TipRanks Earnings Calendar.

This week, Ex-Dividend dates are coming for the payouts of Micron (MU), American Tower (AMT), Oracle (ORCL), Accenture (ACN), AbbVie (ABBV), Abbott Labs (ABT), and other dividend-paying firms.

Companies’ Ex-Dividend and Dividend Payment dates, analyst ratings, and price targets can be found on the TipRanks Dividend Calendar.

Upcoming Economic Calendar Events

There are several very important reports scheduled to be published in the next few days:

» September’s Producer Price Index (PPI) – Wednesday, 10/11 – This report, released by the Bureau of Labor statistics, reflects input prices for producers and manufacturers. Since PPI measures the costs of producing consumer goods, which directly affects retail pricing, PPI is seen as a good pre-indicator of inflationary pressures, i.e., a leading indicator for the next months’ CPI. Thus, the PPI serves the policymakers in shaping their overall inflation outlook. 

» September’s Consumer Price Index (CPI) – Thursday, 10/12 – This report, released by the Bureau of Labor statistics, measures the changes in the retail prices of goods and services over the previous month. It is one of the two key inflation measures (the second one is the Personal Consumption Expenditures, or PCE). Policymakers, businesses, and consumers closely watch the CPI report, as it reflects the price trends in the economy, shapes consumer spending and business outlooks, and directly affects the Federal Reserve’s policy rate decisions.  

» October’s Consumer Sentiment Index (preliminary)– Friday, 9/13 – This report, released by the University of Michigan, reflects the level of confidence the consumers feel towards the economy. This confidence affects consumer spending in the short term. Thus, the Index is used by economists, analysts, and policymakers as a leading indicator, helping to unveil the near-future trends in consumer demand, which directly affects economic growth.    

Current and scheduled economic reports, Fed statements, and other releases, as well as their level of impact on stock markets, can be found on the TipRanks Economic Calendar.