What to Expect in the Week Ahead (Fed Meeting, Jobs Data, Roku and Uber Earnings)

Moomoo Breakfast US wrote a column · Oct 31, 2022 09:23

What to Expect in the Week Ahead (Fed Meeting, Jobs Data, Roku and Uber Earnings)

It's another busy week of third-quarter earnings, plus an expected interest-rate increase by the Federal Reserve. The central bank's policy committee meets on Tuesday and Wednesday, and is widely projected to lift its target rate by three-quarters of a percentage point for a fourth-straight time, to 3.75%-4%. The week closes with the October jobs report.

Some 160 $S&P 500 Index (.SPX.US)$ companies are scheduled to report this week. $Arista Networks (ANET.US)$, $NXP Semiconductors (NXPI.US)$, and $Stryker Corp (SYK.US)$ kick things off on Monday, followed by a busy Tuesday: $Airbnb (ABNB.US)$, $Advanced Micro Devices (AMD.US)$, $BP PLC (BP.US)$, $Marathon Petroleum (MPC.US)$, $Newmont (NEM.US)$, $Pfizer (PFE.US)$, $Simon Property (SPG.US)$, and $Uber Technologies (UBER.US)$ all report.

Wednesday's earnings highlights will include $Booking Holdings (BKNG.US)$, $CVS Health (CVS.US)$, $eBay (EBAY.US)$, $Paramount Global-B (PARA.US)$, and $Qualcomm (QCOM.US)$. $ConocoPhillips (COP.US)$, $Moderna (MRNA.US)$, $PayPal (PYPL.US)$, $Starbucks (SBUX.US)$, and $Warner Bros Discovery (WBD.US)$ report on Thursday, then $Cardinal Health (CAH.US)$ and $Duke Energy (DUK.US)$ close the week on Friday.

Economic data to watch this week will include October employment figures from the Bureau of Labor Statistics. On average, economists are forecasting a gain of 225,000 nonfarm payrolls, following growth of 263,000 in September. The unemployment rate is seen ticking up to 3.6%.

Tuesday's Job Openings will provide additional insight into the state of the U.S. labor market.

Other economic data out this week includes the Institute for Supply Management's Manufacturing Purchasing Managers' Index for October on Tuesday and the Services equivalent on Thursday.

Monday 10/31

$Arista Networks (ANET.US)$, $NXP Semiconductors (NXPI.US)$, and $Stryker Corp (SYK.US)$ release earnings.

The Institute for Supply Management releases its Chicago Business Barometer for October. Consensus estimate is for a 47 reading, about one point more than September's 45.7. The September figure was the lowest and the first reading below 50 since June 2020, indicating a contracting economy.

Tuesday 11/1

$Airbnb (ABNB.US)$, $Advanced Micro Devices (AMD.US)$, $BP PLC (BP.US)$, $Devon Energy (DVN.US)$, $Eli Lilly and Co (LLY.US)$, $Marathon Petroleum (MPC.US)$, $Mondelez International (MDLZ.US)$, $Newmont (NEM.US)$, $Pfizer (PFE.US)$, $Simon Property (SPG.US)$, and $Uber Technologies (UBER.US)$ report quarterly results.

The Bureau of Labor Statistics releases the Job Openings. The ISM releases its Manufacturing Purchasing Managers' Index for October.

Wednesday 11/2

The Federal Open Market Committee announces its monetary-policy decision. Wall Street expects a three-quarters of a percentage point increase, bringing the federal-funds rate to 3.75%-4%.

$Booking Holdings (BKNG.US)$, $CVS Health (CVS.US)$, $eBay (EBAY.US)$, $Estee Lauder (EL.US)$, $Paramount Global-B (PARA.US)$, $Qualcomm (QCOM.US)$, and $Yum! Brands (YUM.US)$ announce earnings.

ADP releases its National Employment Report for October. The consensus call is for private-sector employment to increase by 190,000, slightly below the 208,000 gain in September. Job growth has moderated somewhat following a torrid 18-month stretch.

Thursday 11/3

$Amgen (AMGN.US)$, $ConocoPhillips (COP.US)$, $Marriott International (MAR.US)$, $Moderna (MRNA.US)$, $PayPal (PYPL.US)$, $Starbucks (SBUX.US)$, and $Warner Bros Discovery (WBD.US)$ conference calls to discuss quarterly results.

ISM releases its Services PMI for October. Economists forecast a 55.5 reading, which would be slightly less than the September data.

Friday 11/4

$Cardinal Health (CAH.US)$, $Duke Energy (DUK.US)$, and $DraftKings (DKNG.US)$ release earnings.

The BLS releases the jobs report for October. The economy is expected to add 225,000 nonfarm payrolls after a 263,000 increase in September. The unemployment rate is seen edging up to 3.6% from 3.5%, near half-century lows.

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